The use of cash has given way to digital payments as the pandemic has changed the way people around the world participate. Recently, some experts have argued that the central bank’s digital currencies could solve the problem of transferring this payment data into the hands of major technical specialists. platforms.
The report, released Monday morning, explains why Federal Reserve Bank of New York Fed researcher Michael Lee and California Economics University professor Rhode Santa Barbara are raiding a research paper they released earlier this month.
The authors point to the worrying use of consumer data by technology companies, which has caused everyone from Visa to Facebook to face problems due to potential antitrust violations. The blog post says:
“Allowing transactions where digital payment companies receiving personal information for consumers, cash does not. Data transferred between companies. With exclusive access to their customer data, you can use that information to gain a competitive advantage.”
Researchers suggest that digital trading currency is the best successor to cash in terms of efficiency and consumer protection in the digital age. Although the post mentions cryptocurrencies as a stand-alone alternative to larger payment platforms, it does not explicitly support CBD’s distributed ledger technology. However, he says the CBDC will be cheaper and greener:
“Privacy-retaining alternative digital payments, such as cryptocurrencies, have high transaction costs and can be costly for the environment. Private measures offered by BigTech companies are likely to lead to reduced privacy. ”
CBDC research is accelerating. Originally, interest in the pandemic arose, and now central banks and large financial institutions are busy examining what needs to be changed in different jurisdictions to digitize their money.
Among the world’s largest economies, China is considered by many to be a leader in the CBDC race. Others, however, claim that this is because the Chinese government has no interest in discussing the privacy features of the digital yuan, which will eventually become a surveillance tool.
Michael Lee did not respond to a request for comment from Cointelegraph at the time of his admission.