There is a storm brewing that is going to hit like a ton of bricks. It is designed to strike a fatal blow into cryptocurrency.
Make no mistake, the present political and government environment is not bringing friends to the table. Any benefits offered come at great expense.
We can see how politicized everything is. As bad as some think the monetary system is now, a CBDC would make it orders of magnitude worse. Anything promoted as beneficial will quickly turn dystopian.
Of course, the commercial banking system would be made obsolete. Again, some might think this good but be careful what you wish for.
Source
Centralized Money
We all saw the memes on Twitter. People espousing how the USD is put out by one organization. This shows how little people understand about even the most basics of money.
he USD is not created by the Fed. Instead, the money supply is expanded when commercial banks make loans. This is how money is put into the economy. It is the basis of fractional reserve bank lending. For this reason, any commercial bank can "print money".
Central Bank Digital Currencies (CBDCs) will bypass this entire process. Under this scenario, taken to the extreme, is a situation where the government (read politicians and bureaucrats) are in full control of the money. This is not a cryptocurrency operating on a permissionless network.
What we are looking at is a centralized system where all transactions can be monitored and, if deemed, reversed. Accounts can be shut down for any reason they determine necessary. They will say this is to fight money laundering or terrorism but we know this is just a ruse.
Money will become extremely politicized. Whatever way the winds are blowing, we will see their "enemies" attacked. Think of how certain viewpoints are not allowed on Twitter or Facebook. Now, extend that concept out to the place where the ones holding those viewpoints are not allowed to have money.
Stablecoin Attack
The focus upon stablecoins is not a mistake. A CBDC is an ideal alternative from the government's perspective.
One reason why stablecoins became so popular, at least temporarily, is because they are able to serve a need overlooked by the cryptocurrency industry.
Since most cryptocurrency is speculation, people were hesitant to utilize it for payment. Why used BTC today when it will be worth 5 times as much in a year? This is a hard mindset to break.
Stablecoins alleviate this since they are not meant to be speculated upon. Instead, the goal is to remove as much volatility as possible. This is why pegging it to the USD made a lot of sense. To start, it is a unit of account that is known. At the same time, it has inherent stability that is not found in other assets.
Of course, this is a challenge to the existing power structure. For that reason, a case could be made that the focus upon stablecoins and it being a threat to the stability of the financial system is not coincidence.
By the way, anyone with an ounce of sense would realize that an asset class with a total value of $125B or so is NOT a threat to the financial system at all. We are dealing with something that is worth hundreds of trillions of dollars. This amount is nothing more than a rounding error.
Economic Collapse
If a CBDC were implemented that pushed people to deposit their money with the central bank, then the commercial banking system would lose their funding. The ability to make loans comes from deposits.
In a situation where loans are drying up since there is not the deposit base, the cost of borrowing would increase. This is simply how banks have to operate.
Where this makes an impact is upon small businesses, which government have already obliterated with their policies. If the cost of lending from commercial banks increases, more businesses will be excluded. This will favor the larger institutions who have the clout to garner political favors.
Without commercial bank lending, large aspect of the economy will go unfunded. This means the only opinion, in those sectors, is economic contraction.
Unfortunately, it is easy to see this spread across large portions of the economy as the incompetence of the political and bureaucratic establishment rises to the top.
How They Will Sell It
Naturally, to get this through they will have to sell it. This is done with catchy names along with the stressing of benefits.
For example, they like to talk about the unbanked. Their talking points will include giving everyone access to the banking (monitoring) system. Of course, the braindead who watch the mainstream news will swallow this up.
They will also promote the idea of doing "airdrops" when the economy gets bad. Streamlining the payment process when economic upheaval arises is a good selling point. Certainly, a case could be made that increased efficiency at a lower cost is a good thing.
However, we cannot overlook the fact that even this pales in comparison to the negatives (interest rate) of a CBDC.
Can This Backfire?
There is a chance that all of this backfires, especially if it takes years to implement. We discuss the need for truly decentralized systems. Having infrastructure that is out of reach of the governments and central banks is a crucial first step.
With networks like that in place, we can develop around it. If the governments have to "compete", they are going to be in trouble. They key for their plans is to get it implemented before people truly realize what it is all about. Right now, most cannot tell the difference between cryptocurrency and CBDCs. To the general public, it is all the same.
