As the US dollar provides all the services and stability and security needed to effect international transactions and commerce.
So says the US Federal Reserve Bank. Two top members of the Board of Governors of the Federal Reserve Bank have stated publicly that a CBDC would solve the issues inherent with a private digital currency.
My thoughts; 1st on the statement of the Fed Chairman, Jerome Powell. His opinion of crypto currency is binary. There are stable coins, and un stable coins. Dismissive or ignorant of the utility of the blockchain community, seems to be a habit of the autocratic despot members of this powerful cabal.
"You wouldn’t need stable coins you wouldn’t need cryptocurrencies if you had a digital U.S. currency, I think that’s one of the stronger arguments in its favor,” Powell said.
“Stablecoins certainly have some advantages in terms of faster payment systems and have some attributes of CBDCs but there are some risks with stable-coins right now,” Powell said. “I think the issue is that stable-coins are a lot like money market funds or bank deposits or a narrow bank.”
Many governments are discussing and exploring a CBDC. They see a way to hold back the tide of blockchain technology and maintain as much control as possible. This is the Golden Goose Syndrome. The cabal we call the Fed or the Federal Reserve has been fraught with cronyism, and insider trading accusations since long before the advent of the computer . They must protect their Golden Goose with all the power that has been handed to them.
Total Control of money and risk and inflation and store of value is a receipt for disaster.
For decades, the Fed has manipulated and controlled our currency as politicians and cronies drained off the real value of our dollar. The dollar is now a skeleton of what people assume it is. The value is continually shrinking as more and more dollars are printed and given away to projects that have no Proof of Work to audit the completion of projects. One example is the covid stimulus checks. Almost half of the money given away did not reach the intended recipients.
Given the track record of the Central Bank and prior stimulus giveaways, no one should be surprised at the gross inefficiencies nor the outright theft and the weak auditing effort to identify and recover stolen funds.
Along side multiple administrations that see inflation as a way to make debt disappear ; the US dollar loses value daily as the value is siphoned off due to inflation and alternative instruments . As the vast majority of fiat currency today is digital, the Fed sees crypto currency as a threat to their goose and they must defend this pipeline they created decades ago.
The Fed wants to control this growing form of Digital Currency and steps in years after the fact stating that with their “new” digital currency, there is no need for crypto currencies nor stable coins. They will ”fix” all the problems with one fell swoop. Really? What kind of mushrooms did you have for breakfast Mr. Powell. At what point can we start to believe your public press releases?
The weapons they use today are tried and true. Obfuscate , control the narrative with a compliant media, utilize cronies throughout the private sector and install straw men in strategic office of the 3 branches of the US government. What could go wrong with this plan? How bout blockchain Technology and universal access to financial tools?
Decentralized, trustless, accessible , and near inflation proof. All the concepts the Fed abhors and fear.
Lets looks at another Fed official and his comments
Vice Chairman for Supervision Randal Quarles. spoke to Bankers in Utah concerning digital currency and compared it to the fad of parachute pants in his speech, he argued that a digital currency regulated by the Federal Reserve would put great strain on the existing financial system and the strength of the US dollar, both now and going forward.
The Federal Reserve is also already transacting in digital dollars with commercial banks and financial institutions approved by federal law. By providing to these entities, the organization is ensuring stability for the economy, according to Quarles.
The value of the dollar “rests on a number of foundations,” he said, such as the strength of the U.S. economy; U.S. trade relations; the Treasuries market; the stability and liquidity of the dollar over time; strong property rights in the United States, and, “last but not least, credible U.S. monetary policy.” (more mushrooms please )
In a nutshell, "We don't need no Crypto stuff. We got our own stuff and you are getting in the way of our Golden Goose. We will regulate you until you give up cause we are from the Goobernment and we are here to help you. "
What could possibly go wrong with this train of thought? I for one, am incredulous of the press releases from these two men. The track record of the Fed should stand as a testament of their veracity . The depth of deceit and the width of their ignorance should play out soon. Stay tuned, and DYOR.
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