A few months ago, we discussed the emergence of the DCE, China’s new digital currency, and wanted the cryptocurrency guidelines, but under the full control of the Central Bank of China, and predicted the arrival of the other digital currencies in the rest of the central banks, CBDCs. Well, this September they have already presented the same in partnership with the CBDC identification, although the pattern that all currencies will follow is the identification itself with the current legal tender, making a gradual change.
This emergence of currencies is neither fortuitous nor the product of pressure from existing cryptocurrencies, but as a result of the need to provide a solution to the global financial crisis. The end of the pandemic has already been predicted by politicians and financiers, which is curious, but just with the entry of the new digital currencies.
When the world is told about CBDC, everyone thinks of something novel and revolutionary that will tend to control us much more, or on the contrary that will establish anarchic liberalism. Well, reality is far from some of these concepts. Digital currency has been between us for decades, and in recent times and taking advantage of the pandemic has already tried to make the global immersion in the digital payment system, I talk about credit cards, wallet cards, cell phones, …. in short, any means of payment that does not involve banknotes and coins.
Society identified cryptocurrencies as something very different, and it was because it was toy paper not subject to real value, simply speculative, or what is defined in the financial world, a digital pyramid. But the digital currency was already used by everyone, and with an important element, a control of the payment system with many fallacy, such as the traceability of the wallet money.
For lovers of anarchic liberalism, banknotes offered that possibility of tax evasion and government control, or at least in some currencies, as the dollar has had its traceability system for the EDF for decades now.
But digital payment management needed one more step, coding that would allow central banks to know any type of transaction that could be executed, and with the new CBDCs that that is achieved. There will be no transaction that is left out of the financial controls of the states, thus justified the non-need of the blockchain platform because they use their own and without perception for the client, as this September already reported by the banks.
The next step will be the removal of paper currency, arguing whatever you want, modernization, carrying the virus, carrying thousands and thousands of bacteria, or even that it has traces of narco-toxins, and everything is true, but not the cause of its disappearance.
WHY CHANGE NOW
Just in the midst of a government financial crisis, that is, a crisis that mainly affects central banks, not individuals, but indirectly, the exit of new currencies will serve to alleviate and cushion some of the existing debts, bring out all illicit or uncontrolled funds by central banks, and eliminate uncomfortable funds such as dollars held by third countries that have the weight of isolationimposed by the US.
Countries with this measure may reduce their debts or raise funds that will serve no less than 15%, although in countries or territories with a high degree of tax evasion such as Europe this measure may lead to a recovery of more than 30% of the financial flow; and for countries whose currency has been a haven for all kinds of transactions and tax havens,, such as thedollar, this can account for up to 80%, which would save the most indebted economies and that the world cannot yet afford to fall.
This is the true spirit of CBDCs, the solution to the financial crisis, so that governments can continue their activities with little change, although they will also be partly affected, so the provision itself will ensure the partial decline of certain corruptings.
All illegal structures will be harmed by the new situation and will have to seek solutions to the new provisions and barriers imposed on them, but there is always that “law-made, cheated” thing. And even if it is considered a foolproof system, it still has its fallacy, even more than the previous one, and will leave it to third-party central banks the ability to integrate into any country’s financial networks legally and cleanly.
In all this, I do not mean that CBDCs are the salvation of the planet, but the salvation of this financial crisis caused by the very activity of increasingly corruptgovernments. But this will serve to give a respite to the financial system of no more than 25 years, then we will return to the same situation but seek a solution to the indebtedness of the states.
I left for the last point the completion of the pandemic and its linkage to CBDCs. Well, the reality is that no non-medical expert could predict the end of the pandemic. The pandemic has been politically notified with the aim of making the necessary changes to financial structures without them having to continue to withstand the stress to which they were subjected in a fully active economic system. The paran has served to make adjustments, and now with financial transformation they will lift the pandemic, but let no one believe that Don Covid is not still there, but will eliminate the state of psycho-crisis developed, and it will become a disease more than many who arrived and stayed, like HIV, V1H1, Influenza, … . There you have why you know the end date of the pandemic and why CBDC is the solution.