Tag: digital currency

Replacing Cash With Digital Dollar Would Pose A Grave Threat To Our Rights and Freedoms

The Bank of Canada has made no secret of its efforts to explore a Central Bank Digital Currency (CBDC), a “digital dollar” issued and controlled by the central bank. The Bank of Canada is not alone. To date, 134 countries and currency unions have explored a CBDC, and 66 countries are already in advanced stages of implementation.

In 2023, cash accounted for a mere 11 percent of total payments made by Canadians. Consumers increasingly tap their credit and debit cards at checkouts, send e-transfers, or use online banking to pay bills, make investments, and donate to charities. For many Canadians, metal coins function less like a currency and more like a locker or shopping cart token; paper bills are for birthday cards, not for “serious” transactions. New legislation in Quebec empowers law enforcement to presume that cash sums of $2,000 or more are the proceeds of unlawful activity.

While most consumers seem to appreciate the convenience of an increasingly digital economy, a CBDC is a radical change from using credit cards and online banking apps. A CBDC would likely lead to a cashless economy, in which all financial transactions can be monitored and controlled by government. A cashless economy would create severe hardship for people who are homeless, technologically illiterate, or without ready access to the internet.

For Canadians who look after their finances electronically, cash remains essential to protect their rights and freedoms, including their privacy, security, and autonomy. In a cashless economy, all transactions are digital, subject to surveillance, and ultimately subject to government control. CBDC opens the door for governments to reward or penalize Canadians for their personal choices on how to live, where to go, and what to do with their own money.

Governments can use CBDC to restrict when, where, and what people are allowed to buy, leading to a level of control resembling communist China’s notorious “social credit” system. China uses “social credit” to reward citizens who support the Communist Party and its rules and policies. Those who criticize the Party can find themselves unable to board a train, plane, or subway, denied a bank loan, or prevented from enrolling their children in the best schools and universities.

Cash means privacy and confidentiality.

Keep reading

Congressional Hearing Reveals Stablecoins And CBDCs Share The Same Financial Control Risks

A congressional hearing on digital currencies rarely makes headlines. Yet, this week’s debate over stablecoins and central bank digital currencies (CBDCs) revealed more than technical disagreements; it exposed deeper anxiety about financial power, privacy, and control in an increasingly digital world.

The conversation unfolded along predictable lines. Those skeptical of CBDCs warned of creeping surveillance and government overreach. Advocates, meanwhile, framed it as a necessity, a matter of American competitiveness in a world where China and Europe are already moving ahead. Yet what emerged, almost inadvertently, was a realization that the supposedly safer alternative, privately issued stablecoins, carries many of the same risks.

While CBDC opponents championed stablecoins as the free-market alternative, testimony from industry leaders revealed that stablecoins — despite their branding as decentralized, private-sector solutions — already carry many of the same risks. The ability to freeze assets, enforce government mandates, and track transactions is a present reality, especially when combined with Know Your Customer (KYC) laws which eradicate privacy.

The core argument against CBDCs is simple: they give the federal government unprecedented control over personal finances. Randall Guynn, Chairman of the Financial Institutions Group at Davis Polk & Wardwell, issued a stark warning.

“A CBDC would give the Federal Reserve staff a direct window into virtually every transaction every person in America makes,” he said. “And at least one of them won’t be able to resist the temptation to use that information to promote what they consider to be worthy political goals.”

His comments echoed a broader concern: a US CBDC could function as a financial surveillance tool, much like China’s digital yuan. In China, authorities can track purchases in real-time and even restrict how certain funds are spent. Many fear the US government could use a CBDC to implement similar controls — whether to enforce political objectives, regulate behavior, or even deplatform individuals from the financial system.

Keep reading

Christine Lagarde: We are getting ready to make the digital euro a reality in October

The ECB has been working on the digital euro for over five years. It is currently in the “preparation phase” which started in November 2023. The launch of the digital euro is the next phase, which involves the actual rollout of the digital euro across the EU member states.

“The deadline for us [to make the digital euro a reality] is going to be October 2025 and we are getting ready for that deadline,” Lagarde said during a press conference on 6 March.

“But,” she added, “we will not be able to move unless the other parties, the stakeholders as I call them – [European] Commission, Council and Parliament – actually complete the legislative process, without which we will not be able to move.”

