Central Bank Digital Currency Is The Endgame, Part 1
Authored by Iain Davis via Off-Guardian.org,
Central bank digital currency (CBDC) will end human freedom. Don’t fall for the assurances of safeguards, the promises of anonymity and of data protection. They are all deceptions and diversions to obscure the malevolent intent behind the global rollout of CBDC.
Central Bank Digital Currency is the most comprehensive, far-reaching, authoritarian social control mechanism ever devised. Its “interoperability” will enable the CBDCs issued by various national central banks to be networked to form one, centralised global CBDC surveillance and control system.
Should we allow it to prevail, CBDC will deliver the global governance of humanity into the hands of the bankers.
CBDC is unlike any kind of “money” with which we are familiar. It is programmable and “smart contracts” can be written into its code to control the terms and conditions of the transaction.
Policy decisions and broader policy agendas, restricting our lives as desired, can be enforced using CBDC without any need of legislation. Democratic accountability, already a farcical concept, will become literally meaningless.
CBDC will enable genuinely unprecedented levels of surveillance, as every transaction we make will be monitored and controlled. Not just the products, goods and services we buy, even the transactions we make with each other will be overseen by the central bankers of the global governance state. Data gathering will expand to encompass every aspect of our lives.
This will allow central planners to engineer society precisely as the bankers wish. CBDC can and will be linked to our Digital IDs and, through our CBDC “wallets,” tied to our individual carbon credit accounts and jab certificates. CBDC will limit our freedom to roam and enable our programmers to adjust our behaviour if we stray from our designated Technate function.
The purpose of CBDC is to establish the tyranny of a dictatorship. If we allow CBDC to become our only means of monetary exchange, it will be used enslave us.
Be under no illusions: CBDC is the endgame.
WHAT IS MONEY?
Defining “money” isn’t difficult, although economists and bankers like to give the impression that it is. Money can simply be defined as:
A commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed. It circulates from person to person and country to country, facilitating trade, and it is the principal measure of wealth.
Money is a “medium”—a paper note, a coin, a casino chip, a gold nugget or a digital token, etc.—that we agree to use in exchange transactions. It is worth whatever value we ascribe to it and it is the agreed value which makes it possible for us to use it to trade with one-another. If its value is socially accepted “by general consent” we can use it to buy goods and services in the wider economy.
We could use anything we like as money and we are perfectly capable of managing a monetary system voluntarily. The famous example of US prisoners using tins of mackerel as money illustrates both how money functions and how it can be manipulated by the “authorities” if they control the issuance of it.
Tins of mackerel are small and robust and can serve as perfect exchange tokens (currency) that are easy to carry and store. When smoking was banned within the US penal system, the prisoners preferred currency, the cigarette, was instantly taken out of circulation. As there was a steady, controlled supply of mackerel cans, with each prisoners allotted a maximum of 14 per week, the prisoners agreed to use the tinned fish as a “medium of economic exchange” instead.
The prisoners called in-date tins the EMAK (edible mackerel) as this had “intrinsic” utility value as food. Out-of-date fish didn’t, but was still valued solely as a medium of exchange. The inmates created an exchange rate of 4 inedible MMAKs (money mackerel) to three EMAKs.
You could buy goods and services in the Inmate Run Market (IRM) that were not available on the Administration Run Market (ARM). Other prison populations adopted the same monetary system, thus enabling inmates to store value in the form of MAKs. They could use their saved MAKs in other prisons if they were transferred.
Prisoners would accept payment in MAKs for cooking pizza, mending clothes, cleaning cells, etc. These inmate service providers were effectively operating IRM businesses. The prisoners had voluntarily constructed a functioning economy and monetary system.
Their main problem was that they were reliant upon a monetary policy authority—the US prison administration—who issued their currency (MAKs). This was done at a constant inflationary rate (14 tins per prisoner per week) meaning that the inflationary devaluation of the MAKs was initially constant and therefore stable.
It isn’t clear if it was deliberate, but the prison authorities eventually left large quantities of EMAKs and MMAKs in communal areas, thereby vastly increasing the money supply. This destabilised the MAK, causing hyperinflation that destroyed its value.
With a glut of MAKs available, its purchasing power collapsed. Massive quantities were needed to buy a haircut, for example, thus rendering the IRM economy physically and economically impractical. If only temporarily.
Perfectly usable “money”
THE BANKERS’ NIGHTMARE
In June 2022, as part of its annual report, the BIS published The future monetary system. The central banks (BIS members) effectively highlighted their concerns about the potential for the decentralised finance (DeFi), common to the “crypto universe,” to undermine their authority as the issuers of “money”:
[DeFi] seeks to replicate conventional financial services within the crypto universe. These services are enabled by innovations such as programmability and composability on permissionless blockchains.
The BIS defined DeFi as:
[. . .] a set of activities across financial services built on permissionless DLT [Distributed Ledger Technology] such as blockchains.
The key issue for the central bankers was “permissionless.”
A blockchain is one type of DLT that can either be permissionless or permissioned. Many of the most well known cryptocurrencies are based upon “permissionless” blockchains. The permissionless blockchain has no access control.
Both the users and the “nodes” that validate the transactions on the permissionless blockchain network are anonymous. The network distributed nodes perform cryptographic check-sums to validate transactions, each seeking to enter the next block in the chain in return for an issuance of cryptocurrency (mining). This means that the anonymous—if they wish–users of the cryptocurrency can be confident that transactions have been recorded and validated without any need of a bank.
Regardless of what you think about cryptocurrency, it is not the innumerable coins and models of “money” in the “crypto universe” that concerns the BIS or its central bank member. It is the underpinning “permissionless” DLT, threatening their ability to maintain financial and economic control, that preoccupies them.
The BIS more-or-less admits this:
Crypto has its origin in Bitcoin, which introduced a radical idea: a decentralised means of transferring value on a permissionless blockchain. Any participant can act as a validating node and take part in the validation of transactions on a public ledger (ie the permissionless blockchain). Rather than relying on trusted intermediaries (such as banks), record-keeping on the blockchain is performed by a multitude of anonymous, self-interested validators.
Many will argue that Bitcoin was a creation of the deep state. Perhaps to la