Former BitMEX head calls digital currencies

Former BitMEX head calls digital currencies "pure evil"

According to Arthur Hayes, CBDC will be a police tool and social progress of society will become impossible Former BitMEX cryptocurrency exchange executive Arthur Hayes called digital central bank currencies (CBDCs) "pure evil." In his new essay, he says that for ordinary people, the introduction of this type of national currencies represents a full-scale attack on the sovereignty of private transactions, and for commercial banks, a serious threat to their existence.

According to Hayes, CBDC is the most perfect tool for governments to change the behavior of their subjects, whose apathy will allow governments to easily remove physical cash from circulation and replace it with digital money for full financial oversight. He explains in detail how CBDCs can be implemented, why it is disadvantageous to banks, and what it might lead to.

Hayes suggests that the authorities will take advantage of the ability to program CBDCs for political purposes. For example, those who have capital may be prohibited from investing it in anything other than government bonds, such as gold, foreign securities or bitcoin. Also, CBDCs can be used by government to exert direct control over who is permitted to make transactions and for what purpose, the essays say.

In addition, Hayes believes that CBDCs, in the absence of cash, will become a policing tool. He cites the example that people who protest or disagree with a point of view could be completely excluded from the financial system. There can be no social advancement under such a money regime, because there will be no way to organize effectively versus the Government.

In his view, CBDCs in one form or another will be launched in all major economies, even though private banks will prevent governments from introducing such a national currency. Most of the population will not wonder why their physical money has disappeared and why their financial sovereignty has been openly taken away from them, Hayes believes.

He said he is optimistic because it is still possible to buy bitcoin today. But, he says, that won't last indefinitely: controls on capital movements are looming, and once all cash is digital and certain operations are prohibited, the ability to buy bitcoin will quickly fade away. The best day to buy the first cryptocurrency was yesterday, Hayes concludes.

In late October, the former BitMEX chief cited a sign of the start of a cryptocurrency bull market. He said Hong Kong's intentions to make digital currencies legal as an enabler between China and the rest of the world may be the beginning of a new upward trend.

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