Agreed. And this is precisely why @norbertjmichel and I published a new paper calling for both the Federal Reserve and the Treasury to be prohibited from issuing a central bank digital currency, or CBDC.

The paper is here: cato.org/sites/cato.org…

But I'll break it down below.🧵

https://twitter.com/justinamash/status/1592919434112700416

Proponents claim a CBDC would promote financial inclusion, spur faster payments, protect the dollar's status, and improve monetary policy---all worthy goals.

Yet all four arguments fail to stand up to scrutiny.

I'm very excited to share the @CatoCMFA's new policy guide for the next Congress!

Here's a brief thread on some of the recommendations. 🧵

cato.org/sound-financia… First, we call for stronger financial privacy protections. The U.S. government has been chipping away at financial privacy for decades with little to no public oversight.

It's time to restore the protections that should have been there all this time.

All eyes are on Jackson Hole, but the real statement of the summer came from @neelkashkari: “I keep asking anybody to explain to me what problem [a CBDC] is solving.” 🧵 I may not always agree with @neelkashkari, but he is absolutely correct when he points out that he can send anyone money with Venmo. You don’t need a CBDC to do that.

The UN officially recommends restricting cryptocurrency and providing a CBDC. Here's a quick thread on why this recommendation couldn't be more flawed. 🧵

UN report: unctad.org/system/files/o… h/t: @gladstein While I wrote this paper with the U.S. Congress in mind, every country should be looking towards cryptocurrencies for lessons on how to improve their domestic currencies.
cato.org/briefing-paper…