Utah Freedom Coalition

Is the CBDC Ushering in Our Enslavement?

By: Charles

Like most of you, I was surprised and angered when, under direction of the Canadian government, banks froze bank accounts set of the truckers protesting Covid-19 requirements.  It seemed unbelievable that a government elected by the people could tread on individual rights for subjective political reasons.  In addition, under pressure from the Canadian government, funds raised through Gofundme were not given to the trucker’s group, instead were held, and later refunded to contributors. If implemented, Central Bank Digital Currency (CBDC) could be used for greater governmental control and could be far more invasive.

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Currency is fiat money.  “Fiat money is a government-issued currency that is not backed by a physical commodity like gold or silver. It is considered a form of legal tender that can be used to exchange goods and services. Traditionally, fiat money came in the form of banknotes and coins, but technology has allowed governments and financial institutions to supplement physical fiat money with a credit-based model in which balances and transactions are recorded digitally.”[1]

CBDC is the digital form of a country’s fiat currency that is also a claim on the central bank. Instead of printing money, the central bank issues electronic coins or accounts backed by the full faith and credit of the government.  It may or may not use blockchain or distributed ledger technology.  It is a direct form of transferring funds between consumers and service/product providers that does not require an intermediary like a bank or credit card company – basically digital cash.

As of this writing, CBDC is being used in 8 Caribbean countries, 1 African country, and is extensively piloted in China. In January the Federal Reserve issued a paper on CBDC, https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf, and asked for public comment; the time for public comment has ended. In March 2022, President Biden issued an executive order which directed Congress to “assess the technological infrastructure and capacity needs for a potential U.S. CBDC.”  In August the Fed announced its intension to continue looking into CBDC and generate potential pilot plans

CBDC can take one of 2 forms –

Digital tokens/coins utilizing blockchain and/or distributive technology and digital wallets which could be anonymous.

Digital accounts – similar to a bank or credit card account where CBDC is tracked digitally and there could be full transparency with regard to where and to whom CBDC is spent.

Proponents for CBDC generally site the following advantages to implementing CBDC:

  • Faster and cheaper flow of money, especially cross-border
  • Financial inclusion – a small but significant portion of the population does not have access to a bank account
  • Safest form of digital money – it is a claim on the central bank.
  • Simplifies the implementation of monetary and fiscal policy. (Depending on one’s point of view this could be seen as a concern)

Concerns about implementation of CBDC

  • Without the need for a bank as intermediary, overall bank deposits could go down decreasing the loan capability of the banks. This would likely increase loan costs and availability to bank customers.
  • In the event of financial panic CBDC would become the safest place to store wealth potentially causing a run on the banks
  • Privacy vs Law enforcement
  • Potential restrictions on individual rights
  • Cybersecurity

In the referenced paper the Federal Reserve addresses the first concern and the consumer privacy concern by suggesting that CBDC be issued through chosen intermediaries such as a bank or credit company. That would pretty much minimize the first advantage as the intermediary would likely charge a fee.  Consumer privacy is addressed below.

In that same paper, in order to detect and prosecute money laundering, graft, extortion, etc., the Federal Reserve is only considering CBDC accounts, not digital tokens.

Included Principles outlined by the Federal Reserve to guide consideration of a CBDC:

“Any U.S. CBDC should, among other things:

  • provide benefits to households, businesses, and the overall economy that exceed any costs and risks;
  • yield such benefits more effectively than alternative methods;
  • complement, rather than replace, current forms of money and methods for providing financial services;
  • protect consumer privacy;
  • protect against criminal activity; and have broad support from key stakeholders.”[2]

Here are some concerns regarding the principles outlined by the Fed:

This is not the first time the Federal Reserve and United States government have presented guidelines and safeguards that were later removed – see the July 1944 Bretton Woods conference in which the US guaranteed to base its dollar on gold, become the international Reserve Currency[3], and other currencies were pegged on the US dollar’s value, with the understanding that countries could exchange their reserve dollars for gold.  Primarily to finance the war in Vietnam and the Great Society program, the US printed money not based on gold, but on US Treasury debt exceeding what had been the understanding of Bretton Woods, – thus diminishing the gold backing of the dollar and devaluing the international currency reserves.  Then, while continuing to print non-gold-based dollars far in exceeding what had been outlined by Bretton Woods, the gold standard was completely abandoned in 1971 because allowing conversion of the dollar to gold was no longer feasible.  The gold-based dollar was replaced with fiat currency based solely on paper assets – US Treasury debt. 

Just because the guideline specifies that the anticipated CBDC will “complement, rather than replace” does not mean that sometime in the future, possibly near future, CBDC would be designated as the ONLY form of legal tender in the US.

Even if going through an intermediary, what is the balance between consumer privacy and protecting against criminal activity? Would going through an intermediary stop the IRS?  Would going through an intermediary stop a government entity, law enforcement or otherwise, to monitor and possibly restrict access for certain types of purchases such as a red meat, or a fossil fuel vehicle justified by national or world “security”?  The recent intrusion of the national government in pushing Visa, Amex, and Mastercard to create a new, distinct “gun sales” category is a perfect example of how unimportant consumer privacy is when in conflict with a perceived threat of the day.  That action certainly didn’t have “broad support from key stakeholders”. PayPal, possibly a future CBDC intermediary, is now infamous for often restricting, withholding, and/or freezing accounts purely based on whatever its current agenda is.   it is easy to see how, especially combined with AI, the power to track and control transactions at a granular level can be abused for political or corrupt purposes and difficult to establish reliable safeguards.

In keeping with the Biden Administration government by executive order, the administration is actively looking for ways to move forward with a US CBDC and use it to silence or restrict legal business without congressional support.[4]

Although the Federal Reserve, the Bank of England, the European Central Bank[5], and others have expressed no interest in relying on a foreign CBDC and talk of multi-CBDC platforms, CBDC is part of an international agenda for at least some of the world Central Banks.

Agustin Carstens, general manager of the Bank for International Settlements (basically the central bank for the central banks), said:

“In cash we don’t know who’s using a $100 bill today and we don’t know who’s using a 1,000-peso bill today.  A key difference with the CBDC is that Central Bank will have absolute control on the rules and regulations that will determine the use of that expression of Central Bank liability, and also will have the technology to enforce that.  Those two issues are extremely important and that makes a huge difference with respect to what “cash” is”


For a list of international CBDC Projects refer to an article by The Sharp Edge found in Corey’s Digs.  https://www.coreysdigs.com/technology/the-rise-risks-of-central-bank-digital-currencies/


[1] Shobhit Seth; What Is a Central Bank Digital Currency (CBDC)?; www.Investopedia.com

[2] https://www.federalreserve.gov/cbdc-faqs.htm

[3] https://www.investopedia.com/terms/r/reservecurrency.asp

[4] https://thefederalist.com/2021/02/19/biden-administration-prepares-way-for-banks-to-refuse-service-to-democrats-enemies/ 

[5] https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220218_1~938e881b13.en.html

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