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5 MIN READ

Bitcoin vs.
CBDCs.

Central Bank Digital Currencies are government-issued digital money. They sound modern and efficient. In practice, they represent the most complete financial surveillance infrastructure ever built.

READING TIME: 7 MIN

IN PLAIN ENGLISH

A CBDC is like cash, except the government can see every purchase you make, limit what you spend it on, set an expiry date so you're forced to spend it, or turn it off entirely. Bitcoin is the opposite: nobody controls it, nobody can freeze it, and nobody can see who owns what unless you choose to tell them.

Property Bitcoin βœ“ CBDC βœ—
SUPPLY Fixed 21M, enforced by code Set by central bank, unlimited
SURVEILLANCE Pseudonymous address, not your name Every transaction visible to government
PROGRAMMABILITY You decide how and when to spend Gov can restrict or expire your funds
SEIZURE Self-custody = physically unseizable Remote freeze, no court order needed
CENSORSHIP Permissionless: no one can block you Transactions can be denied outright
CUSTODY Your keys, your coins: full control Always held by issuing authority

China's digital yuan (e-CNY) has piloted programmable features including expiration dates on specific issued tokens, tested in consumption-stimulus pilots in cities such as Suzhou starting in late 2020.[1] . The ECB's digital euro design documents include programmability, transaction monitoring, and per-holding caps by design.[2] This is not hypothetical. It is published.

CANADA 2022

The Canadian government invoked the Emergencies Act on February 14, 2022, revoked February 23.[3] Under the emergency economic measures order, financial institutions were directed to freeze accounts "associated with" the convoy protests without court orders, using disclosure from the RCMP. Accounts of donors identified from the GiveSendGo leak were frozen alongside protest organizers.[4] . If your political views can get your savings frozen, you don't truly own your money.

ARGENTINA 2020s

Annual inflation reached 211% in December 2023 per INDEC, the highest since 1990.[5] Argentines converted pesos to Bitcoin and dollar-pegged stablecoins as a survival strategy, not speculation. .

LEBANON 2020s

The Lebanese banking system collapsed in 2019-2020. Depositors were locked out of dollar accounts as banks imposed informal capital controls; the World Bank estimated losses and dollar deposit haircuts in the tens of billions, and described the crisis as among the worst globally since the mid-19th century.[6]

NIGERIA 2021–2023

Nigeria launched the eNaira CBDC in October 2021 and later capped ATM cash withdrawals at NGN 20,000 per day (roughly $45) to push adoption.[7] Citizens responded by hoarding cash and adopting Bitcoin peer-to-peer at record rates. The government's attempt to control money accelerated the opt-out.

TURKEY 2021–2024

The Turkish lira lost the majority of its value between 2021 and 2024 as the central bank held rates artificially low; official inflation exceeded 80% year-over-year at its peak in late 2022.[8] Bitcoin and dollar-pegged stablecoins became the dominant savings tools for ordinary Turks trying to preserve their purchasing power. .

EU DIGITAL EURO

The European Central Bank completed its digital euro "investigation phase" in October 2023 and moved to a "preparation phase" running 2024-2025. The European Commission tabled a legislative proposal in June 2023; formal legislative adoption is still pending as of 2026.[2] . Design documents specify programmability, per-transaction limits, holding caps, and full transaction monitoring. The ECB calls these features. Privacy advocates call them control infrastructure.

WHAT THE BIS IS ACTUALLY BUILDING

The Bank for International Settlements (BIS) is the "central bank for central banks." Its Innovation Hub coordinates CBDC research across its member central banks, and publishes the projects it runs with them. Known projects include mBridge (cross-border multi-CBDC settlement with the central banks of China, Hong Kong, Thailand, the UAE, and Saudi Arabia), Tourbillon (retail CBDC with cash-like privacy properties), Sela (access-model retail CBDC with Israel and Hong Kong), Dunbar (wholesale multi-CBDC with Australia, Malaysia, Singapore, South Africa), Jura (wholesale euro and Swiss franc cross-border), and Helvetia (wholesale CBDC integrated with the Swiss SIX settlement system).[9] .

mBridge is the one to watch. It is the furthest along operationally, and it is explicitly designed for cross-border settlement between participating central banks without touching the US dollar correspondent-banking rails that run through SWIFT and the New York Fed. That is not an accidental feature. BIS leadership publicly framed mBridge at various points as a neutral technical platform; at the same time, member central banks have described it in their own statements as a way to reduce dependency on existing systems.[10]

Read across the projects, the BIS research reveals what central banks actually intend to build: programmable retail tokens, wholesale cross-border settlement that bypasses existing US-dollar rails, identity and compliance hard-wired into the protocol layer, and a thin "privacy" veneer that is opt-in, capped, and revocable. None of the published projects contemplate fixed supply, self-custody, or permissionless access. For a holder deciding whether the problem this site describes is already solved by more efficient fiat rails, BIS research is the best primary source for what the alternative on offer looks like.

Sources & Citations
  1. People's Bank of China, "Progress of Research & Development of E-CNY in China" (July 2021) - pbc.gov.cn whitepaper; Wall Street Journal and Financial Times reporting on Suzhou expiration-date pilots, 2020-2021
  2. European Central Bank, "A digital euro" project pages and progress reports - ecb.europa.eu/euro/digital_euro
  3. Government of Canada, "Declaration of a Public Order Emergency" under the Emergencies Act, February 14, 2022 (revoked February 23, 2022) - laws-lois.justice.gc.ca
  4. Emergency Economic Measures Order (SOR/2022-22) and reporting from The Globe and Mail, CBC, and the Public Order Emergency Commission (Rouleau Commission) final report
  5. Instituto Nacional de Estadistica y Censos (INDEC), Argentina CPI release December 2023 - indec.gob.ar
  6. World Bank, "Lebanon Economic Monitor" series characterizing the 2019-2021 crisis - worldbank.org/lebanon
  7. Central Bank of Nigeria, eNaira launch materials and subsequent cash withdrawal circulars (2022-2023) - cbn.gov.ng
  8. Turkish Statistical Institute (TUIK), consumer price index releases 2021-2024 - tuik.gov.tr
  9. BIS Innovation Hub, project pages for mBridge, Tourbillon, Sela, Dunbar, Jura, and Helvetia - bis.org/innovation_hub
  10. BIS, "Project mBridge: experimenting with a multi-CBDC platform for cross-border payments" (October 2022) - bis.org/publ/othp59

Last updated 2026-04-14. Not financial advice. Do your own research.

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