⚠️ HRF CBDC ⛓️🪙 alert from HRF for Croatia (29-DEC-2023)

🗝️ℹ️ (Key Information)

CBDC Status: Research

CBDC Launch: n/a

CBDC Model: n/a

CBDC Issued: n/a

Inflation Rate: 10.78%

One-Sentence Summary:

"Croatian National Bank discusses potential CBDC, concluding that due to certain risks and costs, it is not currently feasible; concerns include existing high corruption levels and possible privacy invasions."

✅ The Croatian National Bank is examining the prospects for a Central Bank Digital Currency (CBDC), but uncertainties persist, and it remains unsure whether its benefits can outweigh potential risks and costs.🇭🇷

✅ In their current economic and strategic ecosystem, especially considering the significant role of cash, launching a digital kuna (CBDC) isn't justified for Croatia just yet.

✅ Scoring 84/100 in the 2023 Freedom in the World report, corruption remains a substantial issue in Croatia, inducing potential complications in the issuance or adoption of a CBDC.

✅ However, it remains arguable if the Croatian government could exploit a CBDC since the European Central Bank on behalf of the EU would provide it.

✅ Some advancements have been made, but official corruption inclusive of bribery, fraud, nepotism, and patronage persist as a potent problem in Croatia.

✅ The prevalence of corruption raises doubts about promises made by the government to limit surveillance, control, or other risks associated with CBDCs and its role in developing policies that might favor political interests.

✅ Various reports by Amnesty International, Freedom House, Financial Tyranny Index, Human Rights Watch, the U.S. Department of State, and Privacy International highlight concerns over human rights and civil liberties violations.

✅ Cato Institute's report titled "The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths" provide insights into the risks tied with CBDCs.

#CroatianNationalBank #CBDC #HumanRightsFoundation #EU #CentralBankDigitalCurrency #CorruptionInTheEU

Question: Given the persistence of corruption in nations like Croatia🇭🇷, do you believe the introduction of a Central Bank Digital Currency (CBDC) might exacerbate these issues or offer a pathway to resolution? What are your thoughts on balancing monetary innovation with the potential risks?

Disclaimer: This is an AI-generated summary of the original text from HRF, forigve fuck-ups plox. If you find it useful, ⚡ the Tracker Bot because the AI and Cloud bits are not free to run.