(Last Updated on November 6, 2020)
I believe we will see the United States issue the digital dollar by 2021.
It will be a centralized digital blockchain (possibly utilizing Ethereum as a base layer)
All national citizens should be concerned in the battle between national security, taxation changes, and individuals privacy.
There are a lot of possible issues citizens could be facing in terms of new taxation laws, privacy, and currency devaluing through inflation. The Federal Reserve and Central Banks have said time and time again that NOW is the time for fiscal stimulus and bailouts.
They are looking to bring in a whole new generation of “digital currency” users out of the COVID-19 crisis through stimulus and other financial recovery programs. Which could ultimately lead to mass money printing and debasing of our national currencies.
Cash is good.
(except when they start printing it out of thin air..but that’s another subject)
Cash enables millions of unbanked workers around the world to receive transparent wages and earn a livelihood without major technical and financial hurdles.
But the central bank sees cash as “non-taxable” transactions.. and they WANT tax money they have been losing for centuries!
The upcoming reality of Central Bank’s issuing their own digital currencies on a state controlled blockchain will be complete centralized control of the monetary system inside of a nation. Complete tracking and transparency on every digital dollars movement from citizen to citizen, company to company, and entity to entity. They will hide behind a guise of moral righteousness, claiming cash is the currency of criminals and drug dealers.
The Digital Dollar and Digital Euro will be here very soon.
The Central Bankers are already telling us that cash is the tool of criminals, drug dealers, and warlords..
Preparing us to be morally ready to ban physical fiat currencies..
Why not? You pay all your taxes like a good citizen, right?
You have nothing to hide… right?
A few quotes from August 20th, 2020 U.S. Federal Reserve Board meeting regarding “an update to digital currencies“
To enhance the Federal Reserve’s understanding of digital currencies, the Federal Reserve Bank of Boston is collaborating with researchers at the Massachusetts Institute of Technology in a multiyear effort to build and test a hypothetical digital currency oriented to central bank uses.
Separately, a significant policy process would be required to consider the issuance of a CBDC, along with extensive deliberations and engagement with other parts of the federal government and a broad set of other stakeholders. There are also important legal considerations.
It is important to understand how the existing provisions of the Federal Reserve Act with regard to currency issuance apply to a CBDC and whether a CBDC would have legal tender status, depending on the design. The Federal Reserve has not made a decision whether to undertake such a significant policy process, as we are taking the time and effort to understand the significant implications of digital currencies and CBDCs around the globe.
The Digital Dollar Project has been busily working towards a United States Central Bank Digital Currency
What is the Digital Dollar Project?
The Digital Dollar Project is a partnership between Accenture (NYSE: ACN) and the Digital Dollar Foundation to advance exploration of a United States Central Bank Digital Currency (CBDC). The purpose of the Project is to encourage research and public discussion on the potential advantages of a digital dollar, convene private sector thought leaders and actors, and propose possible models to support the public sector. The Project will develop a framework for potential, practical steps that can be taken to establish a dollar CBDC.
Below are some quotes from the Digital Dollar Project Whitepaper – “Exploring a US CDBC”
The digital dollar would also enhance payment transparency, thereby supporting the Fed’s objective to promote safe and efficient payments. Depending on design choices, digital transactions could offer degrees of traceability, and aggregate payment data could be analyzed in real-time to provide key insights into economic health and activity. This enhanced transparency and real-time analytics would, of course, need to be considered and implemented within the proper legal frameworks.
One approach in balancing privacy and law enforcement surveillance could involve a system that follows the current treatment of cash. However, it is important to remember while physical monies were not designed to protect the privacy of transactions or its user—it was simply an inherent feature of an analog bearer instrument—the US government and financial regulators have provided guard rails around cash in an attempt to limit illicit behavior. Such regulations include the filing of IRS form 8300 to report cash payments over $10,000 received in a trade or business.
If the US dollar is to remain the world’s primary reserve currency in the unfolding century, it cannot remain an analog instrument and unit of account for things increasingly denominated as digital tokens. It must itself become a digital tokenized currency that measures, supports, and transacts with the world’s digital tokenized things of value.
Across retail, wholesale, and international payments, a tokenized digital dollar would provide a new payments infrastructure that complements and sits alongside existing infrastructures, offering optionality, reduced risk, increased efficiency, and if desired broader access to central bank money.
On the surface the digital dollar’s focus looks good..
A few principles that we commend and support are the following:
I. Leverage private capital and expertise to build and innovate
II. Encourage public-private partnerships
III. Increase priority of research and development (R&D) in developing United States Government budgets
IV. Lead the development of worldwide technology norms, standards, and governance models that reflect democratic values and interests
V. Develop and adopt advanced technology applications within the government and improve the desirability of the government as a customer of the private sector
VI. Encourage state and local governments to adopt similar actions
The DDP was founded in January of this year and has already accomplished a large amount of research in regards to possible routes to take with the digital dollar. Failing to test and plan for as many monetary policy issues as possible, could mean losing control of the economy and dollar’s future.
