cbdc central bank digital currencies they are coming and the digitalization of fiat money will be the final nail in the coffin for freedom we know what's coming we've been covering this since 2020 which marked the beginning of the end for financial freedom well luckily this content will always stay free in all sense and cost because it's time for chico crypto to begin central bank digital currencies what are they exactly well it's a digital form of a country's fiat money usually issued by the central bank of that country and guess what these digital currencies are powered by satoshi nakamoto's invention the blockchain but they aren't powered in the decentralized sense unlike bitcoin where the distributed network of miners and nodes make up the trust layer with cbdc is the government and the central bank who issues the currency is the trust and consensus layer this means that the
government the central bank and large financial institutions will run and control the node or nodes which power the network by validating and verifying all the transactions it's a private and permissioned shared ledger which means they will have financial power like never before before we get into those powers how do we know cbdc's are about to deploy across the globe while rejecting bitcoin while the imf the international monetary fund whose purpose is to ensure the stability of the international monetary system just tweeted this last week a picture example of cbdc systems and the words how will central banks issue and circulate digital currencies our new fintech analysis looks at three models with a link that takes us to their newest report behind the scenes of central bank digital currency emerging trends insights and policy lessons where they go through some of the deployed and planned cbdc's in imf partner countries like the bahamas canada china eastern caribbean currency union sweden and uruguay this is the same imf who is going after el salvador for them passing laws to make bitcoin their legal tender bitcoin will be el salvador cbdc a distributed uncontrollable system that the powers that be do not like one bit so let's examine one of the more robust cbdc's and most popular as it comes from the world power china who's conveniently the imf's second top member with over six percent of the group's voting power china all the way back in 2014 shocked the world when they launched their country's social credit system which has taken a page right from the netflix series black mirror and china citizens are now abiding by a moral ranking system and for years they've been monitoring their behavior of the enormous population and it ranks all the citizens based on their social credit this is a game of life where each citizen is assigned 1 000 social credit points and they can gain points or lose points based on their behaviors what is good behavior well like praising the government on social media that can gain you points but if you criticize them online that is deemed bad and it will drop your score good scores above a thousand give you benefits in chinese society like priority to school admission and employment easier access to cash loans and lines of credit cheaper public transport and even tax breaks but bad scores below 1000 have consequences you can be denied licenses and permits and access to social services you can be excluded from airlines and taking railways you can have your access to credit stomped out and they even go as far as public shaming although this social credit system couldn't be fully realized until a digital currency fully controlled by the government was issued that's why five years later in 2019 china unveiled their dsep system for a central bank digital currency the digital u1 has been live within their country since the middle of last year and debuted to the international community at the olympics this year dsep stands for digital currency electronic payment not to decept you but dsep borrows a distributed blockchain's key concepts such as a peer-to-peer network of payments traceability and tamper-proofness from outsiders although since the people's bank of china is the issuer and provisioner of funds they are the gatekeeper meaning tampering of accounts and funds can happen through them this centralization means that china's government has the ability to freeze and close accounts at will but on the flip side the government can rectify mistakes made when using or transferring the digital currency the government and the pboc have the ability to tamper and tamper where they see fit as we can see from this article the digital you want is programmable meaning smart contracts can be implemented the first programmable function being initiated is an expiry date meaning the currency becomes useless if not used within a certain time frame this forces consumption by the people who use it an expiry date to begin yet the programmable functions will only grow and get more overreaching as time goes on for example since the chinese government is looking for their citizens to be healthy they already provide free gym membership for those with a good social credit score they could eventually implement a function which only allows citizens a certain allowance of junk food per month if a citizen goes over the digital you want allowance for junk food they would be forced to only buy healthy meals allowed by the rules of the program if they go to buy junk food their carter application wouldn't work the government can and will control citizens even down to what they eat just think about it the government will decide how money is being spent by their citizens the clothes they wear the places they go the people they transact with or even down to the people they spend money with if one of your friends is on the social bad end of things and you were on the good it's possible the government could stop you two from enjoying a meal together going to see a movie together or shopping at the mall together so we know china is already moving forward and has developed their cbdc system and large world organizations like the imf and even the wef are promoting them as the next wave in the financial revolution but what about other world powers like the united states and russia well let's begin with russia back in june of last year they started their cbdc trial with a total of 12 of their banks announced for the testing group well earlier this month that trial was announced as a success as we can see from the coin telegraph article they say three banks out of the 12 financial institutions in the digital ruble pilot group have already integrated the cbdc platform with two of them completing a full cycle of digital ruble transfers between clients using mobile banking applications well i'm sure some of these banks that took part in this trial are some of the banks hit with the heavy sanctions just announced two days ago president of the european commission ursula vonderlane announced they were removing a large number of russian banks from the international payment and messaging system swift effectively isolating them and stopping any and all financing through the traditional systems including trade like imports and exports although cbdc's are not the traditional system and governments who issue them are in control of the messaging could china and russia still be able to trade through their cbdc systems that were built to be interoperable well i think so back in december of last year this article came out after putin's foreign policy advisor made statements in the media china and russia to establish independent financial systems and the article states russia and china have agreed to develop shared financial structures to deepen economic ties in a way that will not be affected by pressure of third countries following takes between the top leaders during the talks the top leaders of the two countries called for increasing the share of national currencies and mutual settlements and expanding cooperation to provide russian and chinese investors with access to stock markets said Yuri Ushkov Putin's foreign policy adviser Yuri also said efforts to create an independent financial structure for the service were part of the national currencies and mutual settlement and increased cooperation to give Russian and Chinese investors access to the stock markets. Special attention was paid to the need to accelerate. Trade Operations Between Russia and China What Happens When That Happens Cbdc is used to facilitate trade between the two countries and is a great success when immediate payments are formally settled. It may take two to five business days for it to move to other world powers. As the United States recalls the rapid growth of its CBDC, Bloomberg reported in January that a corrupt executive order would be issued in February, and the article states that management is also expected to She will consider the possibility of a government release. - Baked coin known as central bank digital currency or cbdc, although Bloomberg released an article in February stating that President Joe Biden's delay in cryptocurrency policy rollout was delayed by White House officials and Treasury Secretary Janet. A dispute over the scope of the pending executive order between Yellen, which could include the digital dollar, has now been finalized by senior management officials. The version that Biden is ready to consider, although the Ukraine crisis could delay further action because the article came out a week before Russia invaded Ukraine, now that we see that digital currencies and They are delaying the executive order if there are alternatives to provide faster facility through CBDC. The combination of Russia, China, or the two digital dollars, or USCBDC, will be crucial. Can shake hands China, Russia and all of us are deploying CBDC within a year. I have no doubt that this is a sign of the end of independence and the beginning of a real struggle. will see.
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