CENTRAL BANK DIGITAL CURRENCIES: THE WOLFPACK IN SHEEP'S CLOTHING

Before I begin, I'll be frank. I’m a die-hard libertarian at heart, and I’m naturally suspicious of anything to do with big government. Needless to say, I’ve been a fan of Bitcoin for many years, and highly critical of Central Bank Digital Currencies (CBDCs). But, earlier today, I was contemplating why. I mean, what exactly is it that makes the hairs on the back of my neck stand up when I hear the acronym ‘CBDC’? After all, stripping things back to basics, central banks already control our currencies, and the majority of money already exists only in digital form. So, what exactly is so unsettling about central banks issuing money entirely digitally?

After an intense blonde (again, I’m referring to beer, not my girlfriend), I began to suspect I was asking the wrong question. Perhaps the real question is; why should we bother with CBDCs in the first place? When we boil things down to basics, what possible advantages can they offer? Well, I scratched my head for a while, peruse a few old articles, and even had another beer, and guess what? Yep. I actually can’t think of a real advantage.

Efficiency, crime fighting and other fairy tales

Okay, sure, CBDC proponents will say it will make things more efficient - you know, just like technology always makes the public sector more efficient. That premise is so ludicrous, based on past history, that it doesn’t even warrant consideration. For, at heart, the things that make the public sector so inefficient are the vested, self-serving interests of those running the show - and the introduction of CBDCs is highly unlikely to change that. So, will CBDCs make things any easier for the average citizen? You know, the average citizen whose interaction with money is already mostly digital and working just fine. In fact, one of the arguments used by CBDC cheerleaders is that most people won’t notice the difference. Erm. Yeah. Exactly.

Right. So, maybe, CBDCs will make the world of commerce more efficient and boost productivity. I’m sure there are quite a few financial services that could be jettisoned in a world where money was, technically speaking at least, a little simpler (in that it has fewer ‘moving parts’). But, hang on a minute, doesn’t the financial services sector make up a significant part of the global economy, and provide millions of well-paid jobs? You know, those jobs that are desperately needed, just about everywhere.

But, hang on a damned second! Haven’t we already addressed most of the gross inefficiencies of the traditional global financial system, thanks to the introduction of stablecoins and blockchain technologies? Okay, maybe they aren’t totally addressed yet, but we’re certainly getting there. So, again, back to the question; why do we need to bother with CBDCs? I very strongly suspect the answer is that we don’t. Who does then? Well, who are the only people who could possibly, realistically, be set to gain from the introduction of CBDCs? Governments. The one thing that CBDCs offer that existing practices, systems, and tech don’t, is complete control. And, I mean complete control.

Trusting your government 100%

If CBDCs offer no real advantage for individual citizens or businesses alike, they are extremely compelling for governments, because they give, in one stroke, complete control over every single citizen. In a country that uses a CBDC, it will be impossible to live without using it. And, to use it means giving the government absolute control over every aspect of your life. Sounds dramatic, right? Very 1984. But, think about it. Yes, to function in today’s societies requires a large degree of compliance, but not total. You can still use hard cash to buy the necessities (at least you can in most places). You have to pay your taxes and bills, but you have sovereignty over your remaining funds.

Of course, many will argue that this level of control is a positive because it will enable governments to eliminate money laundering, fraud, financing of terrorism, and such nefarious activities. All very well and good… in a world where governments are the good guys. I mean, really the good guys. But, how anyone who’s been paying attention over the past three years can genuinely say the governments of even the most ‘liberal’ western ‘democracies’ are the good guys is beyond me. After Morrison and Ardern turned Australasia into police states that would make the Stasi blush, Trudeau impressed Kim Jong-un, and even bumbling Boris tried to turn the UK into a dystopia to rival a Black Mirror episode, anyone still believing the governments have our best interests at heart needs professional help.

However, in a CBDC system, the authorities will literally be able to block access to your funds or set conditions for how you use them. Oh, right, there will be laws about that, right? So, who are you going to trust to uphold those laws? That’s right, the very same authorities who hold the purse strings! Seriously, give me a break. I am not saying that every government that issues a CBDC will abuse the power that it gives them, but I am saying that placing complete control in the hands of a single centralised power is insanely dangerous.

Those ‘conspiracy theorists’ harping on about how CBDCs are a smokescreen for introducing a Chinese-style social credit system are actually perfectly sane. They are just putting two and two together and coming up with four. The reality is that CBDCs don’t offer anything that in any way justifies the danger they will place society in. They will eliminate one of the last remaining buffers between self-sovereignty and government overreach.

Of course, the very same mainstream media that has shown its terrifying true colours over the past three years is now enthusiastically trying to portray CBDCs as ‘crypto’, in an effort to make the project appeal to the naive. Meanwhile, smug politicians watch from the bleachers, grinning and rubbing their hands at the thought of even more control over the plebs.

Recognise CBDCs for what they are; a fifth columnist attempt to piggyback on the enthusiasm around crypto to enable an era of unprecedented control and centralisation. Yes, CBDCs are the antithesis of decentralised cryptocurrencies, and we need to realise what is at stake in this war.