The Federal Reserve is sowing the seeds for its central bank digital currency (CBDC). It may seem that the purpose of a CBDC is to facilitate transactions and enhance economic activity, but CBDCs are mainly about more government control over individuals. If a CBDC were implemented, the central bank would have access to all transactions in addition to being capable of freezing accounts.
It may seem dystopian—something that only totalitarian governments would do—but there have been recent cases of asset freezing in Canada and Brazil. Moreover, a CBDC would give the government the power to determine how much a person can spend, establish expiration dates for deposits, and even penalize people who saved money.
The war on cash is also a reason why governments want to implement CBDCs. The end of cash would mean less privacy for individuals and would allow central banks to maintain a monetary policy of negative interest rates with greater ease (since individuals would be unable to withdraw money commercial banks to avoid losses).
Once the CBDC arrives, instead of a deposit being a commercial bank’s liability, a deposit would be the central bank’s liability.
In 2020, China launched a digital yuan pilot program. As mentioned by Seeking Alpha, China wants to implement a CBDC because “this would give [the government] a remarkable amount of information about what consumers are spending their money on.”
After Feds many inflation, and other blunders made as reputed, if now designed to work against the interest of the population and in favor of a tiny elite's interest, this should be deemed Unconstitutional, IMO!
ReplyDeleteForget advancing technology to compromise freedoms by an Agency with little obvious oversight used properly on them; Restructuring therefore is needed with this power hungry Agency, and other known Agencies that no longer serve wisely the population, IMO! Problem being Feds are both Government and Privately ran, right? Absolute Power Corrupts rings true as Article's contents informative info indicates IMO; Who in their right minds want, nor cares to ever model China, a Communist Dictatorships Country? How utterly grossly insane & evil one might add, right?
Insanity is making the same failures as another country has shown us, we the people, IMO! Orwellian tactic's being imposed leads to a nothing burger, the masses voices would be null & void, so pray, pray, pray! Privacy, Freedoms, Rights, Laws, Keeping GOD in the big picture, matter! Behind the curtain are all those little minds running a show that no one wants to see, IMO! It's only in their minds wired to work in ways the population don't need; Western Civilization does not need to be a technology experiment just because. Lights, camera, action, and people can turn it off.
JFK tried to bypass the central bank in 1963 by issuing debt free US notes (backed by silver) in lieu of debt ridden Federal Reserve notes (backed by nothing). No doubt a factor costing him his life.
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