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Should central banks introduce digital currencies (CBDCs) that fully replace cash — even though this makes every transaction traceable?

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Context

China has already introduced the digital yuan for 1 billion people. The ECB plans a digital euro. Proponents see advantages in monetary policy and crime-fighting; privacy advocates and libertarians warn of seamless state financial surveillance.

Real-world source

European Commission · 6/28/2023
Proposal COM(2023) 369 — establishment of the digital euro (as complement to cash)

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