There are many articles posted on the crypto news site on the Central Bank’s Digital Currency (CBDC), which is a state-based digital currency sponsored by the blockchain which is equivalent to the country’s fiat currency. Indeed, many countries are thinking of launching CBDC, such as the United States, are in the final stages of developing CBDC, such as China, or have already launched new ones, such as the Bahamas and the Marshall Islands.
In general, the article about CBDC on the crypto news site talks about how this is a good thing, because it shows how the government is strongly considering the benefits of blockchain technology.
However, the reality is much darker, and the government actually launched CBDC with the aim of anonymizing the people and gaining power.
The article posted on ZeroHedge is titled ‘Elites Want to Remind You, “Remember, Cash Is Trash” in the Post-COVID World‘Attacking the heart of the matter. This explains that there are two reasons why governments around the world are becoming increasingly interested in CBDC.
The Government Wants To Get Rid Of Cash So That They Can Trace Completely And Control All Money
First, the government hates cash. Although Bitcoin (BTC) and especially hidden cryptocurrency like Monero (XMR) are built taking into account anonymity, nothing really beats money anonymity, at least in terms of leaving no trace. For example, someone can have cash under their mattress and the government will not track it. If someone has a peer to peer transaction with cash for any goods or services, the government also doesn’t have to have that trace.
In other words, the government has improved monetary regulations and forensics from year to year with the ultimate goal of tracking every transaction and controlling every account, but cash remains a challenge.
This is the reason why governments around the world are gradually phasing out larger bills, with the European Union removing bills with larger currencies, as well as India. Apparently, even the United States is wiping out larger bill bills.
The government claims that this step is to eradicate money laundering and corruption. This is certainly part of the reason, but also the government wants all people with large amounts of money to be forced to depend on banks, so that their money can be tracked and confiscated if the government sees a need.
Coronavirus brings this war against cash one step further with the government making people fear that cash can carry the virus. China actually destroyed a large amount of cash. There is some logic to this, although Coronavirus is not known to be carried by inanimate objects such as food for a significant amount of time. However, that is another reason that the government can use to convince its citizens to fully switch to digital currency.
The Government Needs Their National Digital Fiat Version to Easily Print Money
The second fundamental factor is that the global economy is a mess. A large amount of stimulus, namely printing money, has been needed and will be needed to keep the government going. Literally, trillions of dollars have been printed, and this seems to be just the beginning.
The government needs a version of their national fiat currency that can be printed with the touch of a keyboard, and CBDC is perfect for this. As ZeroHedge said, “The reason for the demonization of money is related to the understanding that the current global financial system is broken and will require a global coordinated bailout. The easiest way to make it is to be able to make digital money with one touch of the keyboard. “
Beyond that, it seems that a consortium of countries led by China and Russia want to depose the USD, the global reserve currency, and replace it with an international currency. There is some speculation that the International Monetary Fund (IMF) can launch such a currency and if that happens CBDC-based blockchain will be the most efficient and safe way to launch one world currency.
That being said, it seems more likely that China’s CBDC is a real effort to depose the USD as a global reserve currency. The United States is actually trying to include the CBDC USD version in the Coronavirus stimulus package to deal with this threat.
Zooming beyond the intricate details, it is clear that CBDC based on blockchain is not just an example of the government adopting blockchain technology. More importantly, CBDC should not be seen as a positive thing.
In contrast, CBDC is an attempt to get rid of cash so that the government has the ability to fully track and control everyone’s money, unlike the current situation where a large number of people still hide their cash in physical cash. Furthermore, CBDC is also a way for governments to print as much money as they want with the touch of a keyboard, in addition to being a way for governments to position global power.
On the last note, if physical cash is eventually removed and replaced by CBDC, then Bitcoin (BTC) and especially hidden cryptocurrency like Monero (XMR) will be the only form of money left over where people can remain anonymous and remain in full control for their money. fund. Therefore, this is another factor that will increase the value of long-term cryptocurrency.
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