The Biden Administration and Federal Reserve are actively exploring the potential of a programmable, trackable, and easily manipulated digital currency. Dubbed a Central Bank Digital Currency (CBDC), this new form of digital currency would exist exclusively in a digital form and come with a number of government-imposed rules.
The Biden Administration has already released a sweeping executive order that directs several federal agencies to crack down on digital assets and study the potential of a CBDC. Additionally, the White House has formed policy objectives for a US-based CBDC system and various working groups, speeches, and coordinated efforts with non-government groups are underway.
A CBDC would not be a digital version of the existing paper-based dollar, but rather an entirely new currency. It would be programmable, traceable, and designed to promote various left-wing social goals, such as improving “financial inclusion” and “equity.” Every transaction made using a CBDC could be easily traced to individual users by financial institutions, government agents, and/or the Federal Reserve.
Under most proposed CBDC designs, nearly all forms of ownership of CBDC money would be strictly limited. Only large institutions such as banks, the federal government, and the Federal Reserve would have ownership of CBDCs. This means that people would not own digital money, and they would have very little if any, privacy.
The current banking system allows people to deposit money into a checking or savings account, but they immediately cease to own the money. The cash instead becomes the property of the bank. Under a CBDC system, banks or the Federal Reserve would own all of the digital money.
The implementation of a programmable CBDC could have far-reaching implications. It could lead to greater economic equality and financial inclusion, but it could also potentially lead to a loss of freedom and privacy.
As the Federal Reserve and Biden Administration continue to explore the potential of a CBDC, it is important that Americans stay informed and engaged in the process. It is essential that the government take time to carefully consider the potential impacts of a CBDC and ensure that it is designed in a way that protects freedom and privacy.
