This decade may change the world of economics forever. The end of paper money is quickly approaching, because of the central bankers, and at the behest of the central bankers. Everyone, in every country, but more so in the Western culture, will have to make a choice on how to move forward, economically. Will the people most affected make the right choices in the coming years? Will they get the truth, the real information that they need to make the best decisions, going forward? Let’s take a preliminary look at what a national cryptocurrency might do in the future.
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David Andolfatto is Vice President of Research at the Federal Reserve Bank of St. Louis and a professor of Economics at Simon Fraser University. He began looking into the Bitcoin idea back in early 2014 and began speaking on it publicly for The Federal Reserve on March 31st, 2014. The video below outlines the FedCoin concept, and how it would be manipulated to work at scale, at least for the interests of the issuing bodies themselves.
Now, if these were the random ramblings of a digital currency fan who just happened to work for The Federal Reserve, that could be easily dismissed. Yet, I reported on this topic almost a year ago. It goes much farther and deeper than just one macroeconomist at the St. Louis Fed pontificating. IBM and the Federal Reserve have had talks about building a U.S. Dollar-based digital currency, and IBM has talked to other nations about this idea, as well. Every year, the smoke signals get bigger and darker.
News on this front is also coming from the Far East, where meetings have recently taken place in China. The People’s Bank of China has been seriously discussing the option of a national cryptocurrency with banking interests like Deloitte, Citibank and others just last month.
According to the translation of the PBOC’s official website release on the meeting, China would like to “set up clear strategic objectives for digital currencies issued by the central bank, and develop key technologies and applications aimed at an early launch of a digital currency issued by the central bank.”
Other countries have gotten into the action. As DCE Brief reported last year, the African country of Tunisia has already begun putting a version of their national currency on a blockchain, so this is not a fleeting idea, but is under serious consideration in markets, worldwide.
This will eventually become the norm; the only question is how soon this will come about because the advantages of killing off cash are legion for any nation. Plus, all of the benefits for governments and banks would hurt citizens in the short or long run, making it a win-win when it comes to a national power grab. Every financial transaction can be tracked by banks, government, or both.
The list starts with all details of any financial transactions can be tracked, taxed, and cataloged by the banks, governments, or both. Without physical cash as an option, who would stop banks from negative interest rates? Banks have would have zero checks and balances since banking customers could not execute “a run on the banks” when, not if, they become insolvent. Think ATM fees are high now?
Complete financial control of every citizen would be seized by the banks, and their partners in crime, the government, if cash or options like Bitcoin were no longer available. And every Bitcoin exchange is being geared for AML/KYC government regulations. Why? Bitcoin has been proven to not be a terrorist or criminal threat by Britain’s HM Treasury’s report last year. It’s all about control, not your safety. The rules of the game are changing, and as usual, the banks are the ones writing them. Works out great for them. For you, not so much.
This is why I left banking in 2011. I’ve been in the belly of the beast and I know how it operates, so that’s why I’m on this side of the fence. Bitcoin is probably the last chance for “The People” to control their own economic sovereignty. If you want to “Fight the Power”, Bitcoin might be the proletariat’s last shot before cash is officially wiped out. All of your financial options and information are going to be consolidated into a few corporate options over the next decade or so.
That is their end game. What’s yours? Something to keep in mind when these “innovations” like moving from cash to national e-cash come calling. Will you buy in? Will you read the fine print? It may not be this year or next, but that day is coming when choices will have to be made, by citizens of every nation, on how much control banks have over your life and finances.
Will you have the wherewithal to be able to choose a financial freedom for yourself? Many can’t see the forest through the trees. I’m here to tell you that the economic forest you’re in is on fire, and you should be smelling the smoke by now. Get your affairs in order. Start preparing now for what comes next. The “innovations” set to come your way will cost more than you can ever imagine.
"Give me control of a nation's money and I care not who makes its laws" — Mayer Amschel Bauer Rothschild