Keep reading

Digital Currency Leads Us by the Hand Down the Primrose Path to Slavery

The decay of values, the decline of crafts, of art, of literature, and, above all, of intellectual inquiry in the United States leaves us facing a wasteland wherein money is the only sentient beast, demanding due worship by all.

This horrific change was accompanied by the hollowing out of the economy. We went from agriculture in which there is a clear relationship between labor, product, and the moral and physical wellbeing of the family, to manufacturing in which production was cut off from daily life and monopolized by global capital, to a consumption and the service economy which is mediated by computers, creating online platforms controlled behind the curtains by unaccountable multinational technological monopolies.

And now, in the last stage of the decay of the angel, we are encouraged to welcome as a sign of advancement the replacements of humans with robots, drones, and AI systems. Citizens have no role in this alien economy and we can only feed our families by engaging in some banal activity at a tremendous distance from family and neighbors, and then bringing back the dollars so earned to purchase products sold retail by multinational corporations.

Keep reading

IMF Offers a Glimpse at the Perils of Central Bank Digital Currencies

With Bitcoin climbing over $100,000, both investors and government officials are taking a closer look at digital money. The problem is that there’s a huge difference between an independent currency designed to resist surveillance and control, and one crafted by a central bank to enable exactly that. A new handbook from the International Monetary Fund embraces the potential of cryptocurrency while highlighting the dangers inherent in state dominance of the means of storing and exchanging value.

The IMF handbook’s opening chapter discusses how central bank digital currencies (CBDC) could keep government financial institutions relevant. “With digitalization and falling cash usage in parts of the world,” the authors write, “central banks are considering CBDC to ensure a fundamental anchor of trust in the monetary system.” Also discussed is the potential for CBDCs to “potentially help lower barriers to financial inclusion in countries with underdeveloped financial systems,” to “channel government payments directly to households,” and “to help reduce frictions in cross-border payments.”

Keep reading

Michigan Bill Would Take First Steps Against A CBDC

A bill filed in the Michigan House would take the first steps toward limiting the impact of any potential future central bank digital currency (CBDC) in the state.

House Bill 6147 (HB6147) would prohibit a state governmental agency or any political subdivision from accepting a payment using central bank digital currency. It would also bar the same from advocating for or supporting any test of a central bank digital currency.

HB6147 is similar to a law passed in Alabama in 2023 and in Indiana, South Dakota, North Carolina and Georgia in 2024.

IN PRACTICE

In the spirit of James Madison’s blueprint in Federalist #46, the enactment of HB6147 would create “impediments” to the implementation of a CBDC in Michigan. Madison said “a refusal to cooperate with officers of the union” along with “the embarrassments created by legislative devices,” would “oppose, in any State, difficulties not to be despised.”

Other states have also taken steps to block the use of CBDCs. Indiana, Florida, South Dakota, Tennessee, and Utah have enacted laws that ban the use of a central bank digital currency (CBDC) as money in the state.

How such legislation will play out in practice against a CBDC, should the federal government attempt to implement one, is unknown.

Opponents of the legislation generally take the position that states can’t do anything to stop a CBDC, since – according to their view – under the supremacy clause “any federal law on this point will automatically override state law.”

We’ve heard this song and dance on other issues before.

In the ramp-up to the 1996 vote on Proposition 215 in California, voters were repeatedly told that legalization of marijuana, even for limited medical purposes, was a fruitless effort, since, under the supremacy clause, any such state law would be automatically overridden by the Controlled Substances Act of 1970 (CSA). At best, opponents told Californians, the state would end up in a costly, and losing court effort.

But despite those warnings, Californians voted yes, setting in motion the massive state-level movement we see today, where a growing majority of states have legalized what the federal government prohibits. Ultimately, the federal government will likely have to back down, even if just to save face, because it has become impossible to fully enforce its federal prohibition over this massive state and individual resistance.

A similar scenario played out in response to the REAL ID Act of 2005. The national ID system still isn’t fully up and running more than 17 years after the “final deadline” for full implementation.

Why not?

Keep reading

Central Bank Digital Currency (CBDC) Projects Are Foundering in Five-Eye Nations. What Gives?

Canada and Australia shelve plans for retail CBDCs while the US could soon become the first country to explicitly ban the central bank from issuing a CBDC.   

