Connect with us

Hi, what are you looking for?

Editor's Pick

Krugman Misses the Mark on CBDCs—Again

Norbert Michel and Nicholas Anthony

This April Forbes column describes why central bank digital currencies (CBDCs) are a fundamental issue related to Americans’ freedom and much bigger than just politics. It argues that New York Times columnist Paul Krugman, famous for being wrong about the Internet, was wrong for claiming presidential hopeful Ron DeSantis was merely playing politics with CBDCs.

Nonetheless, Krugman has doubled down. As Crowdfund Insider explains, now he’s taken to Twitter to re‐​promote his original opinion piece and to liken DeSantis’s warnings about CBDCs to former presidential candidate Rick Santorum’s fight against the National Weather Service.

Contrary to Krugman’s framing, DeSantis’s claims about the risks of CBDCs have merit. As the Forbes piece demonstrated, proponents of CBDCs, even some government officials who would be in charge of implementing CBDCs, have openly discussed using CBDCs for exactly the purposes DeSantis claimed. (Nick and I have a longer list here.)

A CBDC is not “just another form of money,” as some of its supporters have claimed. A fully implemented CBDC is a complete government takeover of money and payments. As the experience in China and Nigeria have shown, the introduction of a CBDC comes with the removal of people’s freedom to choose their methods of payment.

CBDCs mark a fundamental threat to both economic and political freedom. But it should surprise no one that Krugman is wrong on this issue.

You May Also Like

Editor's Pick

Walter Olson You sometimes hear people talk as if even plaintiffs with meritorious cases can’t win libel suits in American courts because of the...

Editor's Pick

Marc Joffe Federal, state, and local governments are being called upon to support struggling transit agencies to meet climate change goals. But spending money...

Editor's Pick

David Boaz A new study by the Indian newspaper The Print, based on data from The Economist Intelligence Unit’s Democracy Index 2022, finds that...

Editor's Pick

Jeffrey A. Singer Earlier this week, the Food and Drug Administration issued a draft of proposed guidelines for clinical researchers conducting trials on psychedelic drugs....