Edward Snowden, former Central Intelligence Agency employee, discusses the future of digital currencies and the improvements he wants made to the Bitcoin infrastructure.
Creating a competitor for Bitcoin
In an interview with television producer and journalist Naomi Brockwell, Snowden says digital currencies will remain here, but central bank digital currencies (CBDCs) offer almost zero advantage over traditional fiat money.
“I think this [cryptocurrency] is inevitable. I think we’ve seen states realize that digital currencies will be the next level of money. They are now effectively trying to create competitors for Bitcoin. ”
“Central bank digital currencies are just a re-branded version of fiat currencies that don’t really have what is desired for the general public, beyond the government’s ability to distribute incentive payments more effectively.”
“I think CBDCs do not have the financial developments that many people will notice. This means they actually tax you in a new way because this incentive payment drastically reduces the value of the currency. In general, digital money does not solve the problem of crypto money, inflation and hidden taxes in general. “
Network still did not resolve some issues
Snowden notes that while Bitcoin could be a remedy for inflationary currency printing practices, the network still cannot overcome Bitcoin’s privacy and transaction volume issues.
“As you said, we know that the Bitcoin network does not support turnover, as everyone’s problem with the transition to digital currencies. Unfortunately, in its current form, the Bitcoin network does not provide the privacy protections that are really required for such transactions on a large scale. “
Snowden admits that despite Bitcoin’s flaws, it uses cryptocurrency and still prefers it to traditional credit cards.
“Bitcoin is great and awesome. I used Bitcoin before continuing to buy bitcoins. But using Bitcoin is very difficult for me, and still this is a huge improvement over credit cards.
If we are talking about off-chain transactions, if we are talking about cross-chain transactions, you know that there are many groups working on these problems. My question is why it took so long. “