What You Should Know About Central Bank Digital Currencies
A monetary reset coming via a central bank near you
Bitcoin is an invention streamlining the way we exchange value. Its open-source nature has allowed for the source code to be peer-reviewed, copied, and modified by anyone who desires to do so. The industry has named bitcoin’s underlying technology as “blockchain”, with many companies taking the original code and modifying it to fit their business use cases. With companies such as IBM, Microsoft, Accenture, Mastercard, and Visa each having hundreds of patents on blockchain technology.
While the merits of a blockchain can be disputed based on its level of decentralization and the security of its network — the idea of a distributed database that verifies itself via a math-based ledger has sparked major interest globally — especially by central banksters in charge of our money. The latest use case for blockchain comes in the form of CBDC’s or Central Bank Digital Currencies, essentially CBDC’s are a purely digital currency issued by central banks. They can be used internally to help interbank settlements and externally to distribute to the retail market.
In Oct 2020 Goldman Sachs report titled “What’s in store for the Dollar” defined a CBDC as ”a new form of money, issued digitally by the central bank and intended to serve as legal tender. From an accounting perspective, it is a third form of liability for the central bank, alongside cash and central bank reserves”. The report details sixteen different countries’ efforts and progress in developing a CBDC. According to Sachs, “CBDCs are coming; it’s just a question of when.”
The Bank of International Settlements (BIS) put out a white paper in 2017 titled CBDC — Central Bank Digital Currencies: foundational principles and core features. This 26-page document written by the central bank of central banks explains how a CBDC can “provide a complementary central bank money to support a more resilient and diverse domestic payment system, offering opportunities not possible with cash while supporting innovation.”
It’s pretty easy to argue that our money is already digital with only 8% of the world’s currency in physical cash. With Covid-19 coin shortages, entire countries eliminating cash, and rewards on swiping cards, it’s clear that a cashless society is already in play.
So, what’s the big deal about a CBDC? It uses a private blockchain.
The Bitcoin blockchain is an open blockchain allowing anyone to contribute work to verify the validity of the ledger. This makes politically neutral uncensorable value transfer possible.
A private blockchain is a closed system with minimal participants in charge of approving transactions. It is a fancy database that is piggybacking on the merits of Bitcoin, exploiting the masses’ misunderstanding of technology. The CBDC will be a private blockchain.
Think about the following scenario: every single person can receive a unique wallet address where they can receive funds. People will be incentivized to obtain this wallet address in order to receive some monetary reward. Forcing compliance to complete a strenuous Know Your Customer (KYC) banking questionnaire. In doing so, each person will be creating a digital identity for themselves. Your wallet address will be directly tied to your identity. Every transaction spent from this wallet is now traceable by the few who can view the private blockchain ledger, painting a full picture of an individual’s spending habits and their business relationships. Each address can easily be flagged and tagged with an approval rating based on spending habits.
The level of control this brings to central bankers is dystopian. They will have the ability to directly intervene in each and every transaction in the economy. Removing an individual from the financial system will be easier than ever before and the consequences of questioning the official story include losing access to your funds.
Every single dollar will be accounted for and the central bank must now consent to your transactions. Blockchain brings a level of information storage and ease of distribution that has never been possible when dealing with money, this opens the door for a tyrannical wet dream only able to be executed in such a time as this.
As talks of a Universal Basic Income and a second stimulus check increase in frequency, so does the necessity of a CBDC to ease the distribution of funds. Patents are already filed meant to distribute cryptocurrencies. In March 2020, Bill Gates’ Microsoft filed patent no. 2020060606, yep, patent 666 which cites a sensory device that reads body data and rewards you in cryptocurrency for performing certain tasks. Makes you wonder, what kind of tasks deserve a reward? Democrats are already proposing that only those who get the vaccine are eligible for a stimulus check.
Many are drawing parallels to the Bible’s last book of Revelation and the idea of the “mark of the beast:”
“It also forced all people, great and small, rich and poor, free and slave, to receive a mark on their right hands or on their foreheads, so that they could not buy or sell unless they had the mark, which is the name of the beast or the number of its name.
This calls for wisdom. Let the person who has insight calculate the number of the beast, for it is the number of a man. That number is 666.” — Revelation 13:16
This implementation of a type of beast system is beyond speculation. On Oct 19, 2020, the International Monetary Fund streamed a meeting titled “Cross-Border Payment — a vision for the future”. BIS General Manager Agustin Carstens says “the key difference of the CBDC is that central banks will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability and also, we will have the technology to enforce that”.
In the recordings we see Federal Reserve Chairman Jerome Powell discuss a Digital ID citing “inclusion” and helping “poor people” to get reliable national ID systems. The higher objectives of efficiency, inclusion, and diversity are mentioned repeatedly as well as the opportunities this will bring to emerging markets. Regardless if you believe the surface-level philanthropy of these talking heads, it is known that money has always been a tool for control and now with the blockchain, control has become more efficient.
While we were all distracted with Covid-19, election fraud, and the riots of 2020, the foundation of commerce is being rocked as the money system changes right under our mask covered noses. The chances of derailing the plans of the IMF are slim. While the CBDC can bring a lot of opportunities, we must demand that these central bankers implement governance and transparency into their blockchain of choice. This is an uphill battle that requires the masses to have knowledge of the potential issue and the will to take action.
Our real power is in having an option outside of the CBDC in which we can transact, especially for those who understand history and what happens when a group of people gains too much control. There isn’t much we can do to derail the agenda except refuse to use their system. Although Bitcoin’s underlying technology ‘blockchain’ is being used to implement a CBDC, Bitcoin itself is an antithesis to the beast system.
Bitcoin’s network is rooted in transparency, sound monetary principles, and decentralization. The fact that no one person or entity can control the network means that your transactions are uncensorable. Your ability to remain a sovereign individual and transact in a trustless economy is essential for those who question the official narrative and refuse to accept the ‘mark of the beast’.
Bitcoin is not just a good investment, it’s a parallel system that is going to allow individuals to continue to transact when cash is removed and the CBDC is implemented.
initial article published in Escape Artist Insiders Magazine December 2020 Edition. For first access to Eryka’s insights — subscribe to the magazine.
As the Venture Director at a Digital Asset Hedge Fund, Eryka is well versed in bitcoin’s underlying technology, the blockchain. In 2019, she co founded Blockchain Center Miami with a goal of making her city the crypto capital of the Americas. Over the years, Eryka has taught hundreds of people how to safely navigate the cryptocurrency space.
In 2012, Eryka was a delegate in Washington State for Ron Paul’s Presidential campaign. She graduated with honors from Embry Riddle Aeronautical University with a Bachelors in Aeronautics. She is a Gates scholar, private pilot and liberty enthusiast.