Trump Bans Central Bank Digital Currencies (CBDCs) in The United States

Donald Trump Central Bank Digital Currencies (CBDCs) ban order defines CBDCs as digital money denominated in the national currency and directly issued by the central bank...

Central bank digital currencies - CBDCs are completely owned and controlled by governments.  Meaning governments would hold your wallet, your money, and have access to all of your banking information.  This would include information on every transaction in your daily life.  It’s ultimate centralization

By Collective Evolution:

President Donald Trump signed an executive order this year banning the creation and issuance of central bank digital currencies (CBDCs) in the United States.  The order defines CBDCs as digital money denominated in the national currency and directly issued by the central bank.  It prohibits any federal agency from developing, promoting, or implementing plans related to CBDCs unless required by law.  Any ongoing initiatives must be immediately terminated.

CBDCs are completely owned and controlled by governments.  Meaning governments would hold your wallet, your money, and have access to all of your banking information.  This would include information on every transaction in your daily life.  It’s ultimate centralization.

With cryptocurrencies, governments can’t track how much you have, where you spend your money, or who you give it to.  Plus they are decentralized, effectively pulling power away from central banks who have been using debt to control and enslave entire populations for decades.

With CBDCs, something governments and central banks have been pushing hard for, governments would enjoy more secrecy, and be able to control their population more than they currently do.  CBDCs would also be easier to tax, since hiding any money from the government would be impossible.

Remember, central banks ARE the problem, and have been for decades.  Crypto was created to stop this problem, yet they have gotten a bad rep because they don’t serve the interests of powerful people.

"Instead, a CBDC is something closer to being a perversion of cryptocurrency, or at least of the founding principles and protocols of cryptocurrency—a cryptofascist currency, an evil twin entered into the ledgers on Opposite Day, expressly designed to deny its users the basic ownership of their money and to install the State at the mediating center of every transaction." - Edward Snowden.

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Blogger Note: Say bye-bye to Central Bank Digital Currencies (CBDCs) and welcome to the new world of crypto currencies - Bahamas!

Crypto Will Never Replace Fiat!

Crypto will always be a transactional adjunct to both reserve and non-reserve fiat

 

- FTX boss Sam Bankman-Fried believes bitcoin has no future as a payments network, because its 'proof of work' system means it can't scale up By Zahra Tayeb - BusinessInsider -

THIS YOUNG FELLOW IS PRECISELY RIGHT FOR CURRENT AND ANCIENT ECONOMIC REASONS!

By: Professor Gilbert Morris:

This should serve as a cold shower for crypto-evangelists who have deluded themselves into thinking that crypto-money can defy the laws of supply and demand, volatility versus stability or even raise the dead…if you listen to their ignorant blatherings!

The fiat of fiats is not because it’s fiat, but because it’s legal tender and stable.

You may ascertain at type of person who sits at the back of the class without listening: because they’re the ones who compare possibilities at the margins to events at the centre-scale. Such persons respond by saying ‘well, the US dollar fluctuates…’, as if they can’t grasp the difference of a legal tender currency, that fluctuates within a band in a system that is global, compared to narrowly distributed crypto-money, fluctuating wildly in value…driven by a few “crypto-whales”, in a niche transactional vortex.

When one explains these basic, obvious points, crypto-dolts launch into incessant crypto-barking about how people - even Warren Buffett - just doesn’t understand what they understand!

Today, I found just how delusional they are, because even as this young fellow - from FTX - expressed views held by Mark Cuban, Elon Musk and Vitalik Buterin (cofounder of Ethereum) and Warren Buffet, crypto-Talibans can be heard dismissing him; suggesting that he needs to read some article they know of to gain perspective on a product he dominates!

This is their generalised reaction to statements from a person who is a market-maker for crypto, and sits at one of the world’s largest transactional nexus between crypto and fiat and transacts nearly 100 times their country’s GDP!

To the thinking person, the least interesting thing about crypto is it’s price, which is driven by a “beggar-thy-neighbour” model. The most interesting thing is the technology substrata, blockchain, where the true transactional revolution will emerge.

Distributed ledgers running as blockchain ir holochains actually reflect the ancient jurisprudence of Solon (630-560BCE), the great law giver: in that, at last - also reflecting the notion of the commonwealth of humankind advanced by Nicolas of Cusa 1401-1464).

Blockchain in its basic formulation can remake human civilisation.

