Edward Snowden has a bit of reputation when it comes to being a whistleblower, and he has been working on his own for several years now, blowing the whistle on major government and corporation-oriented scams and illicit doings. When asked about his thoughts on the state-controlled CBDCs, he said that not only would it be the end of decentralization as we know it, but it would also annihilate savings for people who don’t deserve to be in a financial mess in the wee years of their lives.

The US Federal Reserve Bank is all but ready to pull the trigger on their hypothetical central bank digital currency or digital dollar, for instance. Snowden issued a very severe criticism on Twitter regarding the issuance of future CBDC by the Fed. If the Fed wishes to go with this scheme of theirs to issue a CBDC in the form of the digital dollar, then it will directly interfere with the savings of many people working at a nominal wage all their lives. They are expecting their savings to grow and bring them a healthy return in the future and not to deteriorate because of the deflationary nature of the CBDCs being proposed by the Fed.

CBDC Will Kill Decentralization

It is gold that is used as a hedge against inflation in crucial times and not the dollar itself; similarly, cryptocurrencies still have a better chance at proving a more reasonable hedge against inflation than a centralized CBDC. Edward criticizes not on the innovation and willingness to work with digital assets of the Fed but creating their own token and nullifying the idea of decentralization because any token developed by the Fed will be centralized, and the state and the banks would be able to control it.

It would be as if there was no reform of any kind but a modern version of fiat currency being developed as a digital asset but still controlled in a centralized fashion. According to Snowden, there is no difference between the digital dollar and fed-controlled CBDC, but it is the digital dollar that will be more catastrophic than the CBDC itself, according to the whistleblower.