CBDCs: Financial Exclusion

Karlysymon

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While this is about UBI, it made me think that this is exactly how CBDCs are going to be programmed to function. In this South Korean experiment, the money can only be spent in your local area inorder to boost local businesses. We know TPTB want to perpetuate lockdowns and Mark Carney said that the "essential plumbing" is in place for green finance. I just concluded that as in the experiment, you simply won't be permitted to spend any money (UBI or otherwise) outside of your local town or country....in effect, locking you down. Furthermore, things like buying gas, I.C.E cars, animal feed,... anything that doesn't conform to their green dictates will simply be unattainable outside of barter trade.
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Karlysymon

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"An international agency is urging central banks to help strengthen national digital ID systems and make KYC requirements easier to enforce. The International Monetary Fund (IMF) says in one of its latest reports that the rollout of digital currency is gradually gaining traction in Sub Saharan Africa, but countries must have to build the required digital infrastructure and legal framework to facilitate the process.

Nigeria introduced a digital currency — the e-Naira — in October last year, while the Central Banks of Ghana and South Africa are conducting pilots for a Central Bank Digital Currency (CBDC).

The IMF report as noting that while there are risks and advantages that come with a digital currency, countries which have rolled it out or are planning to do so “will need to improve access to digital infrastructure such as a phone or internet connectivity.”

In the case of Nigeria, which has already rolled out a digital currency as a legal tender, greater digital ID adoption and improved KYC approval rates have been identified as a way to improve the economy more broadly, such as in a report commissioned by VerifyMe and released earlier this year. The country plans to complete its digital ID registry by 2025.

While this happens, the Fund advises that the Central Bank of Nigeria as well as those of other countries trialing or considering a digital currency will need to also put in place the necessary systems to manage data privacy risks arising from cyber-criminal activities.

Although the CBDC could negatively impact banks’ ability to lend in countries with unstable financial systems, the IMF also sees likely positive results. “The first is promoting financial inclusion. CBDCs could bring financial services to people who previously didn’t have bank accounts, especially if designed for offline use. In remote areas without internet access, digital transactions can be made at little or no cost using simple feature phones,” a portion of the report states.

According to the report, the CBDC, among other things, is more secure and stable, can be useful for government-to-person welfare payments, as well as facilitate international money transfers and payments especially to Sub Saharan Africa which is rated by the IMF as the most expensive region of the world to receive or send money.

Apart from Ghana and South Africa which are running pilots for different digital currency models, research on adopting it is ongoing in Uganda, Kenya, Rwanda, Mauritius, Madagascar, Zimbabwe, Eswatini, Namibia, and Zambia.
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Karlysymon

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"The other big difference is that it will give the government control of your money and the ability to put you under constant surveillance. In a world of CBDCs, the government will know every purchase you make, every transaction you conduct and even your physical whereabouts at the point of purchase.

It’s a short step from there to negative interest rates, account freezes, tax withholding from your account and even putting you under FBI investigation if you vote for the wrong candidate or give donations to the wrong political party.

If that sounds like a stretch, it’s not.

China is already using its CBDC to deny travel and educational opportunities to political dissidents. Canada seized the bank accounts and crypto accounts of nonviolent trucker protesters last winter.

These kinds of “social credit scores” and political suppression will be even easier to conduct when CBDCs are completely rolled out.

How does this relate to what is sometimes called the Great Reset? This would be the movement toward a single global reserve currency.

CBDCs and the Great Reset
Displacing the dollar would involve a meeting and agreement similar to the original Bretton Woods agreement of 1944. The agreement could take many forms. Still, the process would conform to what many call the Great Reset.

Still, things don’t happen that quickly in elite circles. Even Bretton Woods took over two years to design and another five years to implement even under the duress of World War II. The transition from sterling to the U.S. dollar as the leading reserve currency took 30 years from 1914 to 1944.

As they say, it’s complicated. Still, there are some huge changes that could emerge from the Great Reset.

For example, a new global currency regime would be an opportunity to devalue all major currencies in order to steal wealth from savers.


All currencies cannot devalue against all other currencies at the same time; that’s a mathematical impossibility. Yet all currencies could devalue simultaneously against gold. This could easily drive gold prices to $5,000 per ounce or much higher to increase the “inflation tax” (I’m sure you agree that you’re paying more than enough already!).

The Surveillance State on Steroids
Another change would be that CBDCs make it much easier to impose negative interest rates, confiscations and account freezes on some or all account holders.

This can be used for simple policy purposes or as a tool of the total surveillance state. Surveillance of incorrect behavior as defined by the Communist Party is the real driver of the digital yuan more than any aspirations to a yuan reserve currency role.

All of these shifts are now underway. The U.S. won’t adopt its own CBDC overnight, but it’s coming sooner or later.

The endgame for CBDCs would closely resemble George Orwell’s dystopian novel Nineteen Eighty-Four. It would be a world of negative interest rates, forced tax collection, government confiscation, account freezes and constant surveillance.
 

