One of the major challenges that most central banks face is how to control the money supply cost-effectively. They are operating under the disguise of using these bank-issued digital currencies to reduce costs by making it cheaper for payment processors and banks to deal with transactions than it is in their systems.
Another disguised goal of these initiatives is to improve the efficiency of their currency issuance process and reduce costs by automating certain processes.
Thus, they intend to use Digital currencies to help introduce new ways to store and transfer money digitally which removes the necessity for physical cash, checks, bank wires, etc.
That’s great if you work at a bank or pay fees at a payment processor; not so great if you don’t. The truth is that most people do not use a lot of bank services, so this doesn’t make a difference to most. Through carefully thought-out means, our governments plan to use a virtual currency for controlling your money without you knowing about it.
CBDC: The new form of digital currency
A CBDC is a digital currency that’s directly issued by a central bank. This digital currency has properties that are usually only possessed by physical cash. Most of us have come across payment apps like Venmo, PayPal, Square Cash, Apple Pay, etc. They allow you to transfer money to others, pay them back for something, or split the bill with a friend. All the benefits it offers don't matter at this point because it's still operating in the centralized form. This means, your personal finance data is influenced and controlled by an entity. With a decentralized model, no single entity owns your data and there’s no central repository of data for hackers to target.
Why You Should Be Concerned About Central Bank Digital Currencies?
The fact is that CBDC is under the control of a central authority, and the government has the power to control the money supply and create inflation. And this is a big problem. It’s estimated that Americans spend trillions of dollars on items like food, clothing, rent, taxes, and transportation. If inflation is low, people are likely to notice the difference between today’s money and tomorrow’s money. They have the option of demanding a bigger piece of the pie or trying to get the pie to be bigger by force. But if inflation is high, you know the rest, because you are currently experiencing the effects.
How the government intends to use CBDC for controlling your money
If you’re familiar with Bitcoin, then you probably noticed the link between it and blockchain technology. As the name suggests, a blockchain is a decentralized database that can store and transfer data in a very secure manner. It can be used for a variety of purposes like tracking assets or recording transactions. The government wants to make use of the decentralized nature of blockchain technology to issue a national digital currency. Now that blockchain technology is being used for all kinds of important things, the question is why are they using it to control the money supply?. While blockchain is undoubtedly a very useful technology, it’s not supposed to be used for the greed of the Feds. A greed they justify by parading the internet/news with stories of issuing a digital currency.
The Dark Side of Central Bank Digital Currencies
The piece of paper in your wallet is worth something because the government has declared it to be worth something. You can exchange it for goods and services, or use it to buy things. You hold the power to use it for good or for bad. With a CBDC, the government will have full control over the money supply and the economy. It can create as much money as it wants and print as many paper bills as it wants. The power to pay taxes, buy groceries and other goods, or put gas in your car will be controlled by this virtual currency. The government will use this virtual currency to control your money and your life.
What if you are a non-crypto lover?
Even though you are a non-crypto lover at the moment, one way or the other this is going to affect you too. As it stands you are about to lose the final piece of control you hand over your money. The advent of CBDC is going to create an imbalance of power because the government will have full control over your finances.
But cryptocurrency gives you full control over your money, leaving you the power in your hands to determine how to save, invest, or trade with it
You should be aware that the government feels threatened over the adoption of crypto around the world and they fear massive adoptions. Thus, they are trying to take back control through whatever means possible and the only way they deem it fit is to try and overthrow the positivity around cryptocurrency.
Conclusion
A CBDC is a digital currency that could be dangerous to our financial growth, and economy at large if we don’t take action now. The central banks are trying to push through the adoption of CBDCs without the consent of the people as a whole. Many people don’t realize what’s happening, and they don’t understand the technology behind it. This is why all crypto lovers should spread the news of the freedom over our finances that comes with decentralized systems.
Posted Using LeoFinance Beta