Let’s take a moment to clarify how much the Federal Reserve has “helped us” protect and strengthen our nation’s currency over time.
Since 1913, when the Federal Reserve was established, a dollar then now has around the same buying power as $26 today.
Everyone knows the dollar is worth so much less than it once used to be.
Now, after over 100 years since the Federal Reserve was first created, they claim to be working towards a more efficient financial system.
Chairman of the Federal Reserve, Jerome Powell, announced last week that the institution has been working on a central bank digital currency concept, or “CBDC.”
To most, it sounds like an attempt to replicate cryptocurrencies.
The Fed’s CBDC, like Bitcoin, is said to leverage blockchain technology; however, unlike Bitcoin and other cryptocurrencies, it will not be decentralized.
Simply meaning that the Fed could be able to monitor and possibly control every transaction you make.
Powell stated that by this summer, the Fed would be releasing a technical paper that gives insight into the new CBDC coin.
In testimony before Congress last year, the Chairman was asked if the Fed had any “visibility” into China’s central bank digital currency.
He stated, “Yes, we certainly have that…” “But they’re in a completely different institutional context. For example, the idea of having a ledger where you know everybody’s payments, that’s not something that would be particularly attractive in the United States context. It’s not a problem in China.”
Well, isn’t China viewed by many to be a communist country?
Let us remind Powell on behalf of every average American that yes, it is not something particularly attractive to us.
It may not be a problem in China to have payments tracked, but to state the obvious, it would certainly be in the US.
So, as a capitalist country, shouldn’t most American’s be a bit skeptical, primarily since we have heard of how China is treating their current CBDC.
For years China has been testing the effectiveness of their CBDC called the “Digital Yuan” in multiple districts within their country.
So far, they have been successful at tracking and monitoring their citizens.
Bloomberg reports that “China’s digital currency is as much about data as it is about money.”
According to research assistant at the Center for a New American Security, Emily Jin, China’s digital currency might appeal to some regimes that prioritize control over privacy protection.
Even a cryptographer at Cornell University, Ari Juels, who has studied digital currency designs for central banks, had the following to say… “The coins in your pocket are the best guarantee of your freedom.”