As Australian citizens we should be concerned about the disadvantages of a Central Bank Digital Currency.
Traceability: In the case where physical cash is eliminated entirely this eliminates our ability to transact in a fully anonymous manner.
Negative Rates: With CBDCs, you cannot withdraw your digital tokens and hold them under the mattress. If there is no option for physical cash this gives central banks ability to implement negative interest rates.
Programmability: CBDCs give central banks a unique opportunity to make money “programmable”. For example: Expiration, with a direct relationship with your central bank, CBDCs could permit a currency expiration policy. Your money could be programmed so that if you don’t spend the $5000 in your account by next Saturday, it will expire.
Personalised monetary policy: With a bank of Big Data on individual spending habits, coupled with digital identification infrastructure, the central bank will have enough information to tailor its monetary policy personally. For example if it is known that lower earners have a higher propensity to consume, stimulus can be directly delivered to those people. Personalised monetary policy could even become politicised. A government could segment its voters, identify communities where it is behind in polls, and deliver stimulus to these groups.
Petition Request: We therefore ask the House to enshrine the use of cash in law.
Closing date for signatures:21 December 2022 11:59 PM
posted 10Dec22 (16,913 signed)
11am 11Dec22 (24,964 signed)
11pm 11Dec22 (36,293 signed)
11pm 15Dec22 (91,668 signed)
11pm 17Dec22 (102,957 signed)
9.pm 19Dec22 (110,851 signed)