Central Bank Digital Currencies (CBDC) and Socialism: Implications for Economic and Social Change

Abstract

The world of finance has been undergoing rapid transformation, with the rise of cryptocurrencies and decentralized financial systems challenging traditional monetary frameworks. Central banks worldwide are exploring the potential of Central Bank Digital Currencies (CBDCs) to maintain their influence and adapt to this evolving landscape. Understanding their implications on social and economic systems is crucial as CBDCs emerge as a potential response to these challenges. Conversely, the potential impact of CBDCs extends beyond these claimed economic benefits, raising questions about their potential role in promoting or impeding broader social and political changes. This paper briefly examines the potential implications of CBDCs on the advancement of socialism, totalitarianism, and the emergence of social credit scores in the United States and discusses the challenges and opportunities posed by CBDCs in this context and the need for policymakers to carefully consider the broader implications of digital currencies as they chart a course for the future of finance.

Keywords: cryptocurrency, money, CBDC, socialism, social change, economics