As we warned in May 2022, a financial revolution is quietly sweeping the world (or at least trying to) that has the potential to reconfigure the very nature of money, making it programmable, far more surveillable and centrally controlled. To quote Washington DC-based blogger and analyst NS Lyons, “if not deliberately and carefully constrained in advance by law,… CBDCs have the potential to become even more than a technocratic central planner’s dream. They could represent the single greatest expansion of totalitarian power in history.”

At the time of writing that post, around 90 countries and currency unions were in the process of exploring a CBDC, according to the Atlantic Council’s CBDC tracker. Today, just two and a half years later, that number has increased to 134, representing 98% of global GDP. Around 66 of those countries are in the advanced stage of exploration—development, pilot, or launch.

But they do not include the United States. In fact, the US is not just trailing most countries on CBDC development; it could soon become the first country to explicitly ban the central bank from issuing a CBDC, to the undisguised horror of certain think tanks.

“CBDC Anti-Surveillance State Act.”

In May, the US House of Representatives passed HR 5403, also known as the “CBDC Anti-Surveillance State Act.” The bill, first introduced in September 2023 and sponsored by US Senator Ted Cruz, proposes amendments to the Federal Reserve Act to prohibit the US Federal Reserve from issuing CBDCs. It also seeks to protect the right to financial privacy and prevent the U.S. government from “weaponizing their financial system against their own citizens.”

If passed, HR 5403 will prevent the Fed from:

  1. Offering products or services directly to individuals.
  2. Maintaining accounts on behalf of individuals.
  3. Issuing a central bank digital currency or any digital asset that is substantially similar under any other name or label directly to an individual.

To become law, the bill still needs to clear the Senate, which is by not means guaranteed. But it is likely to receive added impetus from a new Trump administration, assuming Trump wins the election and isn’t assassinated before taking office or thwarted by a colour revolution, as Lambert posited yesterday. In January, Trump announced, to thunderous applause, at a New Hampshire that as president, he would “never allow the creation of a central bank digital currency.” Such a currency, he said, “would give a federal government, our federal government, absolute control over your money.”

Even a Kamala Harris administration is unlikely to fast-track a digital dollar, with progress set to continue to lag other jurisdictions, according to an article in The Banker. US voters — particularly Republican ones — are increasingly aware — and wary — of the threat posed by CBDCs, as demonstrated by the crowd’s reaction to Trump’s announcement. This, if nothing else, stands as testament to the power of social and independent media, and goes a long way to explaining why governments across the West are trying desperately to muzzle them.

Keep reading

Hidden Agendas: Beware of the Government’s Push for a Digital Currency

The government wants your money. It will beg, steal or borrow if necessary, but it wants your money any way it can get it.

The government’s schemes to swindle, cheat, scam, and generally defraud taxpayers of their hard-earned dollars have run the gamut from wasteful pork barrel legislation, cronyism and graft to asset forfeiture, costly stimulus packages, and a national security complex that continues to undermine our freedoms while failing to making us any safer.

Americans have also been made to pay through the nose for the government’s endless wars, subsidization of foreign nations, military empire, welfare state, roads to nowhere, bloated workforce, secret agencies, fusion centers, private prisons, biometric databases, invasive technologies, arsenal of weapons, and every other budgetary line item that is contributing to the fast-growing wealth of the corporate elite at the expense of those who are barely making ends meet—that is, we the taxpayers.

This is what comes of those $1.2 trillion spending bills: someone’s got to foot the bill.

Because the government’s voracious appetite for money, power and control has grown out of control, its agents have devised other means of funding its excesses and adding to its largesse through taxes disguised as fines, taxes disguised as fees, and taxes disguised as tolls, tickets and penalties.

No matter how much money the government pulls in, it’s never enough (case in point: the endless stopgap funding deals and constant ratcheting up of the debt ceiling), so the government has to keep introducing new plans to empower its agents to seize Americans’ bank accounts.

Make way for the digital dollar.

Whether it’s the central bank digital currency favored by President Biden, or the cryptocurrency being hawked by former President Trump, the end result will still be a form of digital money that makes it easier to track, control and punish the citizenry.

For instance, weeks before the Biden Administration made headlines with its support for a government-issued digital currency, the FBI and the Justice Department quietly moved ahead with plans for a cryptocurrency enforcement team (translation: digital money cops), a virtual asset exploitation unit tasked with investigating crypto crimes and seizing virtual assets, and a crypto czar to oversee it all.

No surprises here, of course.

