On the eve of the future digital dollar

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2 years ago

Not all that glitters is gold.

Yesterday there was a press conference by the president of the Federal Reserve (FED) and, this created a lot of expectations in the financial (stock) markets, including the crypto market.

People waited for a specific announcement about the increase in interest rates as part of the strategy to reduce inflation and the impact that will cause on the behavior of the indices on Wall Street. Well! Still have to wait until mid-February when reports on pre-announcement board deliberations are made public.

In short, the announcement without details was a terse statement about the FED's willingness to intervene in any monetary distortions as they appear. So the information of importance to the general public will arrive without much noise as we see how the stakeholders will act.

Meanwhile, the mainstream talks little about the most recent report entitled Money and Payments: The US Dollar in the Age of Digital Transformation, delivered by the Fed's board of governors, which by the way, seems to me to be in tune with the report prepared by the World Economic Forum in November 2021 and where the BIS plays a leading role.

As you well know, the dollar is the world reserve currency anchored to the energy market based on hydrocarbons. The modern world runs on oil and coal.

Source: Image by Gerd Altmann on Pixabay 

I sometimes ask myself if bitcoin is fated to supplant the dollar as a benchmark. Then why is it so susceptible to dollar policy change?

In addition, we must not forget the current tirade about climate change and the goal of replacing polluting oil with supposedly clean energy.

The world is highly intertwined, and money is the medium for it.

In my articles on the subject, I usually point out that we are in a time of transition, where there are two blurred poles in conflict. Yes, a struggle for power in the sphere of control: centralized (elites) and decentralized (everyone).

Which is better?

It depends on how well-informed and educated you are to take responsibility for the reins of your life.

If we have learned anything from the pandemic, governments, supposedly chosen by citizens, treat them like children by restricting freedoms for the common good.

Information, money, and weapons have always sustained power. In this sense, we are under two of those elements.

You could argue: I am not at all interested in the report you refer to; I am not American. Also, I bet on Bitcoin Cash.

You're wrong!

Although, I congratulate you if you see Bitcoin Cash as a liberating instrument beyond its use as a currency.

The world is not that simple, and any decision of this nature will affect you unless you are on a remote island in the middle of the Pacific. Although, at present, it is the area scheduled for the residue of space artifacts that fall from the sky.

The report examines the pros and cons of the potential creation of a US CBDC and opens a public consultation with 20 questions on the Fed's website with a deadline of 120 days.

It is convenient to look at the official site, even if you cannot participate. I leave the link below.

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

I think it is a marketing strategy to give the digital dollar a cryptocurrency-like dress, but with the supposed plus of the support of social-economic regulators.

However, one must be clear that a CBDC is not a cryptocurrency.

Let me clarify. The CBDC (centralized) with a private and closed code; will force the citizen to provide detailed personal information, where only the central bank will see the transactions. Where is the transparency? A condition where corruption proliferates.

In contrast, a real cryptocurrency is public and decentralized. The crypto has no permission and open source code in plain language.

In addition, no one controls it, nor does it require you to provide personal information. Also, transactions can view and check by anyone in real-time. In essence, it is designed from the ground up to maximize freedom.

And most fearsomely, CBDCs will undoubtedly be designed to maximize control, making it possible to block transactions, freeze accounts, alter account balances, and even place limits on account holdings.

Well, when the government offers you CBDC as the cure-all, if you do your homework enough, don't say you were duped. Probably, you will be forced. In the meantime, learn as much as you can about Bitcoin Cash. Perhaps, it is one of the ways to fight for freedom in difficult times.

I end by thanking all my colleagues in the community, who contribute value daily here, and all my sponsors for believing in the content that I share with you.

An original article by @Jnavedan

The thumbnail image by Gerd Altmann on Pixabay 

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