Of course, we know it is not. Cryptocurrency is an alternative to the establishment, both the present system as well as the one they are looking to construct.
Much of what we have in cryptocurrency at the moment is controllable. If that is the case, then it can be destroyed. Here is where taking a sound approach of spreading things out along with building value enters the picture.
While this battle appears to be playing out in the political realm, it is actually taking place with the developers. It is a race to see who can bring enough to market to overwhelm the other one.
Any delays only work to the advantage of cryptocurrency. While the bear market is taking place, development continues. We have to get the political establishment fighting amongst themselves.
In the meantime, lines of code are being laid down. This is exactly what we need.
CBDCs are a Trojan Horse. No matter how they are framed as a gift, the enemy is lurking within them.
Spread the word about the dangers of this. It will not end well for the general population.
If you found this article informative, please give an upvote and rehive.
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Been saying it for years but sadly a majority just don't get it or don't care until it's too late and then sit there wondering what happened. Crypto is seriously one of the last lines of defense people have to have some type of freedoms left. It's about the only thing keeping governments in check.
agreed, when we are talking about true-crypto-privacy-currencies (for Freedom)… not “surveillance-coins” (for further enslavement).
Absolutely.
If they get a hold of the monetary system, it is done. Politicians will crush all hope for the average person.
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Check this out https://www.federalreserve.gov/monetarypolicy/reservereq.htm Apparently there is no longer even fractional reserve lending. They can just lend out to kingdom come. They may as well have already turned the banking system into a cbdc based on infinite supply.
Yeah the Fed did that because banks havent been lending. Bank lending is flat since the GFC.
Banks arent going to lend into economic headwinds. They are also stifled by Dodd-Frank act.
That is the problem with commercial banks responsible for expanding the money supply, they will not do it in bad times.
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not all “crypto-currencies” are equal… in their cryptographic technology, nor fungibility! BTC, ETH, and the like are “surveillance-coins”, which THE beast SYSTEM has already shown that IT can confiscate / devalue (by classifying as “tainted” = unfungible) and, is even supporting/promoting.
i believe, THE beast SYSTEM’s support of surveillance-coins is “the bait-and-switch”, IT is using to bring in mass-adoption of “crypto” in general. next, IT will espouse support for “privacy-coins”… probably XMR and/or ZEC… before, causing the masses to distrust even those… to ultimately herd all into CBDCs!
even the OG of “privacy-coins” (coins with so strong cryptography that they are private by default at the protocol-level), XMR, has shown certain vulnerabilities! those crypto-enthusiasts who know better, know to DYOR (do your own re-search) of the tech that underpins each coin/token.
don’t believe the marketing of any coin. salesmen are paid to lie, and it is perfectly legal (although not Lawful) for them to do so. afterall, that which is “legal” (of THE beast SYSTEM) is the undoing of God’s Law (of that which is “true”)!
HUSH, currently possesses the highest anonymity setting (anonset) of all crypto-currencies. with an anonset rating of over 1 million and growing exponentially daily… it appears to be the most anonymous coin currently available.
“Anonymity – Keeping your identity private, but not your actions. For example, using a pseudonym to post messages to a social media platform.
Privacy – Keeping some things to yourself, which can include your actions. For example, messaging friends privately so they know who sent the message, but only they can read it.”
Very well said. At first I had wondered "why is Task preaching to the choir" so to speak, but now I realize this article can be spread among the public, and maybe reach quite a few "non-crypto" people right now.
We need a name for "non-crypto people" and while NCP sounds good, it's maybe too close the the NPC name for the political "useful idiot wokesters" but both groups have maybe a 95% overlap anyway 🤣🤣🤣
Yeah at times I write stuff to spread around. Hopefully some of the articles end up on social media and in front of some people.
We never know where some of this stuff ends up.
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"We need a name for "non-crypto people" -- How about "muggles"? In Harry Potter lore, that makes us crypto folk the magical people. :)
I LOVE IT!!!
My Dad, who woulda been 85 this August, was a YUGE Harry Potter Fan!!!
He owned all the books and all the movies, and was ready to loan them out to any grandkids who wanted to watch!!!
MUGGLES are non-crypto people 🤣🤣
!CTP
Ok, your screen name...
You are a Fraulein who is into materials and such?
