Whenever the White House says that it is working on a plan that would transform a vital part of the American economy, and that the administration is doing so with the “ultimate urgency,” it goes without saying that the press should pay close attention to what it says. what is happening. going
Most importantly, the press must fully and enthusiastically inform the public of the potential risks associated with such a proposal.
Unfortunately, that is not happening today, and the effects of media neglect could reverberate for decades to come.
On March 9, the Biden administration released a executive order (EO) directing a long list of federal agencies to study digital assets and come up with numerous reports on their use and proposals to regulate them. Much of the executive order focuses on cryptocurrencies such as Bitcoin and Ethereum, which are powered by blockchain technology and have become increasingly popular with many investors and consumers in recent years.
But there is an even more important part of EO: President BidenJoe BidenDefense & National Security: Russia’s Tenuous Grip Slips On Money: Biden’s Economic Approval Falls Deeper Balance/Sustainability: US Agency Killed 400,000 Native Animals in 2021 MORE has instructed the federal government and the Federal Reserve to lay the groundwork for a potential new US currency, a digital dollar.
If the United States were to adopt a digital currency like the one discussed in Biden’s executive order, it would be one of the most dramatic expansions of federal power ever made, one that could put individuals and businesses in grave danger of losing their social and economic rights. freedoms
Among other important actions, the White House executive order directs several federal agencies, including the Treasury Department, to study the development of a new central bank digital currency (CBDC) and produce a report within 180 days of the EO to discuss the potential risks and benefits of a digital dollar.
The order further directs the Treasury Department, the Attorney General’s Office and the Federal Reserve to work together to produce a “legislative proposal” to create a digital currency within 210 days, roughly seven months.
A digital dollar would not simply be a digital version of the existing US dollar, but an entirely new currency that would, at least initially, exist alongside the current currency. Similar to cash, CBDC would be used to pay for goods and services and would likely be managed by the Federal Reserve, the central bank of the United States.
However, unlike today’s dollar, a central bank’s digital currency would not exist in physical form, meaning you would not be able to go to a bank or ATM and withdraw it.
It is important to understand that the digital dollar no be similar to cryptocurrencies like Bitcoin. Cryptocurrencies operate on blockchain technology, which is decentralized by design. No group or individual can truly control cryptocurrencies once they are launched.
Digital dollars, on the other hand, would be traceable and programmable. The Federal Reserve (or some other designated entity) would have the ability to create more digital dollars as it sees fit, and depending on how the legislation establishing the currency is written, the dollars could be formulated to have various rules and restrictions. in your design.
For example, a digital dollar could be designed to restrict the use of fossil fuels, give people bonuses for spending at specific businesses, enact de facto price controls by prohibiting users from spending too much on specific products, or even redistribute wealth. .
In one report On the development of a central bank digital currency published by the Federal Reserve in January, the Fed outlined some examples of possible “design options” for a digital dollar, including that “a central bank could limit the amount of CBDC that a user end could hold.”
There is every reason to believe that Biden’s plan for a digital dollar involves a design that will give the federal government and/or the Federal Reserve control over much of society and the economy.
Biden’s executive order states that the CBDC and other policies governing digital assets must mitigate “climate change and pollution” and promote “financial inclusion and fairness.”
In fact, “financial inclusion” is mentioned six times in Biden’s order, and “equity” and “climate change” are mentioned four times each.
Furthermore, in a background call With reporters about the executive order, a “senior administration official” (interestingly, the name was redacted from the White House transcript) promised that by creating a new digital currency, the Biden administration “will continue to partner with all stakeholders, including industry, labour, consumer and environmental groups, allies and international partners”.
Why would labor unions, industry organizations, and environmental groups be involved in the development of a new currency, unless, of course, there is a plan to program that currency to further various causes of concern to special interest groups?
Even more surprising, in a 2021 Q&A on the development of a digital dollar, David Andolfatto, senior vice president and economist at the St. Louis Fed’s Research Division, was asked if the Fed could ” make sure [the public] that these digital currencies will never be used to tell us when, how or where our money can be spent?
“In life one cannot give absolute guarantees of anything,” Andolfatto replied before suggesting that “the best we can hope for” is that Congress “responds to the concerns of the electorate” about privacy.
If the Fed has no plans to use a future central bank digital currency to control the behavior of Americans, Andolfatto’s response is incredibly strange, to say the least.
It is clear that the Biden administration and the Fed are working together to create a controllable, traceable and programmable digital currency. And if they are successful, life in America may never be the same again.
justin Haskins (Jhaskins@heartland.org) is the director of the Socialism Research Center at the Heartland Institute and co-author of the New York Times bestselling book “The Great Reset: Joe Biden and the Rise of 21st Century Fascism.”