The summer counterpart of the Davos Forum took place this week in Tianjing, China. Central bank digital currency was at the heart of the debate.
Expired currency
Central bank digital currencies (CBDCs) are unique in that they could be programmed to restrict consumption “undesirable”. Or even expire after a certain date. Such was the great confidence released under the aegis of the World Economic Forum.
These confessions came from Professor Eswar Prasad during a panel proposing to anticipate how “the transformation of money will fundamentally rewrite the way ordinary people live.”..
Mr. Prasad warned that we are “at the dawn of a virtual disappearance of cash”For the best or for the worst :
“The world could […] darken if governments decide that central bank currencies can be used to buy certain things rather than others deemed less desirable. For example ammunition, drugs, pornography or something like that. »
In truth, buying these things is already banned in many countries. What we must especially be wary of is rather a general rationing. In particular, for products whose importation threatens the exchange rate of the currency of the country in question.
“If you think about the benefits of CBDC the potential gains are huge”Mr. Prasad said. “You can schedule CBDCs with expiration dates.”
Indeed, the objective would be twofold:
-Reduce savings, which amounts to favoring consumption and investment. Not to mention the fact that a people without savings is a much more docile people.
-Reduce inflation through money that will expire before it is spent.
Some will wonder how forcing consumption can be incompatible with climate objectives? Quite simply by limiting the consumption of what is too greedy in carbon energy.
Moreover, the powerful, who are already shareholders of multinationals, certainly expect savings to flow into the stock markets. Or in Bitcoin…
The end of cash, priority #1
It’s hard to imagine why anyone would prefer to hold their money in the form of CBDCs. It is therefore crucial to initially promise the coexistence of the CBDC with cash.
But once the worm is in the fruit, who can guarantee that the successor to Christine Lagarde will not change his mind? Who can guarantee that large retailers will always accept cash? Person. On the contrary, brands like Aldi are already getting started:
Beyond the popular rejection, Mr. Prasad nevertheless warned against a “use of the CBDC to carry out very targeted economic policies or, more broadly, social policies”. “It could really affect the integrity of the CBDC as well as the integrity and independence of central banks.”
Never mind, Christine Lagarde has already revealed that a CBDC issued by the ECB would not be associated with a particular limitation. On the other hand, private banks will have plenty of time to fiddle with our money. “Those who can program the CBDC are the intermediaries, that is, the private banks”she confided.
Our article on this confidence: Christine Lagarde says more about the CBDC.
In sum, central banks would like to convince private banks to join them in their ambition to control how we can spend our money.
Sent on a seduction mission to Davos, the Governor of the Banque de France François Villeroy de Galhau however received a very cold reception from the CEO of the giant Citigroup.
Social Credit and Totalitarianism 2.0
Let’s say things. Central bank digital currency is shaping up to be the keystone of a surveillance and social engineering system. At the end of the day, the great design of the World Economic Forum is to import Chinese-style social credit into Europe.
Here is how the architect of this dystopia talks about it:
“By using as much data as possible, the system [crédit social] will play an important role in rebuilding a moral society “, he added during this interview conducted by Arte.
In this orwelian society, only docile citizens are allowed to climb the social ladder. Others are prohibited from leaving the country, traveling by plane, attending good schools, finding accommodation, eating out or borrowing money.
The Grail being that all data is linked to a digital identity (Digital ID). That is to say essentially purchase histories, internet browsing histories and travel histories (+ visits, etc.).
The alliance of social credit and the CBDC would mean the advent of an open-air prison. Anyone who did not fit the mold would regularly have their food cut into submission.
This is the nightmare that could come true if we are not careful.
Enter Satoshi
Bitcoin is our insurance against the totalitarian excesses that make the people of Davos salivate. Too late. If cash were to disappear, Bitcoin would replace it overnight.
And instead of being captured by the barons of the stock market, the savings will be redirected to Bitcoin. It is then hundreds of thousands of “cypherpunks” with freedom pegged to the body who will gain influence on world affairs.
If this latent totalitarianism is not enough, inflation will do its work. As Michael Saylor said at the BTCPrague conference:
“No country can stop inflation. No one can stop inflation. I can put you in charge of the world, you couldn’t stop the inflation. »
Barring an energy miracle, the physical limits of the planet combined with the fiat currency ponzi make inflation a mathematical certainty. For Michael Saylor, Bitcoin is the best store of value to protect against it:
Let us end by pointing out that the CBDC is already a total fiasco in Nigeria. Money is inseparable from freedom and it is not about to change.
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