The Dangers Of A Central Bank Digital Currency

A logo of the European currency Euro stands in front of the headquarters of the European Central Bank (ECB) in Frankfurt am Main on June 6, 2013, 2013. The European Central Bank held its key rates unchanged, as widely expected, at its regular monthly policy meeting. The bank's new headquarter is to be finished in 2014. AFP PHOTO / DANIEL ROLAND (Photo credit should read DANIEL ROLAND/AFP/Getty Images)

Zero Hedge: In recent weeks Jerome Powell at the Federal Reserve and Christine Lagarde at the European Central Bank have commented on the likelihood of implementing digital currencies in the next years. The positives have been well explained. More transparency, ease of use and lower cost.

The European Central Bank has stated that “a digital euro would guarantee that citizens in the euro area can maintain costless access to a simple, universally accepted, safe and trusted means of payment. The digital euro would still be a euro: like banknotes but digital. It would be an electronic form of money issued by the Eurosystem (the ECB and national central banks) and accessible to all citizens and firms. A digital euro would not replace cash, but rather complement it. The Eurosystem will continue to ensure that you have access to euro cash across the euro area. A digital euro would give you an additional choice about how to pay and make it easier to do so, contributing to financial inclusion alongside cash”.

In the United States, many voices call for a digital dollar to compete with China’s yuan. However, the US dollar is already the world reserve currency, it is used in more than 80% of global transactions while the yuan is used in less than 4%, according to the Bank of International Settlements (the total is 200% as each transaction involves two currencies), and most payments and transfers are already electronic. The euro is the second most used currency and is also mostly through electronic transfers. One can say that the US Dollar and the euro are already “digital”.

All this sounds good. So, why should we worry about a central bank “digital currency”?

Privacy: The central bank would control almost all transactions in a currency and have all the information of how deposits and savings are kept.

Control: A digital currency could open the risk of eliminating all controls on government spending

Opinion: Are we there yet? Are cryptocurrencies going to eliminate the need for central banks? The answer to both questions is no.

Several hurdles ahead for cryptocurrencies:

November 13, 2020: Hedge fund manager warns nations will outlaw cryptocurrencies if prices keep rising here

February 16, 2021: Bank of India set to ban cryptocurrencies here

February23, 2021: Treasury Secretary Yellen warns that bitcoin is unstable and speculative here

March 5, 2021: Biden administrators to study if SEC regulations will be needed for cryptocurrencies here

If governments are given a tool that allows them to spend all they want and take control of the economy, do you really believe they will not use it?

The coming Central Bank Digital Currency (CBCD) will be the first step towards the prophesied cashless society, and the fulfillment of Revelation 13:16-17

See our paper: The 1% and Revelation: Do Not Harm the Oil and Wine HERE