Opinion by: Simon Cain, contributor at Bitcoin Policy UK

Most jurisdictions globally are researching, developing or implementing retail central bank digital currencies (CBDCs). If you see these as harmless move-with-the-times digital updates of old-fashioned paper money, look again. CBDCs potentially mean financial serfdom via a monetary panopticon where the authorities closely control every transaction. 

If you think this sounds paranoid, just consider the words of Augustin Carstens, head of the Bank for International Settlements — the central bank for the world’s central banks. Lamenting the authorities’ current inability to control cash transactions, he says that with a CBDC, a “central bank will have absolute control on the rules and regulations that will determine use… also we will have the technology to enforce that.. that makes a huge difference with respect to what cash is.”

How “absolute control” might work

CBDCs could be programmed so you can only buy certain things from certain people, at certain times, within specific dates, or only in approved locations. Their validity could depend on compliance with all government policies (climate, medical, social, and tax). They could be subject to maximum or minimum holding limits. They could be programmed to discourage saving and encourage ‘investing’ in approved shares and bonds (such as the new EU ‘SIU’ initiative or in line with UK financial industry lobbying and ‘research’). 

Politicians and central bankers may say they do not intend to implement any such controls, but such assurances are worthless. To quote the UK Parliament’s own Economic Affairs Committee, “while the Governor of the Bank of England told the committee that he did not see a CBDC as a way to implement monetary policy, the committee noted that his successors may disagree”.

Freedom to transact is fundamental to freedom itself. Once you can no longer choose what you do with your money, you’re on the road to monetary serfdom. How can you defend yourself? 

Bitcoin fixes more than monetary serfdom 

Bitcoin fights financial subjugation. Because it’s the world’s most decentralized and censorship-resistant money, Bitcoin held in self-custody cannot be frozen or confiscated, and its transactions cannot be stopped. This isn’t theoretical. It has already been proven in countless cases of financial repression all over the world, whether in Russia and Ukraine, Afghanistan and Cuba, or globally by organizations from WikiLeaks in 2011 to the Bitcoin Humanitarian Alliance in 2025. 

Recent: Is Bitcoin’s future in circular economies or national reserves?

But financial serfdom isn’t the only risk with CBDCs. The UK’s Economic Affairs Committee also points out that “a centralized CBDC ledger, which would be a critical piece of national infrastructure, could be a target for attack from hostile state and non-state actors.” Governments and public entities are always being hacked and leaking data, which they exacerbate by constantly hacking each other. Having your access to money entirely dependent on their competence is a terrible idea. 

Bitcoin fights financial institutional failure. And again, this isn’t theoretical — it has also already been proven. When banks fail, or their systems go down, Bitcoin always remains up and running because it is the world’s most reliable computer network. For well over a decade, Bitcoin has not been down for even a fraction of a second. 

Bitcoin is ultra-decentralized, and there have been zero successful hacks of the Bitcoin ledger itself during that period, despite its worth being in the trillions of dollars. Public or private, monetary or otherwise, no other large network can come close to this reliability and resistance to physical, virtual or political attack.

Nowhere is immune from digital fiat 

CBDCs look to be coming to the major Western economies. The European Central Bank is set to complete preparations for its ‘digital euro’ CBDC this year. Americans may now have a presidential order “prohibiting… a CBDC within the jurisdiction of the United States,” but stablecoins look set to become government CBDCs disguised in decentralized private-bank clothing, able to perform the same functions. 

The current US administration’s enthusiasm for stablecoins is remarkably aligned with the favored CBDC framework of the BIS, “a hybrid model which allows the division of labor between the central bank and private intermediaries.” For a peek into this potential stablecoin-as-CBDC world, just look at what being embedded in the US dollar system already means for the world’s leading stablecoin. “We follow US laws and regulations when it comes to freezing,” says Paolo Ardoino, CEO of Tether, which doesn’t even operate inside the United States. “We have on-boarded the FBI and US secret services; we work with the Department of Justice almost daily and the Treasury.”

Whether it’s called a CBDC or not, you’ll likely soon be subjected to some form of digital fiat. But, at present, there’s nothing to stop you from accessing some self-sovereign ‘outside-the-system’ money. As permissionless peer-to-peer digital cash, Bitcoin can defend against monetary serfdom and protect from the failures of financial institutions. And, in its own sly roundabout way, it is the best and only truly decentralized tool for doing so.

Opinion by: Simon Cain, contributor at Bitcoin Policy UK.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Crypto exchange OKX’s CEO for its Middle East and North Africa (MENA) arm urged the industry to focus on delivering real-world utility as interest in real-world asset (RWA) tokenization accelerates. 

In a Cointelegraph interview at the Token20249 event in Dubai, OKX MENA CEO Rifad Mahasneh warned that while tokenization is promising, projects must “clearly demonstrate” the benefits of tokenizing specific assets. 

“In some cases, we’re tokenizing things that don’t need tokenization, but in some cases, we’re tokenizing things that actually give you real, everyday value, right? And if you can see that everyday value, then that is a promising project,” Mahasneh told Cointelegraph.

He said hype can drive project growth in the Web3 space, but providing everyday value should be the priority. 

