You know, there’s been one thing that commonly comes up in the news which concerns me, but I keep ignoring it, and that is the central bank digital currency.
Just today, I read a story about the digital euro and its problems.
How the European Union is not actually on this project as much as they should be, so to speak. They haven’t advanced it. It’s certainly not in the project phase yet.
We all know why we don’t want this digital currency, either a digital euro or a digital dollar. It’s because it would allow the central bankers to have complete control over our spending if they wanted to.
Can you imagine being paid with a dollar that expires in 90 days if you don’t spend it? Or perhaps it has more purchasing power if you spend it on certain items?
It’s really unthinkable to have central planners with this much control over our spending.
Now, many of these stories we read about the central digital currency are written simply to get views…sell through fear.
Yet, I have no doubt central planners are dumb enough to think they could actually steer the market better than the actual market forces themselves.
Do you remember when COVID hit and the Federal Reserve dropped their interest rates to zero and it changed nothing?
The Federal Reserve’s influence is weak compared to what it used to be.
Global forces, and economic realities have proven themselves much stronger, more complex.
Just letting out some interest rate rope doesn’t change things like it used to. I remember back in the 90s when Alan Greenspan could get on TV and say five words. And the markets would completely turn around.
Today, when the Fed chair speaks, (whether you’re talking about Powell or Kevin, who is coming on board)
It doesn’t change the needle all that much. We always hear the news stories about it when they talk, but no one really listens.
So what are we supposed to do about this story of the central bank digital currency other than just being mad about it?
I think the first thing to do is to realize that at some point it is going to be tried and it needs to fail miserably for them to back away from it.
One advantage that’s on our side is quantum computing. If quantum computers can…become available to us fast enough then the hackers will have a central point of attack.
And the government IT folk won’t be able to keep up.
I guess our duty would be this, to go find a company who is involved in quantum computing and is financially profitable, (which would be hard to do) invest heavily into it.
Perhaps the quantum computer can get here before the central bank digital currency and prevent us from the dystopian ideal.
Let’s just hope that the quantum computer doesn’t allow the hackers to break all of our encrypted passwords and steal all our money which is already inside of our “non-digital” digital accounts.
When you think about it, central bank digital currency has been here for a while.
They just don’t have as much control as they would like.
Signing off, Jonathan.