In his latest “Pure Evil” blog post, Arthur Hayes, former CEO of crypto derivatives platform BitMEX, argued that banks may limit the impact of the “horror story” of CBDCs.

Hayes: Bitcoin and banks stand up against CBDC ‘dystopia’
CBDCs are currently in various stages of development around the world.

Lovers of financial sovereignty naturally fear and even despise them, says Hayes, because they point to the government’s total control over everyone’s money and purchasing power—”a direct attack on our ability to have sovereignty over honest transactions between us”.

Among the opponents of the CBD are not only bitcoins, however. Sharing the reason is likely commercial banks that sought to oust them from power with BTC.

“I believe that the apathy of the majority will allow governments to easily withdraw our physical cash and replace it with a digital currency core, leading to a utopia (or dystopia) of financial control,” the blog post explained. Follow Hayes:

“But, we do have an unlikely ally that I believe will hinder the government’s ability to implement the most effective CBDC structure to control the general public — and that ally is the local commercial banks.”
When implementing a central bank digital currency, the government could either make the central bank the sole “node” in the digital network, or use commercial banks as nodes in a radical overhaul of the financial system. These two systems are called the “Direct Model” and the “Wholesale Model” respectively.

“Given that every country that has reached at least the stage of ‘choosing a CBDC model’ has opted for the wholesaling model, it is clear that no central bank wants to bankrupt its domestic commercial banks,” he said.

CBDC summary chart. Source: Arthur Hayes / Medium
As such, in order to “appease” the banks somewhat but still bring benefits such as eliminating cash, governments may eventually be kept in check by the kind of entities known for limiting cryptocurrency exchange transactions and blocking hackers’ accounts.

Hayes added, “For politicians who care more about power than profit, this is their opportunity to destroy the influence of banks too big to fail outright – yet they still seem politically incapable of doing so.”

‘Capital controls are coming’
The topic of CBDCs has received widespread attention even outside the cryptocurrency industry, as they represent a major shift in both money and politics.

Related: CBDCs Don’t Threat to Cryptocurrency – Binance CEO

In an interview with Cointelegraph last week, Richard Werner — a development economist and professor at De Montfort University — called it a “declaration of war.”

“In other words, the bank regulator suddenly says we are going to compete with the banks now because the banks have no chance. You cannot compete against the regulator,” he said.

Meanwhile, Hayes identified Bitcoin as a safe haven still available to those who actually oppose any form of a zero-sum monetary economy — though not for long.

Purchasing BTC will become increasingly difficult, or perhaps completely impossible, once CBDCs are implemented.

“This window will not last forever. Capital controls are coming, and when all money is digital and certain transactions are not allowed, the ability to buy Bitcoin will quickly disappear,” he warned, adding:

“If any of this ominous porn resonates with you and you don’t own at least a very small percentage of your liquid net worth in Bitcoin, the best day to buy Bitcoin was yesterday.”
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