Economist and former Greek Finance Minister Janis Varoufakis has observed that banks in the US, such as JPMorgan, are fearful of the potential implications of central bank digital currency (CBDC) on their businesses.
Varoufakis likened these current concerns to the indignation of tobacco companies when smokers were restricted from accessing carcinogens.
He argued that traditional banking services could experience a significant decline in their demand if a federal CBDC were released and that many may view the technology as oppressive.
However, the author argued that there could be a variety of positive impacts on the economy with the utilization of a responsibly implemented CBDC, such as increased security, tax collection, and the prevention of deflation.
In response to the potential for a federal CBDC, Texas senators introduced a bill in May to ban its usage while Florida Governor Ron DeSantis had previously signed a document against it, claiming it would protect citizens from potential weaponization of the financial sector by the government.