Read the passage and determine the author's primary concern:
"The development of Central Bank Digital Currencies (CBDCs) promises programmable fiscal transfers and reduced settlement friction. Yet without robust architectural privacy safeguards, a state-controlled digital currency provides authoritarian regimes with unprecedented granular surveillance over private citizen expenditure and financial autonomy."
The author's primary concern is that CBDCs could:
Answer and explanation
Correct answer: D. enable governments to conduct invasive financial surveillance
- Step 1: Examine the warning: the author cautions that without privacy safeguards, CBDCs give states 'unprecedented granular surveillance over private citizen expenditure and financial autonomy'.
- Step 2: The primary risk highlighted is invasive government financial monitoring and loss of civil privacy.
Answer
enable governments to conduct invasive financial surveillance.
Why not the others: 'cause immediate hyperinflation across all domestic markets' is unmentioned and unrelated to CBDC architecture; 'render all electronic digital banking transactions impossible' contradicts the programmable digital nature of CBDCs; 'permanently increase the operational cost of consumer retail' contradicts the promise of reduced settlement friction.
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