OKX MENA CEO Rifad Mahasneh at the Token2049 media lounge. Source: Cointelegraph

RWA tokenization gains traction in the UAE

Mahasneh’s comments come amid an increase in real-world asset tokenization projects in the Middle East, including the United Arab Emirates.

On May 1, MultiBank Group signed a $3 billion RWA agreement with the UAE-based real-estate firm MAG and blockchain infrastructure provider Mavryk — the largest RWA initiative worldwide to date. 

In addition to billions in RWA deals, the UAE government has started working on RWA tokenization. On March 19, the Dubai Land Department — the government agency responsible for promoting, organizing and registering real estate in Dubai — announced a pilot phase of its real-estate tokenization project. The agency is working with Dubai’s Virtual Assets Regulatory Authority (VARA), the emirate’s crypto regulator. 

On Jan. 9, RWA project Mantra also signed a $1 billion deal with Damac Group to tokenize the assets of the UAE-based conglomerate. However, months later, Mantra saw one of the biggest token collapses in crypto history, wiping out billions in market capitalization on April 13. 

Mahasneh told Cointelegraph that the region’s clear regulations help drive bigger institutions to get into tokenization and crypto. He said regulatory clarity allows understanding of how key players in the space, like exchanges, are governed. 

Related: Real estate not the best asset for RWA tokenization — Michael Sonnenshein

UAE stablecoin framework gives institutions confidence

The executive also praised the region’s progress in stablecoin regulations. In June 2024, the Central Bank of the UAE approved a regulatory framework for stablecoin licensing. This clarified the issuance, supervision and licensing of dirham-backed payment tokens. 

According to Mahasneh, this demonstrates the UAE’s speed in regulating crypto-related technologies. The executive also highlighted that the central bank’s involvement gives institutions extra confidence in entering the business. 

“Other markets are still debating whether they should have crypto regulations. Here, we moved into developing stablecoin regulations. For an investor, you want to know that your stablecoin is regulated. That’s a big plus,” Mahasneh said.

Since then, major players like Tether have joined the race by issuing a dirham-pegged stablecoin. On April 29, institutions like Abu Dhabi’s sovereign wealth fund, the Abu Dhabi Developmental Holding Company (ADQ), First Abu Dhabi Bank and the International Holding Company partnered to launch a dirham-pegged stablecoin, pending regulatory approval. 

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Efforts to pass crypto legislation in the US Senate face mounting resistance amid growing ethical concerns around US President Donald Trump’s ties to crypto.

In a May 5 letter to the US Office of Government Ethics, Senators Elizabeth Warren and Jeff Merkley said that Trump and his family stand to personally profit from an investment involving UAE state-backed firm MGX, crypto exchange Binance and World Liberty Financial (WLFI).

The senators called for an urgent probe, warning the deal may violate the US Constitution’s Emoluments Clause and federal bribery statutes.

At the center of the controversy is WLFI’s USD1 stablecoin, reportedly chosen for a $2 billion investment MGX plans to make into Binance.

The senators said the transaction amounts to a potential backdoor for foreign influence and self-enrichment, with Trump’s allies allegedly set to receive hundreds of millions of dollars:

“This deal raises the troubling prospect that the Trump and Witkoff families could expand the use of their stablecoin as an avenue to profit from foreign corruption.”

Further raising ethics concerns, Trump hosted a $1.5 million-per-plate dinner on May 5 at his golf club in Sterling, Virginia. The event came just days after hosting a $1 million-per-plate fundraiser for the MAGA Inc. super PAC.

He also plans to hold a gala dinner with major Official Trump (TRUMP) memecoin holders on May 22 despite multiple US lawmakers expressing concern over the initiative.

Source: Elizabeth Warren

Related: America’s crypto renaissance is already failing; but we can fix it

GENIUS Act faces roadblocks

Trump family’s controversial $2 billion crypto deal comes as the Senate prepares to vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and other crypto-related bills.

The fallout is already being felt in Congress. Some Democratic lawmakers are pushing for additional hearings before advancing any legislation, while others question whether Trump’s personal stake in digital assets is undermining bipartisan support for crypto regulation.

On May 5, Senate Majority Leader John Thune signaled a willingness to amend the GOP-backed stablecoin legislation to pass the bill in the coming weeks.

Speaking to reporters, Thune said changes can be made on the floor and that he is waiting to hear what Democrats are asking for, per a report from Politico.

Internal GOP challenges also remain, with Senator Rand Paul expressing uncertainty about backing the bill, according to the report.

The stalling isn’t limited to the Senate. House Financial Services Committee Ranking Member Maxine Waters plans to block a Republican-led event discussing digital assets on May 6.

The hearing, “American Innovation and the Future of Digital Assets,” is expected to discuss the new crypto markets draft discussion paper pitched by Thompson, Hill, and other committee members.

Related: Elizabeth Warren joins call for probe of Trump over crypto tokens

Crypto community slams political pushback

Prominent crypto figures are speaking out as political resistance threatens to derail stablecoin legislation in the US Senate.

“Elizabeth Warren and Chuck Schumer haven’t learned their lesson,” Tyler Winklevoss, co-founder of Gemini, posted on X.

“If they want Democrats to continue losing elections, they will continue standing in front of crypto legislation like the stablecoin bill which they are stalling out in the Senate.”

Source: Tyler Winklevoss

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions