Chris Curl,
Editor
June 22, 2022
Last week, Federal Reserve Chair Jerome Powell spoke about a U.S. digital dollar or what is called a central bank digital currency (CBDC).
"Looking forward, rapid changes are taking place in the global monetary system that may affect the international role of the dollar in the future. Most major economies already have or are in the process of developing instant, 24/7 payments," Powell said. "As the Fed's white paper on this topic notes, a U.S. CBDC could also potentially help maintain the dollar's international standing."
This statement comes at a time when 105 countries that represent 95% of global GDP are exploring CBDCs.
In fact, 10 countries have already launched them and 15 are currently in pilot stages.
Many people, however, fear the prospect of a digital currency controlled by central banks.
Over the last couple of years there have been a lot of conspiracy theories revolving around the World Economic Forum and their supposed plans for a Great Reset where you will “own nothing and be happy.”
It is believed by many that the entire COVID-19 pandemic and the disastrous economic fallout were engineered to take down the current financial system in a sort of controlled demolition.
As the theory goes… after the dust settles and we are all reduced to paupers… the central banks will come to the rescue with their digital currencies issued through a Universal Basic Income (UBI).
A key component of a CBDC is that it is fully programmable.
This would allow central banks to completely control the creation and distribution of money throughout the economy.
Every single transaction would be closely tracked and monitored.
And many fear that this would coincide with the creation of a social credit system. This would effectively give the central banks total control over the populace. If an individual or business fell out of line with the prevailing political orthodoxy, they could be entirely shut out of the financial system… UBI checks halted, loans cut off. In an instant.
They could also control when and where you spend your money and what you could purchase with it.
The idea of central banks having this level of control is terrifying.
And this is a large reason why Bitcoin exists as well as a myriad of other decentralized financial instruments in the world of crypto.
Gold and silver also serve as alternative hard assets to preserve wealth and economic freedom.
I’m not sure how much I buy into these conspiracy theories but anything that potentially infringes on our civil liberties should be looked at closely and met with fierce resistance when the opportunity arises.
I do think that a regulated stablecoin backed by the U.S. Dollar would be a boon to the economy as it would make international payments and transactions fast and effortless. It will be, however, contingent on the USD still existing as it does today.
In a free and open society people should have the option to use stablecoins, cash, crypto, as well as gold and silver or whatever other means of exchange they choose.
And we all should resist the efforts of central banks and governments to exert total control over our lives.
That is why I’ll always hold gold and cryptocurrencies regardless of short-term volatility.
Chris Curl
Editor, Daily Profit Cycle