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Bitcoin (BTC<\/a>) holders looking to avoid Central Bank Digital Currencies (CBDCs) may have gained a surprise ally \u2014 banks.<\/p>\n In his latest blog post, \u201cPure Evil<\/a>,\u201d Arthur Hayes, ex-CEO of crypto derivatives platform BitMEX, argued that banks may limit the impact of the CBDC \u201chorror story.\u201d<\/p>\n CBDCs are currently in various stages of development worldwide. <\/p>\n Fans of financial sovereignty naturally fear and even despise them, as they imply<\/a> total government control over everyone\u2019s money and purchasing power \u2014 \u201ca full-frontal assault on our ability to have sovereignty over honest transactions between ourselves,\u201d says Hayes.<\/p>\n Among opponents of CBDCs are not only Bitcoiners, however. Sharing the cause will likely be the commercial banks they have sought to oust from power with BTC.<\/p>\n \u201cI believe that the apathy of the majority will allow governments to easily take away our physical cash and replace it with CBDCs, ushering in a utopia (or dystopia) of financial surveillance,\u201d the blog post explains. <\/p>\n \u201cBut, we have an unlikely ally that I believe will impede the government\u2019s ability to implement the most effective CBDC architecture for controlling the general populace \u2014 and that ally is the domestic commercial banks.\u201d<\/p><\/blockquote>\n In implementing a CBDC, a government could either make the central bank the only \u201cnode\u201d in the digital network, or use commercial banks as nodes in a less radical overhaul of the financial system. These systems Hayes calls the Direct Model and Wholesale Model, respectively.<\/p>\n \u201cGiven that every country that has at least reached the \u2018choosing a CBDC model\u2019 stage has opted for the Wholesale Model, it\u2019s clear that no central bank wants to bankrupt their domestic commercial banks,\u201d he reasons.<\/p>\n As such, to \u201cplacate\u201d banks to a certain extent but still achieve benefits such as eradicating cash, governments may ultimately be kept in check by the kind of entities known for limiting<\/a> crypto exchange transactions and banning<\/a> hodlers\u2019 accounts.<\/p>\n \u201cFor politicians who care more for power than profits, this is their chance to completely destroy the influence of Too Big to Fail banks \u2014 and yet, they seem to remain politically unable to do so,\u201d Hayes adds.<\/p>\n The topic of CBDCs receives extensive attention, even beyond the crypto industry, as they represent a major shift in both money and politics.<\/p>\n Related:\u00a0CBDCs are no threat to crypto \u2014 Binance CEO<\/a><\/em><\/strong><\/p>\nHayes: Bitcoiners and banks stand against CBDC “dystopia”<\/h2>\n
“Capital controls are coming”<\/h2>\n