Karlysymon

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March
 

Karlysymon

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While this is about UBI, it made me think that this is exactly how CBDCs are going to be programmed to function. In this South Korean experiment, the money can only be spent in your local area inorder to boost local businesses. We know TPTB want to perpetuate lockdowns and Mark Carney said that the "essential plumbing" is in place for green finance. I just concluded that as in the experiment, you simply won't be permitted to spend any money (UBI or otherwise) outside of your local town or country....in effect, locking you down. Furthermore, things like buying gas, I.C.E cars, animal feed,... anything that doesn't conform to their green dictates will simply be unattainable outside of barter trade.
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View attachment 76673
Take this for what you will

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Karlysymon

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"The public would never readily accept CBDCs as money unless their existing money lost most of its buying power and the current system was in the gutter. This is how new levels of empire are born; a major crisis allows for the elites to consolidate control while the people are distracted by their own private disasters. The big picture is changed while each person is terrified by their own small picture calamity.

In the US, markets and mainstream economists are just praying that the Fed capitulates on interest rate hikes, because they think this would save stocks from collapse. However, even if the Fed did this there would still be the problem if inflation/stagflation. If they don’t back off of rate hikes (I predict they will not capitulate or reverse course anytime soon) then there will be recession on top of price inflation. There’s no way that the current speed of rate hikes is going to slow down inflation from tens of trillions of fiat dollars flowing through the global economy. As I’ve warned for a long time now, the Fed has created a Catch-22 scenario in which the economy crashes no matter which policy decision they make.

But what if this was all by design?

With the introduction of CBDCs in the wake of a stagflationary crash, the central banks could call for a new global network of currencies to “stop such a crisis from ever happening again.” The BIS and the IMF will be ready and waiting with the SDR basket, or something very similar. The bankers will remove all physical money over a short period of time and a global digital system will take over. All privacy in trade will be gone, except for those people involved in barter, black markets and commodities.

The advent of CBDCs could also mean that money and economic participation will become privileges, not rights. Digital trade could be tied to a social credit system, much like the one that exists in communist China.

Want access to your checking and savings accounts? Better not say anything critical of the establishment, or you could be reported by a neighbor or stranger by cell phone app and have your money disappear in seconds. The onus will then be on you to prove that you are “loyal” and get access back. You are guilty until proven innocent. Maybe you don’t want to take the next untested mRNA vaccine for the next dubious pandemic threat? You’ll have little choice if your ability to function economically is controlled digitally.

This is the world we are facing if we allow central banks to fully digitize money and trade. It is a nightmare environment of complete authoritarianism. The public at large is mostly unaware of the incredible danger inherent in CBDCs and they must be educated before the current crisis grows so large that they can no longer focus on anything other than their own problems."
 

Karlysymon

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Do we really have until December? I understand that they want us to start the new year with the new financial system. It just seems to me that they want to crash it much earlier than december, then again, it takes time to log EVERY vaccinated person's digital ID into the central database, so Rickards might be right afterall.

"Kiyosaki called President Joe Biden's signed executive order "the most treasonous act in U.S. history" and the creation of the CBDC "communism in its purest form," encouraging Americans to "stay awake." The tweet read, "Jim Rickards made his most important announcement today. It’s about the most treasonous act in U.S. history, Biden’s Executive Order 14067. It’s communism in its purest form, the creation of CBDC Central Bank Digital Currency. Stay awake. Tune in to Rickards. Tune out, Biden. Take care."

According to Kiyosaki, Rickards has the "most important announcement" about the EO 14067, which the president signed in March, and the CBDCs. Rickards is an economist, investment banker and ex-CIA insider with four decades of experience on Wall Street.

Rickards criticized CBDC and labeled it as "Bitcoin's Evil Cousin." He also exposed the supposed singular event called C-Day, which according to him, will take place on Dec. 13, 2022, and will disrupt the traditional financial systems in the U.S.

The ex-CIA insider also claimed when C-Day happens, paper money would be worthless and the U.S. dollar would crash. He said consumer spending and access to basic needs would also be restricted, and people holding too much money would be penalized.

Executive Order 14067, titled "Ensuring Responsible Development of Digital Assets," aims for the responsible development of digital assets, including developing policy plans and the organization of federal regulators. "Any future dollar payment system should be designed in a way that is consistent with United States priorities (…) and democratic values, including privacy protections, and that ensures the global financial system has appropriate transparency connectivity, and platform and architecture interoperability or transferability, as appropriate," the EO read."
 

Sibi

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DANGEROUS' DIGITAL DOLLAR Warning ‘Fedcoin’ is coming
Alex Diaz
15:55 ET, Mar 10 2022Updated: 15:59 ET, Mar 10 2022

A NEW "Fedcoin" digital currency could replace cash, hurt savers and allow the government to track payments, crypto experts have warned.

