June 1, 2023 10:11AM 

# Krugman Misses the Mark on CBDCs—Again 

By [Norbert J. Michel](https://www.cato.org/people/norbert-michel) and [Nicholas Anthony](https://www.cato.org/people/nicholas-anthony) 

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This April [Forbes column](https://www.forbes.com/sites/digital-assets/2023/04/18/cbdcs-are-bigger-than-politics/?sh=45ea354d1085) describes why central bank digital currencies (CBDCs) are a fundamental issue related to Americans’ freedom and much bigger than just politics. It argues that New York Times columnist Paul Krugman, famous for [being wrong](https://www.crowdfundinsider.com/2023/05/207967-economist-paul-krugman-criticizes-governor-ron-desantis-opposition-to-central-bank-digital-currency-cbdc/) about [the Internet](https://web.archive.org/web/19980610100009/http:/www.redherring.com/mag/issue55/economics.html), was wrong for claiming presidential hopeful Ron DeSantis was merely playing politics with CBDCs.

Nonetheless, Krugman has [doubled down](https://www.crowdfundinsider.com/2023/05/207967-economist-paul-krugman-criticizes-governor-ron-desantis-opposition-to-central-bank-digital-currency-cbdc/). As [Crowdfund Insider](https://www.crowdfundinsider.com/2023/05/207967-economist-paul-krugman-criticizes-governor-ron-desantis-opposition-to-central-bank-digital-currency-cbdc/) explains, now he’s taken to [Twitter](https://twitter.com/paulkrugman/status/1662131678209359873?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1662131678209359873%7Ctwgr%5Ef554d25f21f9a4fe92aa537e0d54c7d88aa6c697%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.crowdfundinsider.com%2F2023%2F05%2F207967-economist-paul-krugman-criticizes-governor-ron-desantis-opposition-to-central-bank-digital-currency-cbdc%2F) to re-promote his original opinion piece *and* to liken DeSantis’s warnings about CBDCs to former presidential candidate Rick Santorum’s [fight against](https://www.politico.com/story/2012/01/7-year-old-attack-on-weather-service-could-cloud-santorums-campaign-071129) the National Weather Service.

Contrary to Krugman’s framing, DeSantis’s claims about the risks of CBDCs have merit. As the Forbes piece [demonstrated](https://www.forbes.com/sites/digital-assets/2023/04/18/cbdcs-are-bigger-than-politics/?sh=45ea354d1085), proponents of CBDCs, even some government officials who would be in charge of implementing CBDCs, have openly discussed using CBDCs for exactly the purposes DeSantis claimed. (Nick and I have a [longer list here](https://www.cato.org/study/risks-of-cbdcs).)

A CBDC is *not* “just another form of money,” as some of its supporters have claimed. A fully implemented CBDC is a complete government takeover of money and payments. As the experience in China and [Nigeria](https://www.cato.org/blog/nigerias-cbdc-was-not-chosen-it-was-forced) have shown, the introduction of a CBDC comes with the removal of people’s freedom to choose their methods of payment.

CBDCs mark a fundamental threat to both economic and political freedom. But it should surprise no one that Krugman is wrong on this issue.

##### Related Tags 

[Banking and Finance](https://www.cato.org/banking-finance), [Monetary Policy](https://www.cato.org/monetary-policy), [Center for Monetary and Financial Alternatives](https://www.cato.org/center-monetary-financial-alternatives) 

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