Have you ever felt that your US dollars are not as scalable and you really need digital dollar? Me neither, but that beyond the point here. According to US Federal reserve, the most powerful financial institution in the world, CBDCs are crucial for the US economy. Ironically, the institution that oversees money supply in the US and subsequently pretty much in the whole world, is pushing the digital dollar plan. For those unaware, CBDC or the central bank issued digital currency is a Klaus Schwab evil type of plan to minimize financial freedom. Currently, there is a great divide in the US between the lawmakers and bankers and crypto lobbyists over the digital gold. With a new bipartisan campaign underway to bamboozle the dollar’s failing supremacy, lawmakers are at a crossroads.
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You Won’t Own Digital Dollar and You’ll Be Happy
Unsurprisingly, the Fed is pushing the bill to speed up the CBDC adoption in the US. In that regard, Attorney General Merrick Garland will decide whether it’s necessary to impose new laws for the Fed to commence the CBDC project.
Essentially, the Biden administration has been defending the digital dollar as a critical apparatus for the US economy, Mainly, lawmakers are making a case of digital dollar to maintain the dollar’s global supremacy. On the other hand, financial and political experts are warning against the major setbacks it could have.
On the political battle, crypto powerbrokers and bankers are standing against this bill. While calling it disastrous, banks and crypto firms are opposing the Fed on a head to head battle. Much like any issue in the US, both parties are relentlessly attacking one another while making some great points.
On one side, the lawmakers say that CBDCs could seriously diminish bank’s profit from their expensive payment systems. “There is a ‘don’t take my cheese’ opposition coming largely from the banks who view the CBDC as a potential disrupter of their very profitable payment systems,” Says Rep. Jim Himes from Connecticut. “It’s not a coincidence that pretty much every single bank and every single bank association has been in my office.”
Factually, banks are intimidated by this new digital dollar contender. After all, they are undoubtedly evil and have been for quite some time. Their payment systems cost an unfair amount of commission and is in dire need of optimization. Fair point from Sen. Himes here.
On the other side, banks and credit unions are pointing out the associated risks with CBDCs. The chief strategy officer and head of global policy at Circle, the USDC stablecoin issuer has warned against the digital dollar. According to Dante Disparte, a CBDC could “end up becoming the equivalent of the FAA flying planes and building jet engines as opposed to designating competition rules-based safe conduct in the skies”. Disparte called it “a solution looking for a problem.
The Lesser Evil
Principally, both sides make valid arguments in their case and they are both correct. What is the solution? For that, we must talk about the German idealist philosopher Hegel. According to Hegel, drama is basically a battle of two goods. What he means by that is not struggles are not simply a collision of good and bad, black and white and in general opposite poles. Characteristically, a realistic view is achieved by eliminating the binary oppositions. And by that, the thesis and the antithesis will brawl until an antithesis is born. At this point, Hegel says the antithesis is seldom a good outcome since it is what ends the argument. Now, looking back at US political history, it will be less than wise to expect any synthesis could come out of any argument.
And that, brings us back to the digital dollar. While it could drain deposits from banks and credit unions, it will also put it somewhere other than people’s pockets. Potentially, a central bank issued currency is an illusion of money. This hallucinatory asset is fully controlled by the central banks and regulated by the government.
Fundamentally, every government wants to grab as much as people’s capital as possible. For the most part, people keep their money in various forms of investments outside the reach of governments. Be it real estate or cash under their pillow, it is the people who own the biggest share of money in every country. Now, when the capital is in a bank account, most of it is circulating through the financial system. Generally speaking, banks use approximately 90% of stored assets to invest in all kinds of projects. Oh, and 90% is pretty much what you get on a good day!
Certainly, Bank’s payment systems are archaic, inefficient and expensive. Surely, banks are taking advantage of a multiple century long monopoly. But with CBDC in mind, it’s all about the lesser evil. In a time when the World Economic Forum is planning a great reset, the digital dollar is a coup against financial liberty. It may be cheaper, it may be easier and it may dethrone the banks, but it will never be real money in your pockets.
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