Digital currencies were all the rage a few years back. Bitcoin being the most well-known, the number of cyber coins has exploded to over 9,000 to date.
Cyber coins have not gone unnoticed by the governments of the world, the U.S. being no exception.
When cyber coins took off, you can bet it was only a matter of time before Washington wanted in and that time has arrived.
The idea of a currency in cyber space has its good and bad points for governments. Being in cyber space and accessible anywhere there is a computer terminal, the government can’t control cyber coin nor issue it. Not issuing it means they can’t print and then spend it, because they don’t control it, which could eventually handcuff their deficit spending. And for a country that finances a good portion of their programs and expenses by deficit spending, it would be an untenable situation.
Enter the CBDC, known as the Central Bank Digital Currency. A newsletter I read jokingly called them “Biden Bucks”. Unfairly squaring off on the President, Biden did not originate the idea nor is at fault or credit for its arrival. In fact its idea has been in the government’s crosshairs for years since cyber coins made their arrival.
The difference between cyber coin and CBDC is that the government version is a credit from the Federal Reserve Bank of the United States.
This month, an updated government white paper called “Exploring a U.S. CBDC” of which originally came out in 2020, was released. This is one of 114 CBDC studies the government has previously undertaken. One could say they are moving along on a digital government currency quite nicely.
Another name for the CBDC is the “Alternative Payment System”.
The word alternative to me spells replacement and frankly, that scares the hell out of me.
Quoting the government paper, one paragraph in particular tells the story:
“It is imperative that the U.S. government consider ways to maintaining the use of the dollar in digital global payment systems and develop a strategy related to the use of alternative payment systems”.
Pay particular attention to the sentence:
“Maintaining the use of the dollar”
The conspiracy theorists suggest we substitute the word controlling for maintaining, and you get “controlling the use of the U.S. dollar.
We may have just been told the master plan in a nutshell.
Unlike a dollar, personal check, credit card, cyber-coin or any other current form of payment which is autonomous from the government’s immediate control or scrutiny except under reason of warrant, the CBDC would be directly, immediately and forever under the control of the U.S. government.
Ponder that thought for a moment. Its ramifications are more than frightening.
Let’s journey into the weeds shall we?
With your money in control by the government, say the wrong thing and you could be locked out of your bank account.
Protest against the wrong policy and you could find yourself without the ability to buy anything.
Suddenly and without warning your E-wallet won’t work and you’re given an 800 number to call. Please hold, you’re caller number 5,000.
Support the wrong candidate or the opponent of an incumbent?
Your E-wallet with your CBDC access is locked. You can’t buy food for your family.
Get an erroneous past due tax bill from the IRS?
Your E-wallet with your CBDC access is locked. You can’t pay the power bill and your heat is shut off.
Try to get gas and find out your registration is overdue or you’ve used too much fuel this week?
You can’t buy gas and now you are stuck at night on a country road in the middle of nowhere, or perhaps your wife and kids are.
Think it can’t happen where a government shuts off your cash because you don’t see things the way they do?
It already has:
The Government of Canada froze the bank accounts of truckers who participated in peaceful public protests over border crossing rights during COVID.
I think you get the picture.
The CBDC should scare the hell out of you too.
“Watching the markets so you don’t have to”