This is the reason young techs in The Bahamas must grow out of the fat delusion that The Bahamas will be a “crypto-centre”: rather it’s future - if we have the resolve to innovate at scale at the pace of the market - will be in digital asset custody; built on the substrate of distributed ledgers. That means all digital assets, including NFTs, Tokens of every sort, NK contracts - and the holy grail - interactive and interoperable smart contracts will be the trillion-dollar opportunity for The Bahamas now and in the foreseeable near-future.

Crypto will always be a transactional adjunct to both reserve and non-reserve fiat and any first year economics student or statistician can witness that crypto has lost its oppositional trajectory and basically “aligned” with conventional currencies/money and does not now move opposite to it as an alternative should.

Crypto is also not like Gold; as gold is a commodity and possesses inherent or intrinsic value as a conductor of electricity for instance; necessary for advanced electronics such as both this mobile I’m using and this airplane in which I am traversing the heavens.

It has a use function and value inherent to what it is. Crypto does not.

That does not mean crypto is useless: it provides a niche payments channel and more importantly - something which most economists miss - a “savings enclave”, which has been missing outside high savings economies such as Japan. That is, crypto - as a proxy for fiat - operates like a zero interest, ‘proxy savings bond’, with the widest range of yield possibilities for cash-outs because of its volatility; driven by its frenetic value model.

It will play this double proxy role indefinitely, but will never replace fiat; although, it’s flexibility will instigate the rise of CBDC with hybrid Stable Coin features, which will lead the the true and necessary revolution: the destruction of conventional banks!

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Central Bank Digital Currency (CBDC) model is the best of the iterations of money in the financial future

WHY WE SHOULD COMMIT TO CENTRAL BANK DIGITAL CURRENCIES (CBDC) END PAPER MONEY AND CONVENTIONAL BANKING!

By Professor Gilbert Morris

Central Bank Digital Currency (CBDC) model is the best of the iterations of money in the financial future; the urgency of which has now arrived.

Four years ago, on a programme called “Essentials”, hosted by Hubert Edwards, I and my colleague - Central Bank advisor Mike Mckenzie, Malaysia - argued this point.

Here is what I contributed: CBDCs are not a panacea, but their role is far more disruptive than it seems even their adherents are willing to admit. The goal should be the absolute elimination of paper money and banks as we know them.

1. It would disintermediate banking and banks as we know them completely

2. It would recalibrate a proper equilibrium between the money supply and goods and services; whilst facilitating efficient multi currency transactions and trade finance

3. Such a platform on bespoke Blockchain could initiate in-system peer-to-peer lending and direct digital utility payments, with more comprehensive, fair and accurate regulation

4. It would require completely new standards for identity and Constitutional protection of both biological and digital identity as a new definition of human personage

5. For states whose currencies are PEGGED to the US dollar, a CBDC would allow for more disciplined aggregation and management of US dollars, since they’d be exchanged upon entry into the country for the digitised currency.

There are some critical issues which require constant monitoring and transparency:

a. Any issuance of a CBDC that runs indirectly through the traditional banking system amounts to an illegal tax; since its purpose would be to stave off conventional banking collapse; this preserving a 200 year old obsolete system that enriches the few.

b. Any conventional bank now building brick-n’-mortar buildings is developing into a false future, the urgency of which is already present and enervating.

c. For the efficient deployment of CBDCs, there would have to be free, reliable broadband, protected by bespoke - multi-redundant - power supply.

CBDCs in their development has been largely naive, thinking that the technological achievement of the CBDC is the accomplishment.

This is false: such innovations must nest in a legal and Constitutional context. As such, CBDCs require proper foundations Constitutional alignment for the following reasons:

a. The Central Bank could collect both data and metadata that would reveal every purchase, amount of purchase, location of purchase, items purchased.

b. This is both unconstitutional and would undermine democracy by robbing the citizen and any consumer of his or her right to privacy.

c. The disclosure of identities would mean governments could target specific consumers and enterprises for political reasons.

These issues are not insurmountable. Estonia has largely solved these problems - as I show in papers written two years ago - and they have done so in a manner that maximises options for broad currency digitisation, whilst enhancing Constitutional protection.

There would be benefits to data collection scrubbed by smart data analytics of all features of identity, perhaps even location: this would generate real-time real-life performance based creditworthiness; eliminating the need for ex-post 20th century backward looking credit ratings.

Moreover, the non-identifying data would produce additional benefits at scale: they would reveal patterns and flow of consumerism, accurate breakdowns of goods and services divides, provide accurate forecasting of taxes, and because of the efficiencies gained in US dollar sequestration, the management of the reserves supporting the zero-value dollar-PEG would become transparent, precise, and the reserves should see an uptick in its baseline aggregates!

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