Keep reading

CBDCs Will Allow Police To Collect, Store Personal Data For Surveillance State, IMF Paper Reveals

The International Monetary Fund (IMF) published a report recently that warns about the very serious privacy risks associated with central bank digital currencies (CBDCs).

According to the paper, entitled “Central Bank Digital Currency Data Use and Privacy Protection,” any central bank can use its CBDC system to collect all sorts of private information about users. It could then turn that private information over to the authorities for mass surveillance and possibly persecution reasons.

“CBDC data allows for commercial exploitation while also raising the possibility of state surveillance,” the IMF warns.

The way CBDCs work is that every time a transaction is made, all sorts of private information is transferred and uploaded into the blockchain as proof. That information is then open game for government authorities and anyone else to exploit it for ulterior purposes.

“Central bank digital currency (CBDC), as a digital form of central bank money, may allow for a ‘digital trail’ – data – to be collected and stored,” the paper explains.

“In contrast to cash, CBDC could be designed to potentially include a wealth of personal data, encapsulating transaction histories, user demographics, and behavioral patterns. Personal data could establish a link between counterparty identities and transactions.”

The paper goes on to explain that there is economic value in CBDCs due to the data trail it creates. Data is considered an “infrastructural resource that can be used by an unlimited number of users and for an unlimited number of purposes as an input to produce goods and services.”

“CBDC data could potentially be harvested by financial institutions that, in turn, could help develop data-driven businesses,” the paper continues.

Keep reading

The Regime’s War on Cash Could Destroy the Economy

According to some “experts,” there is an urgent need to remove cash from the economy. It is held that cash provides support to the “shadow economy” and permits tax evasion. Another justification for its removal is that, in times of economic shocks, which push the economy into a recession, the run for cash exacerbates the downturn—it becomes a factor contributing to economic instability. Moreover, it is argued that, in the modern world, most transactions can be settled by means of electronic funds transfer. Money in the modern world is allegedly an abstraction.

The emergence of money

Money emerged because barter could not support the market economy. A butcher, who wanted to exchange his meat for fruit, might not be able to find a fruit farmer who wanted his meat, while the fruit farmer who wanted to exchange his fruit for shoes might not be able to find a shoemaker who wanted his fruit. The distinguishing characteristic of money is that it is the general medium of exchange. It has evolved as the most marketable commodity. On this process, Mises wrote,

“…there would be an inevitable tendency for the less marketable of the series of goods used as media of exchange to be one by one rejected until at last only a single commodity remained, which was universally employed as a medium of exchange; in a word, money.”

Similarly, Rothbard held that,

Just as in nature there is a great variety of skills and resources, so there is a variety in the marketability of goods. Some goods are more widely demanded than others, some are more divisible into smaller units without loss of value, some more durable over long periods of time, some more transportable over large distances. All of these advantages make for greater marketability. It is clear that in every society, the most marketable goods will be gradually selected as the media for exchange. As they are more and more selected as media, the demand for them increases because of this use, and so they become even more marketable. The result is a reinforcing spiral: more marketability causes wider use as a medium which causes more marketability, etc. Eventually, one or two commodities are used as general media—in almost all exchanges—and these are called money.

Since the general medium of exchange emerged from a wide range of commodities, money is a commodity. Again, according to Rothbard,

Money is not an abstract unit of account, divorceable from a concrete good; it is not a useless token only good for exchanging; it is not a ‘claim on society’; it is not a guarantee of a fixed price level. It is simply a commodity.

Moreover, in the words of Mises, “…an object cannot be used as money unless, at the moment when its use as money begins, it already possesses an objective exchange value based on some other use.” Why must this be the case? Rothbard explains further,

In contrast to directly-used consumers’ or producers’ goods, money must have pre-existing prices on which to ground a demand. But the only way this can happen is by beginning with a useful commodity under barter, and then adding demand for a medium to the previous demand for direct use (e.g., for ornaments, in the case of gold).

Hence, money is that for which all other goods and services are traded. Through an ongoing selection process over thousands of years, people settled on gold as money. In today’s monetary system, the money supply is no longer gold, but coins and notes issued by the government and the central bank. This fiat-money still has exchange-value because of its prior connection with true money and the inertia caused by the fact that it is already accepted as a general medium of exchange. Consequently, coins and notes still constitute money, known as cash, which are employed in transactions. Goods and services are exchanged for cash.

Keep reading