President Joe Biden announced the move towards a US Central Bank Digital Currency (CBDC) on Wednesday in a historic executive order on cryptocurrency regulation.

President Joe Biden announced historic moves towards a Central Bank Digital Currency in an executive order on Wednesday. Experts have warned about the dangers of CBDCs but believe they may strengthen the position of the original cryptocurrency Bitcoin.

He gave the heads of federal agencies including the Treasury, Justice Department and Homeland Security 180 days to come up with a report on how the new digital currency would work.

Biden also asked the chairman of the Federal Reserve Jerome Powell to “develop a strategic plan for Federal Reserve and broader United States Government action” on CBDCs. It comes as governments around the world are scrambling to respond to the explosion in cryptocurrencies which are not state-controlled. But experts say there are worries the new CBDCs could pose a threat by allowing the government to program money to control how and by who it is spent.

Alex Gladstein, chief strategy officer of the Human Rights Foundation and a well-respected voice in the Bitcoin community, told The Sun: “I'm concerned because there's a lot of language about Central Bank Digital Currencies in the executive order and I think they are dangerous for civil liberties. "It looks like Fedcoin is coming and I don't think that'll be good for the average American.

“Fedcoin would replace cash, it would replace paper money and coinage.
“It would permit instant analysis of transactions, as opposed to the privacy that cash affords.
“It would also obviously allow for blacklisting of people that the government doesn't like, which I'm sure would rotate through different administrations.
“These are concerning powers and they would also permit monetary powers that are concerning.
“Just like withdrawing from an ATM gives you the power to be private with your spending, withdrawing from an ATM also gives you the power to save in different ways.
“And if you don't have an ATM, the government will be very easily able to do things like negative interest rates, expiration dates on money, stuff like that.

“I don’t think it's gonna be great for savers, let’s put it that way.”
 

Karlysymon

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In 2016, the European Central Bank (ECB) announced that it would stop minting €500 notes, in a move that they say is meant to curb fraud and money laundering. The 500 euro note is the second-largest denomination currently across the common euro currency zone, and the ECB says that it is the banknote of choice among criminals.

While the stated purpose was to stop financial crime, others have speculated that this move was part of a recent "war" on cash, essentially with the government trying to get rid of cash and eliminate money from the economy. In a "race to the bottom" to weaken currencies in order to stimulate flagging economies around the globe, we may ultimately see a complete elimination of paper cash in favor of electronic money – not to be confused with digital currency, such as bitcoin, but rather fiat currencies stored as entries in bank accounts.
 

TempestOfTempo

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In 2016, the European Central Bank (ECB) announced that it would stop minting €500 notes, in a move that they say is meant to curb fraud and money laundering. The 500 euro note is the second-largest denomination currently across the common euro currency zone, and the ECB says that it is the banknote of choice among criminals.

While the stated purpose was to stop financial crime, others have speculated that this move was part of a recent "war" on cash, essentially with the government trying to get rid of cash and eliminate money from the economy. In a "race to the bottom" to weaken currencies in order to stimulate flagging economies around the globe, we may ultimately see a complete elimination of paper cash in favor of electronic money – not to be confused with digital currency, such as bitcoin, but rather fiat currencies stored as entries in bank accounts.
This will be interestig in regards to Japan. They are still by-and-large a cash based society, many only use cards for online purchases or other instances where its required. They have a very fiat currency-centric economy, so these machinations will hopefully hit a wall there.
 

Karlysymon

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"In similar spirit (of questioning people for their opinion about something they don’t understand), the European Central Bank (ECB) has been asking consumers what they want from a digital currency. Why, I’m not sure, since the Bank itself noted that the consumers they surveyed "demonstrated little knowledge of the digital euro”.)

I’m not sure whether to pay any attention to the findings of a survey of people with little knowledge, but I will note that their given opinions included a strong preference for payment methods with pan-European reach, universal acceptance, the possibility of instant and contactless person-to-person payments "regardless of the platform or device” and a one-stop-solution that would incorporate all the current payment options into "one system".

Those sound more like the ECB’s desires than those of baffled consumers who do not know what a digital currency is, but they seem reasonable enough. I am unconvinced that universal acceptance, at least in the foreseeable future, is either desirable or necessary but instant contactless person-to-person payments sound useful. I might have added the caveat that they must work offline, a point I will return to shortly, but the general principle is good.

I am nervous about that final reference to “one system” though. On this point, I must respectfully disagree with the European public because the overall reliability, resilience and capability of the European payments infrastructure would be significantly enhanced by creating a new and parallel digital currency system rather than adding a digital currency layer to what is already there.

It is because I am so interested in off-line device-to-device I read with great interest that the Dutch bank ING is piloting a peer-to-peer payments app that uses ultra-wideband (UWB) technology to let users transfer money by simply pointing one handset at another. They are working with Samsung and NXP SemiconductorsNXPI +0.3% on the 'Near' app to implement these payments for consumers. "
 
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