TD₿: Why the U.S. Should Reject Central Bank Digital Currencies by Natalie Smolenski
TL;DR If America moves forward with a CBDC, it will erode the distinction between America and authoritarianism.
Hey Bitcoiners,
When you hear the term “Central Bank Digital Currencies,” the word that should immediately pop into your mind is “anti-freedom.”
Today, 109 central banks around the world, constituting 95% of GDP, are experimenting with CBDCs in some form or fashion.
That’s because a CBDC would grant these unelected central bankers unfathomable power. This technology would give them the ability to surveil every economic transaction by every single American in the economy and implement monetary policies that are impossible with the tools at their disposal today.
Federal Reserve Chairman Jerome Powell made it clear in a recent press conference that the Fed’s design plans for a CBDC include a lack of privacy and digital identification attached to every CBDC account.👇
I think when an individual hears about CBDCs for the first time, they think, “Who cares? Why does it matter if the Fed can see all my financial transactions? I have nothing to hide!”
This is an extremely naive stance to take. A CBDC would allow central banks and governments to use money as an instrument not just for monetary policy but also for social policy. It would enable them to cut off anyone from the financial system with a click of a button, as well as impose capital controls and targeted policies on specific cohorts of people.
Darin Feinstein wrote this excellent thread that highlights some of the hypothetical ways that these institutions could weaponize CBDCs against the people. I recommend reading through it to get an idea of what we’re up against here.
It’s not difficult to envision how CBDCs could be used by authoritarian governments to control their populace. But it’s also not hard to see how even a “benevolent” government might decide to make sure the money it issues is not only not used for illicit purposes, but is also not used for what they deem to be socially unacceptable.
This is why it’s imperative that central banks and governments are not given this tool that grants them all this power in the first place. CBDCs would give these institutions the ability to invade peoples’ privacy and could lead to a violation of human rights on a scale we’ve never seen before. The risk of this power being abused is just too high.
Natalie Smolenski of the Bitcoin Policy Institute just published this well-researched piece titled “Why the U.S. Should Reject Central Bank Digital Currencies.” (09/27/2022)
Bitcoin represents an alternative to the future dystopian CBDC world that these central banks want to create. In short, this is why we Bitcoin.
As Natalie eloquently states, "The highly surveilled and controlled world of digital money suggests that a meaningful alternative must be private, uncensorable, and free.”
This is precisely why America should embrace Bitcoin instead of CBDCs.
Tick tock next block,
Cory Klippsten
Sign up for Swan and receive $10 in free bitcoin today.
Quote of the Day
“The most critical battle of our lives. Between freedom & serfdom. Bitcoin vs. CBDC.” - MacroJack, Bitcoiner and Writer
Job of the Day
Battery is seeking an Associate who specializes in financial modeling to join their team. This is an excellent opportunity for an ambitious finance professional interested in Bitcoin to drive catalytic change by bringing institutional capital to the Bitcoin network.
Not your particular skillset? Check out all the Bitcoin jobs at bitcoinerjobs.com.
Featured Event
Wednesday — come to Skybox Sports Bar & Grill in Knoxville from 6:00-8:00 pm for another night of the KBN Meetup. Come talk Bitcoin with Bitcoiners, and if you’re new to the game, this meetup may include a Bitcoin 101 presentation.
Not in town for this? Check out all the Bitcoin events at bitcoinerevents.com.
Meme of the Day
I wonder how the (illegal) cartels feel about CBDC's?
“Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world.”—Henry Kissinger