Did The Fed Just Launch CBDC Pilot Program?

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6 months ago
Topics: Crypto, CBDC, Cryptocurrency, Money, Bank, ...

The Federal Reserve launched Central Bank Digital Currency pilot program with major banks. It is a 12-week pilot program. The Federal Reserve Bank of New York’s Innovation Center or NYIC has been researching CBDC and how it can be launched. Now NY Fed is testing this.

They will use distributed ledger technology. It is a private blockchain. General people cannot view what's going on. Of course, they will have absolute control and they can do anything with programmable money.

This is the worst time when FTX crashed along with other crypto platforms. But that's a good time for the regulators to step in and do their things. Some people are crying hard for regulations. It is as if regulators can save the day. They will say how good CBDC is and it is needed for the protection and safety of investors.

CBDC will centralize the power to the central authority. They can decide how you can spend money, how much you can save, or if you don't spend your money for a specific period of time, it will disappear.

When everything will be on the same ledger, they can see exactly what you are doing. They can reverse the transaction and take money away from any account. Maybe you think this is good, right? They can stop criminals and terror financing. They can stop fraud and the Ponzi scheme.

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Crypto exchanges are not banks. They are supposed to act like brokers. But when crypto exchange acts like banks and brings fractional reserve banking to crypto exchanges, it ends up pretty bad. It triggers the bank run when the customers see they cannot get the fund if they don't withdraw right now, they will rush to withdraw everything from the crypto exchange.

Many countries are working on launching Central Bank Digital Currency, CBDC. This is not a myth, it's reality. China tested Digital Yuan and worked on moving forward from that point.

Nigeria also tested the digital version of its currency and launched the eNaira. Many other countries are experimenting to launch digital versions of their fiat currency that gives them complete control.

Maybe at some point, you have to use CBDC. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

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Avatar for rezoanulvibes
6 months ago
Topics: Crypto, CBDC, Cryptocurrency, Money, Bank, ...