rather than decentralized like most cryptocurrencies, the controllers of the issuance of CBDCs can add or remove money from anyone's account with a flip of a switch. In contrast, cryptocurrencies with a distributed ledger such as Bitcoin prevent this unless a group of users controlling more than 50% of mining power is in agreement. Digital dollarization: A well-run foreign digital currency could become a replacement for a local currency for the same reasons as those described in dollarization. The announcement of Facebook's Libra contributed to the increased attention to CBDCs by central bankers, as well as China's progress with DCEP to that of several Asian economies. Privacy: "Governments have direct visibility of financial transactions", an "eagle-eyed view on the spending of everyone". Digital currency would give a country "broad new powers when it comes to surveillance and controlling its population." Data from tracing money routes could lead to losing financial privacy if the CBDC implementation does not have adequate privacy protections. This could lead to encouraging of self-censorship, deterioration of freedom of expression and association, and ultimately to stalling social developments. Government Social Manipulation: Digital currency "will simply become an extension of the surveillance state" and "it could see citizens fined in a split second for behaviors deemed undesirable. Dissidents and activists could see their wallets emptied or taken offline." Limiting individual freedom: "Digital currencies could also empower the state to make it impossible to donate to a vocal NGO" Limiting or prohibiting purchases of products: Digital currency could prohibit a "purchase alcohol on a weekday. " Digital currency " is also programmable. The government could theoretically give out money that expires within a certain period of time or money that could only be used on certain items, which could be used to induce behaviour that the government is seeking." Direct interaction with individuals: "In times of crisis, they enable governments to send aid and stimulus payments directly to the smartphones of affected citizens, regardless of whether the recipients have a bank account." Forcing consumer behavior: "Digital currencies can also be tailored to specific purposes. For example, in the Chinese pilot program, money has an expiration date of a few weeks because authorities are hoping to drive consumption" References External links Today's Central Bank Digital Currencies Status Monetary reform Numismatics