Anyone who likes decentralized assets should hate CBDC*.
The darling central bankers have some new ideas about how money should work. You can find an asterisk at the bottom of the page defining CBDC for this article – but we will save you the trouble.
CBDC means Central Bank Dystopian Control!
And people’s faith in stablecoins is going to usher in an age of centrally planned horror.
Just use cryptos already!!!
Central Bankers Want 1984 To Look Like 1776
Central bankers want to empower governments in frightening new ways. In fact – the centralized systems they want to create look like a dark reflection of the decentralization Bitcoin inspired.
The fiat currency system we have now is highly centralized. Many people don’t understand they have no money at all – just IOUs from banks. Unless you hold physical currency, all you have is a promise to pay from a bank.
But that isn’t enough for the banking cartel. Sadly, the levels of control they want to build with CBDC will empower central planners in ways few can imagine right now. Let is help you understand what we are facing.
You Already Own Nothing
Stablecoins are popular. It’s easy to see why. Traders need a way to take profits. Some people need fiat-linked assets to pay expenses in the real world. The sheep keep using fiat money, so the world of crypto needs a solution.
Here is the problem. Most people don’t understand money. Like the weather and daytime television, money just is something that exists. The backend of the system is a mystery. To many, using a stablecoin is a lot like using PayPal or Venmo.
To put it simply, using USDT with Metamask is entirely different from sending “money” with PayPal. With USDT and a decentralized wallet, you own the asset. When you trust PayPal, user ownership is questionable.
The Value Question
Personal ownership has value. Today, most people have no ownership whatsoever. If someone was able to afford a house in a place like the US or UK, most of the buyers would use a mortgage to buy the property.
So, when most people “own” a property – they actually own a loan. Maybe one day they will own the house, but who knows. 30 years is a long time. The same dynamic is true for autos, and most major assets.
The banks own everything!
Stablecoins represent one of the first assets people can own that doesn’t rely on third-party custody. There is no bank taking control over the money. A person can easily own 1 USDC in a decentralized wallet, with no bank getting in the way.
CBDC uses a totally different system – which takes the personal ownership stablecoins offer and pervert it into something terrible.
Control Freaks
The banking cartel wants CBDC to be a social control mechanism par excellence. The danger is difficult to overstate. As imagined by the global planning class, CBDC would rewrite the existing social contract to a degree that few can imagine.
Like any major undertaking, the planners already ran a demo in a sandbox. The sandbox is called China. The CCP has an outrageous amount of power within its borders. Working with “private” companies, it rolled out digital payment platforms that are linked with social credit scores.
Remember our way of defining CBDC – Central Bank Dystopian Control!
WeRule!
WeChat is an interesting platform. It looks a lot like WhatsApp, but it integrates aspects of a platform like Grab or Uber (there are others, but you get the idea). It is also linked to your identity, and collects ALL the data you create.
Combined with the CCP’s social credit score system, the WeChat platform offers the government a huge amount of control over how a person in China lives. If you are in China, opting out is basically impossible. Even if you use cash, widespread surveillance uses biometrics to track you – and cut you off from basic social services (both public and private).
Admittedly, it is the first iteration of this idea in the modern world. The CCPs system is clunky. As a proof-of-concept it is decent, but the Western central planners want a whole lot more control. If CBDCs move forward – they will get it.
Default State Of Mind
The global control state wants power over your life on a micro scale. It wants to control what you can buy, where you can go, and even how much money you are permitted to have. It is full spectrum control where the state is able to dictate lifestyle on a minute-by-minute basis.
At the moment, many central banks don’t want to connect with retail users. The current crop of central bankers don’t want to upend the retail banking model. In order for a new system to be rolled out – modern fiat currency will have to fail.
Money is a math game. At the moment, all the major Western currencies are on a collision course with destiny. The destiny of any fiat currency is failure. With no exceptions all fiat currencies in human history have failed. It is just a matter of time.
Here are a few features of the CBDC system that is coming:
Use In Limited Locations: In a world where CBDC is used, you will only be able to use money in given geographic locations. With GPS tracking, your digital wallet can only be used in places the state requires you to live – and any escape from your zone is not possible (payment is not possible, and you will be punished for disobedience).
No Need To Diet: With CBDC, governments and banks can choose what you can buy at the grocery store – or anywhere in the zone you are required to live. All of your medical records and lifestyle information will be available to the AI and central planners, so they will decide what is best for you.
Total Compliance: Everyone will want to be a good “citizen” with CBDC. Anyone in the power structure can suspend your ability to use the CBDC system, which makes resistance to the state impossible. In fact, because your location is tracked in real time, you can be marked as untouchable, and people will avoid any contact with you – they don’t want to be “shut off” too.
As you can see, CBDC is the perfect system for a power-mad controller class. Stablecoins are part of the conditioning process that leads people away from decentralization. Fiat currencies are still in control – and with CBDC coming soon – the hopes of early Bitcoins will be dashed on the rocks of centralized control.
All is well. Return to your regular media consumption now. TikTok is waiting for you.
*Central Bank Dystopian Control
