Governments around the world are actively developing and implementing central bank digital currencies (CBDCs). If you consider them a harmless technological upgrade of outdated paper money, it is worth looking more closely. CBDCs potentially mean financial serfdom through a monetary panopticon, where authorities control every transaction, as Simon Cain, an analyst at Bitcoin Policy UK, believes.

Does it sound paranoid? Just listen to the words of Augustin Carstens, the head of the Bank for International Settlements – the central bank for the world's central banks. Complaining about the current inability of authorities to control cash transactions, he states: 'With CBDC, the central bank will have absolute control over the rules and norms that define the use... we will also have the technology to ensure compliance... this creates a huge difference compared to what cash is.'

How can 'absolute control' work?

CBDCs could be programmed such that you can only purchase certain goods from specific people, at certain times, within specific dates, or only in approved locations. Their validity may depend on compliance with all government policies (climate, health, social, and tax). They may be subject to maximum or minimum storage limits. They can be programmed to hinder savings and encourage 'investing' in approved stocks and bonds.

Politicians and central bank leaders may say they do not intend to implement such control measures, but such assurances are meaningless. Here is what the UK Parliament's Economic Affairs Committee states: 'Although the Governor of the Bank of England told the committee that he does not see CBDC as a way to implement monetary policy, the committee noted that his successors may not agree with this.'

The freedom to transact is a fundamental component of freedom itself. Once you lose the ability to choose what to do with your money, you are on the path to financial enslavement. How can you protect yourself?

The benefits of Bitcoin go beyond resisting financial slavery.

Bitcoin is resistant to financial enslavement. It is the most decentralized and censorship-resistant global currency that cannot be frozen, confiscated, or stopped. This is not a theory – it has already been proven in countless instances of financial repression around the world: in China, Afghanistan, and Cuba, as well as globally by organizations such as WikiLeaks in 2011 and the Bitcoin Humanitarian Alliance in 2025.

But financial slavery is not the only risk of CBDCs. The UK Economic Affairs Committee also points out: 'A centralized registry of CBDCs, which will become a critical element of national infrastructure, could become a target for attacks from hostile state and non-state actors.' Governments and public organizations are constantly subjected to hacks and data leaks, exacerbated by their ongoing mutual hacking attacks. Relying entirely on their competency regarding access to money is a terrible idea.

Bitcoin stands against institutional financial failures. And again, this is not a theory – it has already been proven. When banks fail or their systems go down, Bitcoin always remains operational, as it is the most reliable computer network in the world. For over a decade, Bitcoin has not been shut down even for a fraction of a second.

Bitcoin is fully decentralized, and there has not been a single successful hack of its blockchain during this period, despite its value being in the trillions of dollars. No other major network, whether public or private, monetary or otherwise, can come close to such reliability and resilience against physical, virtual, or political attacks.

No one is immune to digital fiat money.

CBDCs are coming to major Western economies. The European Central Bank intends to finalize its digital euro this year. Americans now have a presidential decree 'banning... CBDCs in the jurisdiction of the United States', but stablecoins could very well become state CBDCs disguised as decentralized outfits of private banks capable of performing the same functions.

The enthusiasm of the current US administration regarding stablecoins remarkably aligns with the preferred structure of CBDC proposed by the Bank for International Settlements – a 'hybrid model that allows for a division of labor between the central bank and private intermediaries.' To glimpse this future world of stablecoins acting as CBDC, one only needs to look at what the integration into the US dollar system means for the leading global stablecoin. 'We follow the laws and regulations of the US regarding freezing,' says Paolo Ardoino, CEO of Tether. 'We have engaged the FBI and US Secret Service; we work with the Justice Department almost daily, as well as with the Treasury.'

Whether it is called CBDC or not, you will soon have to submit to some form of digital fiat money – digital euros, rubles, and similar technological achievements. But currently, nothing prevents you from accessing independent 'off-system' money. Bitcoin can protect against monetary serfdom and shield from failures of financial institutions, as it represents a truly decentralized tool for maintaining economic independence.