A few involved at the Bank of Canada have spoken about the idea of a CBDC (Central Bank Digital Dollar). Let me tell you this is a good thing for Crypto.
Due to the substantial threat of Facebooks Libra coin at the time, the Central Bank of Canada has decided to not only research, but heavily consider the creation of it's own digital dollar.
This would be the CBDC, which would be spent using an apparent UAD (Universal Access Device) allowing even remote users access. Also within the plans of a digital dollar would be a distributed UBI or Universal Basic Income for all Canadian residents.
After reading through a ton of articles and research papers from the Bank of Canada, it became obvious that this wasn't something that could just happen. It seems there were a lot of obstacles to removing cash and perhaps it's my conspiracy theorist type mindset but all of those crucial systems that would essentially make the transition difficult were effectively shutdown or slowed down from the threat of Covid! Now many of these businesses and models are facing bankruptcy or closure due to loss of income.
Wow, what a coincidence... Now in 2021 if we see a Central Bank issued digital dollar in Canada I think we can all agree there was a deeper agenda then public health concerns, but let's worry about all that later. There's big things happening in the Cryptoverse and we need to stay vigilant.
So why exactly does the Bank of Canada want to make a digital dollar now, especially after all that smack talk in the past about Bitcoin and "Criminal payment systems" etc.?
The answer is actually quite simple. They are scared, terrified even of losing control over "Monetary Policy". Facebook's Libra coin posed a HUGE threat to any and all current standing governments and Central Banking entities. How you ask? Well, Central Banks rely heavily on us leaving our money in their accounts so they may use it to lend out and gain massive interest rates. With the emergence of Cryptocurrency there has been a lot less local dollars sitting in Central Banks around the world and in Canada.
Now with high interest yields in Crypto becoming more and more mainstream the Banks appear to be rushing to create a Central Digital Dollar for a few main reasons.
- Number one would have to be the ultimate threat of losing control over the Country's Monetary Policy as the policies would have to adapt to outside foreign currency policy and protocol such as Bitcoin, Ethereum, Litecoin or even another County's Digital dollar if it became globally accepted. This could absolutely devastate all that they have worked toward over the past 700 years or so when it comes to Central Banking.
- The loss of assets and liquidity to lend against. With more and more people pulling money from their bank accounts to hold in Cryptocurrency accounts the bank loses more and more lending power. Think of it this way, for every $1.00 withdrawn from an account they have to essentially cancel $10 worth of lending power. This means no more 25% interest rate collection from using all of our money for their own personal gain.
- Abolishing or removing cash from society can have massive and destructive effects on past, current and future business dealings. This could also hurt many communities without access to technology, internet etc. Not to mention the backlash that the banks could suffer publicly for doing such a thing.
A huge percentage of the population still believes "cash is king" but it's only because they don't understand simple economics or their own banking system.
All the evidence needed to support the positive effects that Bitcoin and other peer to peer networks have had on society can be read in the Central Banks worried words. What an amazing time to be alive!!!!
Without making this too long and drawing it out, I want to say in conclusion that i believe a Country issued Digital Dollar could be an amazing bridge for Cryptocurrency reaching the masses as well as promoting self-education of digital assets. However as all things bank related I think this should only be a small portion of how we do things moving forward as it gives us leverage over the banks to do better this time around!
So let's pace ourselves and make the banks work for it, let them come to our expectations this time or fall to the pits of hell where they belong!
Thanks for reading! make sure to follow if you enjoy the content, lot's more to come!
Check out my website for ways to earn FREE Bitcoin and other crypto :) https://www.blueskycrypto.ca/freebtc
