When the peer-to-peer decentralized cryptocurrency, bitcoin, experienced its ascension, governments and central banks warned about the dangers of fraud, scams, and other illicit activities in the world of virtual currencies. But the angst politicians and bureaucrats felt vanished almost instantly, turning them into bobby-soxers of e-cash over the possibility of cross-border control, from surveillance to taxation. The establishment is now embracing the digital currency technology – but is it to facilitate innovation or as another method of enslavement. Crypto was perhaps a liberty-oriented dream, but now it appears that it is a statist-driven nightmare of imprisoning the world.
Forget it, Jake. It’s statism.
ECB’s Gotta Hunch on You
The European Central Bank (ECB) could soon digitize the euro. ECB head Christine Lagarde revealed that she has a “hunch" that the eurozone could soon adopt an electronic currency within two to four years, allowing the euro to join a myriad of other nations in either installing a digital currency or in the beginning stages manufacturing one.
“My hunch is that it will come,” Lagarde recently stated during a virtual panel discussion hosted by the ECB. “If it’s cheaper, faster, more secure for the users then we should explore it. If it’s going to contribute to a better monetary sovereignty, a better autonomy for the euro area, I think we should explore it.”
The ECB is ostensibly in the infancy period of going all-in on an e-euro. The central bank issued a noteworthy report on the issue in October, titled "Report on a Digital Euro." It also launched a public consultation. Lagarde's colleagues seem to agree that the eurozone should not be left behind, particularly as major economies and large corporations start installing P2P payment systems.
But why is electronic money attractive and beneficial? Consider this, a Bank for International Settlements (BIS) study highlighted that the use of card payments in the euro area is about 20%. While it does pale in comparison to the 32% in the United States and 45% in the United Kingdom who routinely tap, insert, and swipe, card usage has embarked upon an upward trajectory. So, is the ECB catering to demand, or is it trying to artificially inflate the public’s desire so everyone can go digital?
At the same time, Lagarde addressed the same risks that economies could face in implementing an e-currency. One of them is that consumers might ditch the conventional banking system during crises or economic downturns and allocate their assets in the central bank since the institution cannot go bust. But industry observers say that times of panic may not be enough to nudge depositors into a frenzy and place all their confidence in Lagarde.
China and Friends
Sweden is the pioneer of digital currency. But there is one nation that is accelerating the prevalence of electronic money: China.
Last month, the People's Bank of China (PBoC) launched an experiment to understand digital money's popularity, usage, and efficacy. The latest assessment suggested that the pilot program processed more than $300 million in transactions. Interestingly enough, the central bank has already uncovered counterfeit wallets of the digital yuan, leaving experts wondering if this could be the primary challenge once a virtual yuan is more widespread over the next 18 months.
Why would China become gung-ho about e-money? For one thing, the Communist Party maintains a comprehensive police state, so it is an effective method of monitoring and tracking the population through digital money. However, the official statement from authorities is that they wish to boost retail payments and advance the yuan to global reserve status. While policymakers concede that the yuan will not surpass the U.S. dollar anytime soon, this is part of the broader de-dollarization initiative.
This must mean that the Federal Reserve is in the process of digitizing the greenback. The Eccles Building has presented mixed messaging when it comes to adopting a digital dollar. Fed Chair Jerome Powell revealed that the central bank had not made a final decision on a virtual currency. However, his colleagues appear to think an e-dollar must be in the works, including Robert Kaplan, the head of the Fed Bank of Dallas. He recently averred that it is critical to begin work on developing a digital currency.
A recent Fed study concluded that 80% of central banks are considering instituting a digital currency. Judging by the comments and policy papers from the Bank of Canada (BoC), the Bank of England (BoE), and the Reserve Bank of Australia (RBA), the findings are accurate. Society now plays the waiting game.
Digitizing the Great Reset
It is only a matter of time before central bank digital currencies (CBDCs) become common in the marketplace. The technology behind the concept is impressive, so leave it to the state to find ways to exploit it for its own gain, whether it is to surveil the public or have greater control over the population. The war on cash has been waged for close to a decade now, and globalist policymakers have been stimulating their little gray cells to find ways to abolish cash and go digital. What better way to advance this objective than by putting together a CBDC in the middle of a public health crisis and taking advantage of the steady decline in the ubiquitous of physical cash? On the surface, it might seem like a benign endeavor, but The Great Reset has exposed that the globalists are never willing to let a crisis go to waste on any front.
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