DANGER: US Treasury Just Published a Working Paper Pushing for Central Bank Digital Currency to Counter ‘Bank Runs’

The Office of Financial Research (OFR) is the independent bureau within the United States Department of the Treasury which was formed in response to the financial crisis of 2007-08 — and the subsequent Great Recession that ensued. The OFR’s responsible for collecting financial data and making recommendations to the Treasury’s Financial Stability Oversight Council (FSOC) based on that data, who then “responds to emerging risks to the stability of the United States’ financial system.”

This is the same department, who for the last 2 years, oversaw one of the largest transfers of wealth in the history of the world — and they approved every bit of it. Their influence in the global economy cannot be understated which is why the OFR’s recent white paper is particularly troublesome.

On July 11, 2022, the OFR published a working paper advocating for a Central Bank Digital Currency. In their abstract, the authors claim that a CBDC will counter against bank runs by “monitoring the flow of funds into CBDC” which “allows policymakers to identify and resolve weak banks sooner, which also decreases depositors’ incentive to run.”

While this may seem like a good way to prevent a bank run, the fact that a bank run is happening at all means that the proverbial s**t is hitting the fan. The fact that the OFR is preparing for one is unsettling enough but the fact that their answer is a CBDC should make everyone start to pay attention.

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