CBDCs Are Being Developed. Here Is Why You Should Be Very Worried

March 27, 2022

On March 9, the Biden administration released an executive order (https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/) instructing a long list of federal agencies to study digital assets and to propose numerous reports about their use and proposals to regulate them.

Much of the executive order is focused on cryptocurrencies. Biden has also instructed the federal government and Federal Reserve to lay the groundwork for a potential new U.S. currency, a digital dollar.

‘If the United States were to adopt a digital currency, it would be one of the most dramatic expansions of federal power ever made. [They more than likely will]

“In life one can’t give absolute assurances of anything,” David Andolfatto, a senior vice president and economist in the St. Louis Fed’s Research Division responded before suggesting that “the best we can hope for” is for Congress to “respond to the electorate’s concerns” about privacy.

It’s clear that the Biden administration and Fed are working together to create a controllable, traceable, programmable digital currency [CBDC].

ARTICLE (https://thehill.com/opinion/finance/599768-biden-is-planning-a-new-digital-currency-heres-why-you-should-be-very-worried?amp)

US FEDERAL RESERVE RELEASES DIGITAL DOLLAR REVIEW

This paper examines the pros and cons of a potential U.S. central bank digital currency, or CBDC, and is the first step in a discussion of whether and how a CBDC could improve the safe and efficient domestic payments system. Money and Payments: The U.S. Dollar in the Age of Digital Transformation (PDF) (https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf) invites comment from the public.
Importantly, the paper does not favor any policy outcome.

The paper summarizes the current state of the domestic payments system and discusses the different types of digital payment methods and assets that have emerged in recent years, including stablecoins and other cryptocurrencies. It concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations.’

Source👇
https://www.federalreserve.gov/publications/money-and-payments-discussion-paper.htm

 

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