I'm using the name no-coiner, maybe it was picked up from a meme but stuck with me.
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no-coiner is us being discriminating. I hate the term
I take it even the banks don't see the long term effect of this mess? Sounds like a dream come true for the politicians!
They proved they are totally incompetent with fiscal policy and now they want monetary.
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No doubt they'll figure out a way to get even richer at our expense, and retire somewhere far away...
!PIZZA
The one challenge with a CBDC is that all they do becomes transparent.
So expect a second tier system where their privacy is maintained.
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Their privacy, yes... But not ours. We need to pray that this future never happens.
CBDC’s are the nuclear bomb to freedom and our ways of life for sure. Look what they did in Canada to the truckers and extend that out to the entire world. It’s fucked for sure and one thing I have spoken about with people here and there in real life about the absolute dangers of this shit. Hopefully we can delay it long enough for it to fail!
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Yeah. It is crucial to resist them and educate people on how they are nothing more than surveillance mechanisms.
They simply put too much power in the hands of politicians and bureaucrats.
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always politics and bureaucrats looking for a way to shake hands with our money but against Cryptocurrencies they will not be able to since we will defend ourselves to protect the advances we have achieved
We hope that we will step up to defend ourselves. For that, we need numbers.
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I sure can relate to this article . Few months ago the ECB governor referred crypto as being insignificant . So I find it appalling when they are trying to build a digital currency such as the CBDC . If this ain’t hypocrisy then what do we call this ?!
A CBDC is not crypto so not really. They are threatened by crypto but a CBDC gives them power. Actually, in my view, it hands the power to politicians and bureaucrats.
It is a poison pill if you will.
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Mhmm 🤔
Very nice post, thanks. One aspect of CBC's hasn't been addressed yet by most people. The fact that CBDC's would force total transparency upon us.
Banks and others will be able to profile ANYONE with the simple click of a mouse. Your spending habits, your preferred food basically everything any anything you do every day with your money. And Grandma can forget about putting 20$ into an envelope for the grandkids without having paid her dues on it.
CBDC's are bad no matter from which angle we look at them but yes, the ultimate financial control and "money reigns the world and he who controls the money, controls the crowd"
I dont think most banks survive a CBDC. There is really no reason for them. If everyone is handed an account at the Fed, why do they need to go through the commercial banking system.
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To function as intermediate for loans, mortgages and anything else debt related and of course CBDC transactions, cards and co wont be free to use. The Central Bank is only interesting in controlling the money and the interest rates. They don't want to deal with "the crowd"
I think another detriment is that the central bank could cut people off the system. It's going to be dangerous and I don't like CBDCs either.
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More like politicians.
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If you haven't seen catherine austin fitt's information on the Going Direct Reset, i highly recommend taking a look: https://goingdirect.solari.com/summary-going-direct-reset/
The stimulus done in the US during covid was a trial balloon for this.
Wow! I !LUV that kind of talk, concern for the "unbanked" and finally with CBDC, their version of "inclusivism" will now have a realistic implementation. People who swallow this kind of talk despite the notoriety of the track record of politicians and bureaucrats to the contrary really baffle me.
The fight among politicians causing delay is advantageous on our part. How about the battle among coders? Do you see any possibility of developers being politicized? Or is it already happening?
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@taskmaster4450, @rzc24-nftbbg(1/1) sent you LUV.
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Yes I do believe it is and will happen. They will threaten these developers, especially the lead in these projects. For example, can Hoskinson stand up to the Department of Homeland Security when it comes knocking and accuses Cardano of being used by terrorists (or whatever they claim)?
He will crumble under the threat of do what they want or live in a hole for a few years.
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Yeah, and that's what I've been telling also some of my friends who are curious about cryptocurrency. Most of them are like Cardano. They are really not as decentralized as they claim to be.
Not only CBDCs are our enemy. The current governments and administrations are likewise. 🤔
Oddly we keep electing (old) politicians who don't act in the interest of the people. Maybe it's time to change our governance models? After all, in a democratic world it's our given right, right? Oh right, democracy is broken too...
The majority of society seems to think the current conditions are good. Well, they should. However, I'm out of it and live by my own rules. It's worked like a charm for more than twenty years. By the time anyone notices, I'm already too old to be sucked dry. 😁
I like you! You seem to be LIVING YOUR life same as I do and have done for pretty much more than twenty years too. It feels good to be free right?
