When Covid spread its shady particles around the globe, the borders of nations were profoundly meaningful as travel restrictions were imposed and laws differed as per your geographical region. The ink lines on the map that divided us became alarmingly consequential for every citizen across the globe, yet concurrently governments around the world demonstrated almost universal approaches to public health policy.
China’s reaction to the Covid outbreak was followed by the vast majority of nation-states and now China’s lead in economic policy seems to be trending. China is leading the way in the development of the Central Bank Digital Currency or CBDC. This is essentially a liability of the central bank that can be used as a digital payment instrument. A means of surveying our financial activity and controlling our lives.
On February 4, Russia and China claimed in their joint statement that they are powers with ‘longstanding traditions of democracy’. Yes, you read that right. The last time I checked both these nations were ruled by megalomaniacs with authoritarianism in full swing. But alas in this topsy-turvy world the very definition of ‘democracy’ is now redefined by Xi and Putin.
Consider these distortions: Justin Trudeau acted in a ‘reasonable and proportionate’ way by invoking the Emergencies Act; Scott Morrison insists vaccines are not mandated; and strokes and heart attacks in children are being normalised with advertisements warning ‘kids have strokes too’. The lies we are constantly fed further erodes the public’s trust in government and yet politicians are going to rely on our trust to give them unprecedented economic control of our finances using the CBDC.
If one is to assume control of the people, the most effective means is via financial intervention.
China is a wonderful example of this with their social credit system and as I discussed in a previous article for Flat White, the Chinese Communist Party (CCP) will have full control over the virtual reality world in years to come.
In 2020, the European Central Bank, the Bank for International Settlements, and the central banks of Sweden, Switzerland, the United Kingdom, Canada, and Japan, created a working group to study the CBDC, focusing on economic, technological, and architectural issues. All G7 countries are experimenting with the CBDC right now.
Tony Richards, Head of Payments Policy for the Reserve Bank of Australia, in his departing speech last year refers to the CBDC as ‘riskless’ and says crypto will decline when households ‘are less influenced by fads’. He asserts we should be more inclined to listen to the warnings of securities regulators and consumer protection agencies. In other words – do not take responsibility or ownership of your assets. ‘Trust’ in the regulators because, after all, they have your best interests at heart.
This spin is getting a little old and embarrassing.
Justin Trudeau’s recent trucker tantrum saw him exact revenge on dissenters by hitting them where it hurts – in the pocket – freezing bank accounts of not only the truckers and protesters but also anyone associated with financially aiding the cause such as Grandma donating her spare $20 was deemed a ‘terrorist’. Jesse Powell, chief executive officer of Kraken Bitcoin Exchange says, ‘I think Canada is a good example that the Western World is not immune to these sorts of things. And maybe people, you know, ought to think, again, about whether the government is always going to have their best interests in mind, or that it would never go to this extreme of, you know, confiscating bank accounts without due process.’ (Forbes). And we ought to be on high alert given the fact that due process has been tossed aside when passing any new legislation relating to Covid mandates or quelling dissent. Governments will have us believe they have our best interests in mind, however the savvy citizen is justifiably cynical of such rhetoric.
Powell states that the ‘traditional financial system has essentially been weaponized’ and ‘crowdfunding platforms are regulated like terrorist financing platforms, individuals losing free access to their money would be tantamount to losing free speech’. The fact that cryptocurrency offers an alternative financial system acting outside government regulation does not sit well with authorities.
CBDC development will be important for governments as they try to stifle the growing interest in both crypto and stablecoins. As per Trudeau’s example, a once free, democratic nation has been betrayed by its financial system. Western nations cannot afford to be complacent and remain naive to a very similar Canadian scenario playing out in their own backyard.
As Robert D Knight from beincrypto.com states, ‘A CBDC dystopia may yet await. The greatest line of defence is decentralised cryptocurrency and bitcoin.’
Decentralised, unregulated financial options are imperative if we are to maintain any resemblance of control and anonymity. The World Economic Forum (WEF) makes no secret of their desire for a Utopian world as Klaus Schwab protests, you will own nothing and you will be happy. In Thomas Moore’s Utopia he describes a world where everyone is rich and no one owns anything. ‘On the economic side, there is a marketplace where no money is exchanged. There is no private property, nothing is private. No locks are permitted on homes, all things are shared.’ This echoes the sentiment held by the WEF, however, if human nature is permitted to exist, our instinctive drive for self-preservation and self-determination denies such a reality.
Importantly the question one needs to ask is why do we need a CBDC? What problem is it going to fix?
It is curious indeed that Western governments are once again looking to China’s actions for guidance. US Federal Reserve Governor Christopher J. Waller said, ‘After careful consideration, I am not convinced as of yet that a CBDC would solve any existing problem that is not being addressed more promptly and efficiently by other initiatives.’
So why on earth is this being pursued with such ambition? The only rational conclusion is control. Another form of government control and disturbingly it will most likely be welcomed by the masses who are already programmed to believe the one truth disseminated by government. Covid has demonstrated this. Whoever gets to define reality wins. And what is most troubling is that those whose minds are being moulded are defending those who are doing it.
the possibilities of the CBDC are frightening. A Director at the Bank of England, Tom Mutton explains that CBDC, ‘opens up new technological possibilities, including programming: effectively allowing a party in a transaction, such as the state or an employer, to control how the money is spent by the recipient.’ In a recent Joe Rogan interview, Maajid Nawaz gave this example, ‘If you try to buy unhealthy meat it just won’t work. You tap your card, you can’t buy that thing, but because you’ve met your quota of burgers – you’ll have to buy a vegan meal instead.’
The CBDC will remove financial independence and autonomy from our lives. The government will enforce this system not by force but by beckoning the will of the people as demonstrated during Covid. They will use fear of unregulated digital currency framing it as a threat to financial stability and security. Will we once again succumb to the fear-mongering?
There is no need for a Central Banking Digital System, and we do not need to emulate China’s economic strategies allowing the attainment of citizen financial control. It is the government’s worst nightmare if cryptocurrencies continue to gain traction and for cash to survive. Let’s not allow the ink lines on the map to fade away. Let’s defend our sovereignty and economic structures that truly underpin the democratic way of life.
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