Perplexity ai’s response to the same question:

“When explaining why CBDCs (Central Bank Digital Currencies) are a terrible idea, it's important to consider the arguments made by skeptics and critics. Here are some compelling arguments against CBDCs:

1. Less Anonymity: One of the key advantages of cryptocurrencies like Bitcoin is the increased level of anonymity they offer. With CBDCs, transactions would be traceable and subject to surveillance by central banks and governments

2. Loss of Privacy: CBDCs could lead to a loss of personal privacy as governments would have access to detailed financial information about individuals and businesses

3.Financial Discrimination: Critics argue that governments could use CBDCs as tools of financial discrimination, potentially excluding certain individuals or groups from accessing financial services

4. Data Breaches: The implementation of CBDCs introduces the risk of data breaches, which could compromise sensitive financial information

5. Destabilization of Financial Institutions: The introduction of CBDCs could potentially destabilize traditional financial institutions, as individuals may choose to shift their deposits from private banks to accounts backed by the central bank

6. Increased Censorship: CBDCs could enable increased censorship, as governments would have the ability to control and monitor transactions

7. Patchy Monetary Policies: The implementation of CBDCs could lead to patchy monetary policies, potentially impacting economic stability and financial systems

It's important to note that these arguments against CBDCs are not universally agreed upon, and there are also arguments in favor of CBDCs, such as increased financial inclusion and improved efficiency. However, these are some of the concerns raised by critics of CBDCs.”