Central bank digital currency: freedom or control?

🇵🇱 Polski
Central bank digital currency: freedom or control?

Introduction

Central Bank Digital Currency (CBDC) is not just a technical novelty, but an ontological revolution in the world of finance. Unlike decentralized cryptocurrencies, CBDC is an instrument fully subordinated to the state and issued directly by the central bank. This signifies the ultimate dematerialization of money, which becomes exclusively digital code. In this article, you will learn how this shift will affect your privacy, why it may threaten traditional banking, and whether the digital zloty will become a tool for social control.

CBDC vs Cash and Crypto: The End of Anonymity

The fundamental difference between CBDC and cash lies in the lack of anonymity. While a record in a commercial bank is a claim against that institution, a CBDC token is a direct liability of the state. Every transaction is tracked in real-time, enabling a mechanism of total control over the financial flows of citizens.

Through the programmability of money, the state gains tools for rationing: it can block specific purchases or assign "expiration dates" to funds, forcing consumption. Such an architecture allows for the implementation of a social credit system, where access to one's own money depends on loyalty to the authorities or compliance with behavioral norms. This is the realization of a vision of "soft despotism," where the convenience of payments becomes a cage for individual freedom.

CBDC Marginalizes the Role of Banks and Limits the Store-of-Value Function

The introduction of CBDC poses an existential threat to the commercial banking sector. If citizens can hold savings directly at the central bank, traditional intermediaries will lose deposits and the ability to create credit. The system could become completely centralized, subordinating the market to the decisions of officials.

The new currency drastically changes the classic store-of-value function (saving). Digital money allows for the easy application of negative interest rates, which is a form of hidden asset confiscation. Additionally, the mandatory transition to a digital system risks the exclusion of those unable to adapt, such as seniors, for whom cash is the last bastion of economic independence. Money ceases to be a secure store of value and becomes a steerable impulse for consumption.

The Digital Euro, Polish Sovereignty, and Biopolitical Surveillance

CBDC is a powerful tool of biopolitics—regulating life through algorithms. The state can condition transactions on climate or health goals, e.g., by limiting purchases of products with a high carbon footprint. On a global level, a geopolitical race is underway: the digital euro and yuan aim to challenge the hegemony of the dollar.

Poland faces a strategic dilemma. Adopting the digital euro means further centralization and the loss of the remnants of monetary sovereignty. Conversely, building its own digital zloty is a massive technological challenge. Passivity in this debate risks marginalizing the country to the role of a "monetary province," forced to adapt to rules imposed by global players. In this new order, every economic decision becomes an element of state surveillance.

Summary

The future of money is full of uncertainty, but one thing is certain: control will become increasingly ubiquitous. CBDC is the foundation of a system where economic freedom is replaced by bureaucratic regulation. We must answer the question: do we want our money to be merely a tool for an efficient economy, or also a guarantee of freedom? If we choose only convenience and security, we risk losing our agency. History teaches that a nation that gives up freedom for the sake of security ultimately loses both.

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Frequently Asked Questions

How is CBDC different from the money we currently have in our bank accounts?
Money in a commercial bank is a claim against that institution, while a CBDC is a direct obligation of the central bank, eliminating intermediaries and credit risk.
How can CBDC restrict individual freedom?
Thanks to full transaction visibility, the state can arbitrarily block purchases, introduce social credit systems, and condition access to funds on desired behavior.
What does it mean that CBDC is programmable money?
This means that a currency can be assigned a code that specifies what, when and by whom it can be spent, including an expiry date mechanism.
What impact will the implementation of CBDC have on commercial banks?
It may lead to their marginalization or collapse, as citizens will be able to safely store their savings directly at the central bank.
Is Poland planning to introduce a digital zloty?
The National Bank of Poland conducts analyses and observes international trends, although officially Poland currently maintains its distance from the rapid implementation of CBDC.

Related Questions

Tags: CBDC Central bank digital currency Blockchain Hashgraph Programmable money Transactional control Monetary sovereignty Social credit Biopolitics Banking sector Negative interest rates Money transmission Contingent money European Central Bank Dematerialization of money