A Digital Dollar Is Not to Be Feared

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8 months ago

The U.S. Treasury releases report recommending the U.S. begin developing a CBDC just in case one is “determined to be in the national interest.” According to those watching the space, a digital dollar could mitigate fraud while protecting consumers and businesses. Read the White House’s framework for a digital currency for yourself. Crypto fans should not fear a digital dollar, yet. The only scenario in which crypto should fear a Fed-issued digital dollar is if Congress criminalizes private currency. In that case, every crypto holder should enter a class-action lawsuit defending the right own, hold, stake, and spend private crytocurrencies on First, Fourth, Ninth, and Tenth Amendment grounds. While Article 1, Section 8, Clause 5 of the Constitution gives Congress the power to coin money and regulate its value, it does not give Congress the right to outlaw private currencies. Cryptocurrencies represent the right of the people to speak freely through their monetary commitments, to freely and peaceably assemble, and to exercise their religious rights unimpeded (First Amendment). The Fourth Amendment guarantees citizens the right to be secure in “their persons, houses, papers, and effects” as well as against unreasonable search and seizure. It would take a full-length book to unpack all of that in a legal sense, but the long and the short of it is that cryptocurrencies, under current U.S. law, are considered personal property. To outlaw them is to essentially “seize” them. Furthermore, to use fiat currency or a government-backed digital currency deliberately as a weapon against the private ownership of personal property is to cause owners of that property to be less secure in their “papers and effects.” Naturally, the Ninth and Tenth Amendments, the forgotten Amendments, give the people and the states all powers not spelled out explicitly in the rest of the Constitution. Therefore, since the Constitution does not give Congress or its delegates the power to discourage the use of private money, cryptocurrencies should not be outlawed. That does not mean, however, that Congress may not regulate certain uses of it as interstate commerce.

Bitcoin exchange inflows see largest one-day spike since March. Michael Saylor says bitcoin will grow stronger post-MergeTraders, for the most part, took a break on the run-up to the Merge, and many of them shorted ETH. Now that it’s history, I think we’ll see trading volumes rise. This will surely benefit bitcoin.

Pundits say a greener ETH will drive adoption and more investment. The Merge shows crypto can change its spots. Only two entities control almost 50 percent of the network. Five entities control 64 percent of staked ether. This centralization could make it more vulnerable to government censorship, but will there be a run on GPUs? ETH’s value is down 18.5 percent in three days. Ethereum proof-of-work network sees its first hiccupsEthereum, like bitcoin, is becoming increasingly more centralized. Decentralization purists will make their homes on alternate blockchains.

Coinbase could earn $1.2 billion next year from higher interest rates. Is Coinbase treating ether stakers well?

Binance overpays millions in Helium accounting faux pas and partners with Ukrainian supermarket chain to accept crypto payments.

Did DOGE benefit from the Merge? Can the Merge save cryptoFor every upside, there’s a downside. Every rose has its thorn. A universal principle that cannot be violated.

The effects of crypto on the economy.

Is Do Kwon in hiding?

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The man who invented the metaverse is now building it. Future companies could hire a Chief Futurist to run their metaverse operations. The metaverse is not just a moment, but a movement. Before joining the metaverse, companies need a digital privacy plan.

MetaMask and other wallets need to be more user-friendly.

U.S. banks pause crypto lending to see what the SEC will do next.

What small business owners need to know about crypto regulation.

The Department of Justice has hired 150+ prosecutors to crack down on crypto crimes.

10 smart contracts examples.

The world of soccer is scoring goals with Web3.

The ABCs of taxing digital currencies.

Building the forefront of decentralization.

Why Exodus is a better wallet than Atomic wallet. I use Exodus and I like it, but I have not used Atomic wallet so I can’t vouch for it.

Tuesday has been declared International NFT Day.

Snark and commentary in italics. Coffee in my cup.

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Cryptocracy is a decentralized newsletter published several times a week. I curate the latest news and crypto analysis from some of the brightest minds in crypto, and sometimes offer a little insightful and snarky commentary. Always fresh, always interesting, and always crypto.

First published at Cryptocracy. Not to be construed as financial advice. Do your own research.

Image credit: Nansen via Bitcoinist

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8 months ago


CBDC - Smells like CeFi.

Tbh, I don't think many will adopt it and it's kind of a joke when we already have USDC/USDT and many more.

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8 months ago