CBDC's a Plague for the 21st century part 2
How to Stop CBDCs
Does CBDC Have to be Bad?
This is the most important article in the series but also the hardest to write. Standing up to powerful governments and corporations is much easier said than done. However, there are things that we can demand from our government and do on our own that can prevent totalitarianism through a central bank digital currency.
First, we should recognize that a CBDC does not have to lead to totalitarianism. It’s possible to make a CBDC, not spy on the citizens, not shut down spending except for obvious criminals and not manipulate society with it. A government merely needs to “keep its hands out of the cookie jar”.
Advocates of CBDC will point out countries that handle the new technology well and don’t abuse their citizens. I am certain that some countries with relatively small populations, unified nationality, and caring governments could successfully run a CBDC. Countries like Norway, Denmark, and Singapore may successfully implement this technology and not become totalitarian. However, large countries like the USA, Canada, and India are much more likely to go in a dark direction that leads to oppression. The bigger the government and less connected to the population the elite are the more likely they will abuse a CBDC. With the current political climate in the USA, I am quite certain politicians would opt to abuse the technology.
Remember that only you can prevent totalitarianism!
The most important thing we can do is improve our governmental institutions. This is the most important option available. If our leaders are determined to control and manipulate us they will eventually find a sneaky way to do it. Bad leaders, sloppy institutions, and poor leadership selection processes must be eliminated.
The First Step is to Slow Down Possible CBDC Adoption
Slowing down CBDC adoption is key. The longer it takes to implement CBDC the more likely the American people will adopt alternative digital payment options. Once the alternatives have gained strong support adoption will become more difficult.
Cash must be protected. There are several reasons cash must be protected 1 but the obvious one is that it provides an obvious and easily understood alternative to digital surveillance money. Everyone knows how to use cash and because it’s analog it avoids many of the problems of state surveillance. It’s also important for national security2 because it’s a form of money that will work if the grid goes down. We must not accept a cashless society.
Encourage apps like Paypal to fight it. There are many different banks, payment apps, and credit card companies that have a lot to lose 3 with the adoption of CBDC. If CBDC is tied up in the court system it could provide years of opportunity for competition like Bitcoin to improve its technology and take over.
We Need to Create and Adopt Alternative Payment Systems Fast!
Digital payment alternatives to CBDC already exist. They just need to improve and gain more adoption. I personally believe that Bitcoin is an excellent alternative to CBDC even though it needs better scaling solutions. Bitcoin is sound money, 4 decentralized, not run by a single government agency, and is inherently international. I realize that the US government will fight hard to prevent mass Bitcoin adoption and will want dollar dominance to continue.
As long as the US debt-to-GDP ratio continues to grow the dollar will eventually collapse. The world needs an alternative and Bitcoin is the best one that I have found. That doesn’t mean there aren’t other great cryptocurrencies, or that I don’t like gold. I just believe that Bitcoin will become the world reserve currency for both nations, the stock market, and the crypto industry as a whole. Perhaps my next series of articles should be on why I think Bitcoin could take over the world.
The Final Step is to Outlaw CBDC
The truth is we could outlaw CBDC first and then do the other steps. I’m OK with that. But if we want to exorcise the demon of CBDC we must still buy time and create a better alternative. It’s not good enough to get rid of something that’s harmful we must replace it with something positive.
I conclude with a quote from Jesus that applies to our current situation.
“When an impure spirit comes out of a person, it goes through arid places seeking rest and does not find it. Then it says, ‘I will return to the house I left.’ When it arrives, it finds the house unoccupied, swept clean, and put in order. Then it goes and takes with it seven other spirits more wicked than itself, and they go in and live there. And the final condition of that person is worse than the first.
While Jesus may not have had CBDC’s in mind when he uttered these words the principle still remains. You can’t get rid of something evil and replace it with nothing. Power abhors a vacuum and something must fill the void.
The old era is dying, analog money like cash will only last so long, and our monetary system is heading to oblivion. What direction do you choose?
Final Word
Please think carefully about what kind of money the future will use. You determine the world your children and grandchildren grow up in.
One of the greatest advantages of the totalitarian elites of the twenties and thirties was to turn any statement of fact into a question of motive.”
― Hannah Arendt, The Origins of Totalitarianism
DISCLAIMER: This article is for informational and educational purposes only and should not be construed as financial, investment, tax, or legal advice. The author is not a licensed financial advisor, and nothing in this article constitutes a recommendation to buy, sell, or hold any cryptocurrency, gold, or other asset. Cryptocurrency investments are highly volatile and risky, and you could lose all of your invested capital. Past performance does not guarantee future results. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author operates a paid cryptocurrency education course and may hold positions in assets discussed.
https://www.robinsonandhenry.com/colorado/criminal-defense/retailers-must-accept-cash/#:~:text=Retailers%20must%20accept%20cash%20from,provides%20exceptions%20for%20some%20retailers.
https://www.usnews.com/opinion/economic-intelligence/articles/2016-04-07/cashless-society-would-be-dangerous-for-financial-and-national-security#:~:text=But%20the%20benefits%20of%20currency,residents%20to%20obtain%20critical%20supplies.
https://www.paymentsdive.com/news/central-bank-digital-currency-payments-Mastercard-Stripe-Fiserv-PayPal/630505/
https://bitcoinmagazine.com/culture/history-bitcoin-sound-money-helps-society