Pros of CBDCs Over Cash:

Convenience: CBDCs can be used for online transactions, making them more convenient than physical cash. They can be easily stored and used for purchases without the need for physical exchange.

Safety: CBDCs can be more secure than physical cash because they are digital and can be encrypted and authenticated to prevent fraud, counterfeiting and loss.

Increased transparency: CBDCs can increase transparency by providing a clear and traceable record of transactions, which can help prevent fraud and money laundering.

Cons of CBDCs:

Regulatory uncertainty: The regulatory landscape for CBDCs is still evolving, and it is not yet clear how they will be regulated or how they will interact with existing financial systems.

Potential loss of privacy: CBDCs can be tracked and traced, raising concerns about privacy and the potential for abuse by governments or other authoritative parties.

Technological risks: CBDCs rely on complex technology, and there is a risk that they could be hacked or otherwise compromised.

Potential loss of control: CBDCs are issued and controlled by central banks, and there is a risk that they could be used to exert more control over the financial system and individual financial transactions.

Censorship: Many argue that those who are perceived as dissidents may potentially lose their access to their CBDCs, which would create a stifling environment for liberty.

Central bank control: CBDCs give central banks more control over the money supply and can help them better manage monetary policy.

CBDCs offer a range of potential benefits, including increased accessibility, improved financial inclusion, and increased efficiency. However, they also come with a number of challenges, including regulatory uncertainty, potential loss of privacy, and technological risks. It is important for governments and central banks to carefully consider these pros and cons as they explore the potential of CBDCs.