Arthur Hayes, one of the industry’s best-known crypto and trading veterans who is also a co-founder of the BitMEX exchange, has given his thoughts on what he thinks will happen to Bitcoin if the majority of Central Bank Digital Currencies (CBDCs) are finally thrown out.

According to a press release, Hayes has called the CBDC “pure evil.” His point of view is based on the notion that the CBDC will give the government full influence over changing legislation related to numerous issues, such as the use of Bitcoin.

He claimed that CBDCs directly infringe on the right of people to fair trade autonomy with each other. He went on to say that the CBDC will affect banks by posing an existential threat to their ability to conduct business.

He also stated that he believes the government will be able to quickly replace fiat currency with CBDC due to the indifference of the population, bringing a financial surveillance nightmare. However, he hinted that domestic commercial banks may strangely act as accomplices in preventing the government from establishing the best CBDC architecture to suffocate the population.

Hayes also underscored that the government is trying to use CBDCs to combat economic inflation, but claims that doing so could harm the general population by harming the blockchain industry. According to him, the inflation that will soon be felt will be significantly different from what the economy has seen in the last 50 years, so he simply hopes that the use of CBDCs will be successful.

The dominance of CBDCs as an instrument of commerce

A CBDC is a type of legally recognized digital currency, also known as “digital cash”. It is fundamental money, just like real money, and the responsibility of the central bank.

Many countries have started testing the use of CBDC by using it to make payments for goods and services. For example, the Canadian government has started consultations on how to use the CBDC. Deputy Prime Minister Chrystia Freeland recently issued a government statement focused on digital assets and currencies and their use around the world.

Furthermore, it has been reported that the Central Bank of the United Arab Emirates (CBUAE) wholesale CBDC pilot program is now complete.

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