In the meantime, while major banking firms are investing billions into various blockchain products, central banks and global institutions like the BIS and IMF have been developing their own systems. In fact, the BIS notes with enthusiasm that around 90% of central banks around the world are already in the process of adopting CBDCs.
But why would anyone want to use government and establishment bank controlled cryptocurrencies when they have access to Bitcoin and dozens of other coins that are supposedly independent? Why trade freedom for more centralization?
First, existing cryptocurrencies are not as free as many people believe, with ample government tracking of blockchain transactions in place for years, the notion of the completely anonymous crypto user is a bit of a fantasy, and the idea that a product such as Bitcoin is going to “bring down” the central banks is becoming less realistic by the year.
Second, the crypto market is highly unstable in part because it is still very limited. While crypto use in America is higher than most other countries with around 12% of people using it as an investment (not as a currency), the rest of the world is mostly uninterested with an estimated global footprint of around 4%. Of that 4% only a handful of people actually own the majority of the market; these people are known as “whales” and they have the ability to tip the market up or down with little effort.
This happens in many other trade commodities and paper currencies also. The point is, crypto is not immune to manipulation.
Third, crypto is enticing to people because of the quick profits that can be had, but massive losses are also a danger. The overall crypto market has plunged by $2 trillion in the past year alone – Over 60% of its value. The implosion of huge trading companies like FTX also undermines the stability of the market and usually it’s the average investor that ends up suffering the consequences.
All of these factors and more can be used by banking elites as a rationale for the implementation of CBDCs and global regulation of crypto trading. And, if the bloodbath in existing coins continues, people may even welcome CBDCs as a “safe” investment or currency system.
The investment losses in blockchain products along with the scandals in exchanges is a rather convenient opportunity for the banking establishment to promote their own currencies as a replacement. In the wake of the FTX event, multiple international banks including JP Morgan and Goldman Sachs have called for government regulation and a shift over to CBDCs.
The US House has scheduled hearings on FTX with an emphasis on regulation. In Europe, globalist Christine Lagarde and the ECB are calling for global cooperation on monitoring and controlling cryptocurrencies. Lagarde wants a “digital Euro” to take the place of existing coins and blames FTX and the larger market losses on lack of oversight.
Numerous crypto analysts are also demanding regulation, calling crypto “broken and useless” until governments step in to mediate (control) trade. This is the exact opposite of what crypto activists originally intended over a decade ago when Bitcoin was in its infancy, and digital trade back then was sold as some kind of revolution against the banking oligarchy. However, it’s easy to see where this is all going.
It means even more pervasive centralization. With paper currencies at least there is true anonymity, but with CBDCs the existence of the blockchain ledger precludes any and all privacy in trade. Not only that, but the institutional ability to cut off people from their wealth and economic access is going to be profound. If you think corporate and government led cancel culture is bad now, just wait until they can freeze your digital accounts at a moment’s notice because of something you said on social media. And, in a cashless society there are few alternatives beyond some kind of black market.
CBDCs mean the total death of any economic freedom the public has left, and central banks are exploiting disasters like FTX to make that death happen even faster.
Thu, 12/01/2022 – 06:55
Go to Source
Author: Tyler Durden