Brandon Admin Looks To Create A “Digital Dollar”

What possible issues could arise from the Government holding your money? And you won’t really have a choice

A “digital dollar” may seem far-fetched, but it is not beyond the realm of possibility.

Today, the Biden-Harris Administration published policy objectives and a technical analysis for a potential U.S. central bank digital currency: https://t.co/VrwSs7hpNS

— White House Office of Science & Technology Policy (@WHOSTP) September 16, 2022

Sounds reasonable

(Yahoo News) The Biden administration is moving one step closer to developing a central bank digital currency, known as the digital dollar, saying it would help reinforce the U.S. role as a leader in the world financial system.

The White House said on Friday that after President Joe Biden issued an executive order in March calling on a variety of agencies to look at ways to regulate digital assets, the agencies came up with nine reports, covering cryptocurrency impacts on financial markets, the environment, innovation and other elements of the economic system.

Treasury Secretary Janet Yellen said one Treasury recommendation is that the U.S. “advance policy and technical work on a potential central bank digital currency, or CBDC, so that the United States is prepared if CBDC is determined to be in the national interest.”

Oh, a central bank controlled by unelected bureaucrats, ones who usually seem to be hardcore Progressives (nice Fascists). They certainly wouldn’t have any power to see exactly what you spend, how you spend it, limit your spending, blacklist Wrongthink individuals and companies, or anything else, right?

Why a ‘Digital Dollar’ Is a Really Bad Idea

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Any digital currency that uses blockchain technology can technically be called a “cryptocurrency.” But, as Bitcoin influencer and content creator Layah Heilpern has aptly explained, Bitcoin has unique properties that make it valuable. Namely, it is both permissionless—anyone can use it and can use it how they want—and decentralized, meaning there’s no central authority that can control the currency.

This latter part is especially important. Because no one can increase the supply of Bitcoin beyond its predetermined mining schedule, no one can arbitrarily erode its value like the US government has done with the dollar through money-printing.

In fairness, they do this with non-digital money printing. Might it be easier with digital?

Of course, if a “digital dollar” was just kinda useless, that wouldn’t be the end of the world. But it’s much worse than that. While a central bank digital currency would offer none of the benefits of Bitcoin, it would offer governments new, unprecedented ways to control citizens. To call the idea rife for abuse is an extreme understatement.

After all, a central bank digital currency would allow the government to track your every purchase. It could also be easily used to restrict purchases.

The out of touch, insulated, elitists in government would never do something like that, right?

For example, imagine a future government deciding that gasoline must be rationed in order to address climate change. Your “digital dollars” could be made to stop working at the gas pump once you’ve purchased a certain amount of gasoline in a week. In this way, a central bank digital currency would open up new avenues for the government to assert control over our everyday lives. It would make our wealth and incomes less truly our own.

Nah, they’d never do that, right?

(Real Clear Markets) A Fed CBDC would make it hard for private citizens to avoid financial snooping by the government in every aspect of their financial lives. Moreover, suppose, as one would expect, that that the Fed’s CBDC siphoned large deposit volumes from private banks. The Fed would have to invest in financial assets to match these deposit liabilities, which would centralize credit allocation in the Federal Reserve, politicizing credit decisions and turning the Fed into a government lending bank. The global record of government banks with politicized lending has been dismal. A digital dollar could therefore undo more than a century of central bank evolution, which has usefully divided the issuer of money from private credit decisions. In the process, a digital dollar would subject private banks to vastly unequal and inevitably losing competition with the government’s central bank.  Finally, a CBDC would make it easier for the central bank to expropriate the people’s savings through negative interest rates.  For these reasons, a CBDC may fit an authoritarian country like China, but not the United States.

Just another Big Government idea from the Brandon admin.

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