Unveiling the Conspiracy: Is the Government Pushing CBDCs to Undermine Crypto?

jhunike567
Dec 6, 2025
2 min read

Cryptocurrencies have faced increasing scrutiny from regulators, especially the U.S. Securities and Exchange Commission (SEC). At the same time, central banks worldwide are accelerating efforts to launch Central Bank Digital Currencies (CBDCs). Some believe these trends are connected by a hidden agenda: governments may be promoting CBDCs to weaken decentralized cryptocurrencies. This post explores the theory behind this conspiracy and what it means for the future of digital money.

Eye-level view of a digital currency coin placed on a financial document — Digital currency coin on financial report

What Are CBDCs and Why Do Governments Want Them?

CBDCs are digital forms of a country’s official currency, issued and controlled by the central bank. Unlike cryptocurrencies such as Bitcoin or Ethereum, CBDCs are centralized and fully regulated. Governments argue CBDCs offer benefits like faster payments, reduced costs, and better financial inclusion.

However, critics worry CBDCs could give governments unprecedented control over money flows and personal data. Unlike decentralized cryptocurrencies, CBDCs can be programmed to restrict transactions or freeze accounts. This level of control raises concerns about privacy and financial freedom.

The SEC’s Role in Crypto Crackdowns

The SEC has increased enforcement actions against crypto projects, targeting initial coin offerings (ICOs), exchanges, and tokens it considers securities. These crackdowns often result in fines, shutdowns, or legal battles that slow down crypto innovation.

Some observers see the SEC’s aggressive stance as part of a broader strategy to protect traditional financial systems and pave the way for CBDCs. By labeling many cryptocurrencies as securities, the SEC limits their growth and adoption, making CBDCs appear as a safer, government-backed alternative.

How CBDCs Could Undermine Crypto

Centralized Control: CBDCs give governments full control over digital money, unlike decentralized cryptocurrencies that operate on open networks.
Regulatory Advantage: CBDCs comply with existing financial laws, making them easier to integrate into the current system.
Reduced Demand for Crypto: If CBDCs offer similar convenience with less risk, users might prefer them over volatile cryptocurrencies.
Surveillance Potential: CBDCs could track every transaction, discouraging the use of anonymous cryptocurrencies.

These factors suggest CBDCs could gradually replace cryptocurrencies in everyday use, especially if governments continue to restrict crypto through regulatory pressure.