Central Banks push CBDC Mass Adoption in Wake of Coronavirus Pandemic

On this episode of....

[RDS Crypto | Jacksonville, FL |  03/12/2020] 

While the world markets cringle in turmoil and contract rapidly, Bitcoin sees decreases in value to under $5,000 USD, and the world population gets closer to all-out panic, there have been two developments that push the world of legislatures and governments together with the world of finance and blockchain.  

COVID-19 (Coronavirus) Pandemic and Relationship to CBDCs

The last few weeks have seen unprecedented events in world history unfold.  The novel coronavirus, COVID-19, has caused panic worldwide, especially in the financial and fintech spheres of activity.  

Volatility will increase in these trying times, as we have also witnessed with the latest BTC plunge in value, which had the effect of erasing over 100 billion dollars of wealth from the leading cryptocurrency's market capitalization.  

Specifically related to the cryptocurrency sphere, the COVID-19 pandemic has initiated a rush for central banks to develop, adopt, and institute central bank digital currencies (CBDCs), which are centralized cryptocurrencies with the power of currency and backed by governments.  

Essentially wanting to do away with cash, world central banks, including the Bank of England, have stepped up the rhetoric and have even made policy statements related to the central bank's desire to implement a digital cash asset.  This has been supported by reports that physical currency can act as a transmission medium for the novel coronavirus, just like it can with any other organism that is capable of living outside of its host, such as hepatitis B virus.  

Of course, as faithful readers and crypto enthusiasts, you all realize the hazard this presents to decentralization, a core feature of blockchain projects.  CBDCs are so-called CBDCs instead of cryptocurrencies directly because of the centralization that is necessary to issue, control, and maintain the money supply of a nation by a government.  

This may be the catalst that those in power use to take cash away altogether.  It's very possible and has long been a goal of many in the banking/financial world; and a pandemic has long been the predicted vehicle for the removal of cash from society.  

1.  United Kingdom's Bank of England says that it's time to kick fiat.  

Today, The Bank of England, has formally issued a discussion paper on digital currency.  In this remarkable paper, the framework is laid for the United Kingdom to roll-out its own blockchain-based digital currency.  While a cryptocurrency in feature, this will be a government-backed digital asset (or a central bank digital currency or CBDC), meaning that it will be, by its very nature, centralized and controlled by the same banksters that control the current global financial markets.  

While this is great news for the idea of mass adoption, it is terrible news for those of who want a world where control of our currency is taken out of the hands of those who have enslaved us with debt for the last 150 years.  

I have said for years that the magic of blockchain will disappear when governments begin to issue the asset.  Once the government essentially nationalizes the blockchain, the sheer power of blockchain technology itself will be used against us in a massive surveillance operation that Edward Snowden himself couldn't dream of.  Some may call that FUD.  I do not.  Instead, I call is a fair warning, given the past performances undertaken at any time that world governments have previously wrested control of the nations wealth from the people.  

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2. South Carolina Legislature Recognizes the Potential of Blockchain Technology. 

The South Carolina Senate introduced the Crypto-Currency Act of 2020 in its state house, followed the announcement of a resolution in which they recognize the future potential of blockchain and the need to get involved now.  

This act aims to provide innovation for businesses in the state of South Carolina, and specifically uses language in which its intent is for South Carolina "to become the capital for the real-world application of the emerging technology of blockchain.

Realistically, there is going to be some crossover between blockchain and a central government.  I get it.  Even the purest decentralists among us must realize that it is just pure fantasy for us to think we can keep government out of the boat altogether.  Instead, we can push for ventures where governments fund projects with public funds and at the direction of the public (through referendums or other real-world consensus mechanism).  

So, why is the South Carolina bill better for the more libertarian of us than the news out of the United Kingdom?  

It's very, very simple. 

The UK paper works out the framework for the issuance of a UK-wide CBDC, issued by the Central Bank of England.  

The South Carolina measures aim to bring private blockchain ventures into the state to create what they hope becomes the "Silicon Valley of Blockchain."  

The South Carolina measures aim to better lives for citizens by bringing investment dollars and jobs into the state while the UK paper is about imposing mandatory centralized blockchain upon the public.  

One is oppressive by its very nature and the other at least presumes to be about the good of the people.  

We'll see, though.  I'd just as soon they all stay out and let us be.  But they will not, and we know it.  

Stay Healthy, Everyone!