Global CBDC Developments Highlight Transatlantic Divide in Financial Technology

According to Cointelegraph, the global push for central bank digital currencies (CBDCs) is raising concerns about increased control over the money supply and personal savings by financial institutions. This development is accentuating the divide between the United States and Europe in terms of financial technology. CBDCs are digital representations of fiat currency issued on a permissioned, private blockchain, typically managed by a central bank, contrasting with decentralized blockchain networks. Susie Violet Ward, a financial analyst and CEO of Bitcoin Policy UK, cautioned that CBDCs could represent the "weaponization of money in its purest form." During Cointelegraph’s Chain Reaction daily X spaces show, Ward expressed concerns that this programmable form of money could lead to heightened central bank control over individual spending, potentially including an "expiry date" on personal savings. She remarked, "They'll be able to control everything you do through money," drawing parallels to George Orwell’s dystopian novel, 1984, which depicts a world dominated by an oppressive central government. The transatlantic divide is becoming more pronounced as Europe advances with its digital euro initiatives, while the United States focuses on stablecoin innovation and has banned the creation of CBDCs. Recently, the U.S. House of Representatives included a provision in a defense policy bill for the 2026 fiscal year that prohibits the Federal Reserve from issuing a CBDC. This provision aims to prevent the Fed from offering digital currencies or financial services directly to individuals. A similar bill, the Anti-CBDC Surveillance State Act, passed in July with a narrow majority and is awaiting a Senate vote. U.S. President Donald Trump signed an executive order on January 23, 2025, banning the establishment, issuance, circulation, or use of CBDCs, citing concerns over their potential impact on financial system stability, individual privacy, and national sovereignty. Meanwhile, the European Union is moving forward with its digital euro plans, reportedly considering major public blockchains like Ethereum for its CBDC, rather than a private blockchain, to ensure data accessibility to authorized entities. European Central Bank President Christine Lagarde announced that the digital euro is expected to launch in October 2025, emphasizing that it will coexist with cash and include privacy protections to mitigate concerns about government overreach. While CBDCs are lauded for their potential to enhance financial inclusion, critics have voiced apprehensions regarding their surveillance capabilities. In Brazil, the central bank's CBDC pilot revealed embedded surveillance and control mechanisms, allowing the bank to freeze or reduce user funds within CBDC wallets.