But if the U.S. does not act quickly – they will fall to the wayside as China and other national leaders are already deploying Central Bank Digital Currencies.
- The DDP and U.S Government are determined to ensure the U.S. dollar remains as the global reserve currency
- Continue as a leader in the geopolitical and economic monetary policy
- Prioritize the need to modernize the U.S. dollar in an evolving, growing, competitive digital world.
- Protect national security of the dollar
In the spirit of the NSCET’s principles, we at the DDP see a critical opportunity for the United States to be a leader in advancing a CBDC, which would ensure our democratic values are sustained and enshrined in the future of money.
We hope the Administration will support appropriate legislation to authorize the U.S. Treasury and the Federal Reserve to collaborate and work towards developing and implementing several pilots to explore and find appropriate solutions to key areas of concern to the American public, such as: privacy, cyber resilience, financial inclusion, and interoperability, to mention a few.
Cash to cash transactions presents billions of lost tax revenue for nation states.
Cash to cash is the original peer to peer currency that keeps the government out of small transactions.
It will be a battle between the Fourth Amendment of the U.S. Constitution vs. Federal Reserve.
The degree of privacy available in a digital dollar will ultimately reflect the development of jurisprudence around the Fourth Amendment. When personal information is taken by the federal government directly from a person, the Fourth Amendment clearly requires that seizures and searches of their “papers and effects” must not be “unreasonable.” The general legal exception to the Fourth Amendment, known as the “third-party doctrine,” is that information knowingly shared with a third-party is not subject to constitutional protection and is therefore subject to seizure and search according to lower statutory standards. Yet, the third-party doctrine predates the digital era. It now arguably conflicts with the US Supreme Court’s often-stated goal of preserving the degree of privacy against government that existed when the Fourth Amendment was adopted, and the Court has recently declined to extend the third-party doctrine to cellular communications data.
Fourth Amendment protections against government infringement of individual financial privacy are not insignificant compared to other democracies and non-democracies. The digital dollar should be designed to support the full array of information policies that exist now and that may exist in the future, from information-free cash transactions to payments that are
recorded, reported, or limited for tax, law enforcement, and national security purposes. With the proper legal and jurisprudential development, the digital dollar may well enjoy superior constitutional privacy rights over many competing digital currencies. Transparency in the design and implementation of policy-based limits and requirements would help ensure that the tension among values is resolved consistently with democratic and rule-of-law norms.
Here in the United States most of the non-taxed cash transactions occur at an individual and small business level but happen everyday all around the country. This cash flow is necessary for facilitating fast, seamless business that drives the economy at many levels.
It is also required for the millions of people who are unbanked in the U.S. to receive paychecks and wages for hourly work. Many of our agricultural states have migrant labor from Mexico which often do not have banking access and prefer to be paid directly in cash. Language barriers, no vehicle access/driver license, high fees and other issues at banks make it difficult for illegal immigrants, temporary migrants, and longer term visa workers.
The unbanked needs financial stimulus – but the digital dollar will bring with it higher taxation and monetary policing that will be difficult to navigate
Cash is an important tool for our lower and middle class workers helping guarantee wages and streamline their economic needs without worrying about difficult bank access, debit and credit cards or smartphone financial apps..
The blockchain is an IMMUTABLE PUBLIC LEDGER that can be used for good or evil..
Whether its a $10 drug deal or $100,000s in shady construction, governments around the world are losing a HUGE amount of their tax income from physical cash transactions. Not bitcoin.. Not gold..
Taxation fears of a central bank created blockchain:
- Track every exchange and movement of national currency
- Remove cash from the economy to stop any tax less transactions
- Tax all individuals directly through the blockchain ledger – no gray areas, no estimates, no tax accountants needed
- Obtain taxes any time CBDC’s move – no need to wait for quarterly or yearly payments
For many bitcoiners this is the epitome of the evil use of blockchain to control and restrict instead of empower and establish monetary freedom.
The United States government has a focus on critical and emerging tech – distributed ledger technology is a major national security focus as well
Social policing through CBDCs is a major fear for many economists around the world.
China is leading the way with the first “Social Credit System” constructed to direct citizens’ behavior.
First established in 2018, China’s social credit system has evolved and will complement the implementation of China’s digital Yuan. The people’s republic of China believe that their unique economic system helps unify a record system for citizens, companies, and the PRC to track and evaluate trustworthiness. The numerical system tracks all movement and spending of any Chinese entity establishing a score.
The digital Yuan will 100% complete China’s mass survelliance system – watching their citizens 24/7 through video on the community and tracking every digital Yuan’s movement.
Low social score penalties:
- Restricted movement – cannot buy airfare, train, or bus tickets
- Credit card restrictions – shutoff or cap spending limits
- Disconnect internet usage
- Financial fees depending on offenses
Will the Digital Dollar or Digital Euro include some social scoring system??
Only time will tell, but it IS coming, and it IS COMING SOON!