Yes that is the obvious part so it is correct. They are the enemy and CBDCs are their weapon. However it is not going to work out well for us.
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It is working out and has worked out for me for now 10 years in this space. cryptocurrenices are here to stay because they make perfect sense. The only thing that is still slowing this space down is slow brains and "fear mongering" by "them".
"if you invest in cryptocurrencies be prepared to lose all your money" - LaGarde, ECB
Well at least I can sell my crypto at any time for monopoly money. I cannot control the €'s inflation rate, banking and commission surge in 2022 and the ECB from raising the interest rate for the first time in 11 years in July (which will further surge fees, commissions and yes, the surge of food and gasoline prices in the EU.
I rather go broke in crypto than letting Banks take what I have for no other reason than stealing from me because "war, inflation, solidarity".
Powell said they’ll be ready in 2023. It’s completed. Boston Fed has worked on it since 2015. It’s ready and waiting. It would not shock me to see a rollout within 18 months
The update for FedNow will roll out on 2023, not a CBDC. That doesnt mean they have not one ready to go just that it is not on its way as of this moment.
Many believe the FedNow upgrade is a CBDC, it is not.
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Gotcha, indeed it being ready to go doesn’t mean they will put it out on this timeline. I just know it’s been worked on since 2015 at Boston Fed in particular under name “ Project Hamilton“ and some old school bitcoin people were hired by Fed and involved since 2015. so it’s clearly legit report that’s it’s ready to go 7 years later. Ultra centralized fascist coin would be a better name frankly. What timeline do you see for CBDC? I don’t think it’s as far off as most think. Project Hamilton of all names also, Its right in our faces.
Cheers 🍻
The central bank and the commercial ones would always have a tendency to grasp total control over the citizens who manipulate the valus put at the financial systems.
But only the crypto and decentralization tokens can create a broader impact of independent and free floating money, as the freedom is larger than the conventional ones.
The commercial banks will end up being victims in this. With FedCoin, there is little use for the commercial banking system.
They will be eliminated, almost instantly.
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Was just wondering where I could get some of that. Asking for a friend.
Send me 10 HBD and I will overnight it to you.
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A trojan horse is the perfect description for CBDCs!
When I was writing about it, the idea seemed to fit well.
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@taskmaster4450
Sir, I am very worried that many people have become frustrated due to cryptocurrency rape. I am optimistic that the next generation will rely on cryptocurrency and that each platform will return to its original position and be even better than before. I've been in the cryptocurrency world for the last six months and for the first time in six months I've seen the price of Bitcoin go down.
The long term development should carry us to new highs.
We can look at what is being built while a lot of the garbage is being cleared out.
But CBDCs are dangerous animals. We have to certainly offset that.
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i have bought bitcoin and have the same mindset of keeping it but I really hate banks so I am thinking of using a stable coin but the problem in not everybody accepts that as payment so i have to convert it to USD
There are still a lot of issues with infrastructure.
Over time we will fill it in.
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There is a lot to be done in sharing decentralized cryptocurrency to the masses, unfortunately some of us with basic knowledge tend to extort from those with no clue what is cryptocurrency let alone CBDC.
Clearly every plan government comes up with is not in the favor of it's people, having people imprisoned in every form of life is always the primary objective and some of us think we are free.
If only we can take time to study cryptocurrency and embrace it rather than focusing on the financial side of it alone...
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It is imperative for us to build around what they are doing. We know what their goal is. No doubt they want to take even more control about us.
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This is becoming serious the government always have their way of enslaving us politics every where
After the vaccine passport, which is now being used to imprison people in China, this is another step in the extreme surveillance of the population.
We are going to have to fight back in a large way.
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Hmmmm this is becoming serious and we are getting out of it by God grace @taskmaster4450le
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. Keep up the fantastic work
Especially the government.
There wasn't much mentioned about the stables in mainstream media even before Luna crash. People outside crypto don't know about the possibilities of stable coins.
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Thank you for this concise and very informative overview, @taskmaster4450 - I will share it with friends and family, as it helps a lot to bridge what the conventional media manipulates us to feel about crypto - and what crypto CAN be, if we consciously work with it to create the kind of currency reality, aligned with true and natural values, that has the potential to support our flourishing.
Blessings and gratitude.