How Close Are We? Does the FED have authority to issue a CBDC without Congress approval?
The countdown to CBDCs in the U.S. has begun. This programmable money could allow unprecedented government control and 24/7 surveillance of your finances. Are you prepared for programmable digital currencies that could restrict your financial freedom? Learn how to protect yourself now.
CHAPTERS:
0:00 Global Race for CBDC
2:38 European Central Bank
3:42 IMF CBDC Handbook
5:10 Russia’s CBDC Pilot
6:50 FedNow
7:25 U.S. Congress
8:37 Sound Money
TRANSCRIPT FROM VIDEO:
A programmable digital currency that could be rewarded, restricted, or deleted based on a social credit score or a government whim sounded like a thing of utter science fiction just a few short years ago. But sadly, as I sit here today, I can assure you that it is very real and it is only a matter of time before it comes to the United States. Yes, I am talking about CBDCs or central bank digital currencies. CBDC could offer a range of benefits and risks. They say it could offer the general public a risk-free digital money that is free from credit risk, free from liquidity risk, would not replace existing digital money, but would be an addition to it. The mainstream media might have gone quiet on this topic, but for those of you that have already been tracking CBDC progress across the globe are already well aware that the dangers to as we move into 2024 have never been greater. Development has continued at a rapid pace, with over 130 countries exploring the CBDC, representing 98% of global GDP. With many calling it a race for digital currency, there is no doubt that CBDCs will be launching in the United States, but when exactly is still up for debate. So what can we learn from the latest news how we can best protect our financial freedoms and privacy as we know it, we’ll find out together.
Hi everyone, thank you for tuning in to Taylor Made Economics. I’m Taylor Kenney with ITM Trading, breaking down complex financial topics so we can learn and grow together. With most of the world pursuing a central bank digital currency or CBDC, it is no longer a question of if, but when CBDCs are coming to the United States. For those of you who aren’t familiar with them, just imagine a programmable digital currency that would be issued by the Federal Reserve and monitored at any time in a 24-7 surveillance state. Now before we get into all the details, I also want to make sure that you’re aware that ITM has an incredible resource available to you, a free CBDC report. You can click the link in the description below. Make sure you do it so that you have access to all the tools that are available to you, as many would agree that CBDCs are the greatest threat to our financial freedom as it stands today, and I want to make sure that you know how to protect yourself. In new news, the European Central Bank announced last month that they officially have moved from the research phase to the preparation phase of their CBDC rollout. The preparation phase includes creating infrastructure for a digital euro as well as testing and experimentation. Once this phase is complete, we could have a digital euro CBDC live and being issued. These phases of research, preparation, and pilot allow you more time so that you can feel comfortable that every precaution has been taken prior to an official launch. These phases also allow time for the public messaging to make sure that the reason why CBDCs are needed gets out, which is apparently financial equity and inclusion. We have seen this messaging get stronger and stronger with Europe over the last few years, as well as be reflected in the official Now, I’m not sure how requiring a network, phones, and digital literacy is more inclusive, but it did start to make sense to me when I read the International Monetary Fund, or IMF’s, new handbook that was released last month on CBDCs. In the handbook, they state that by implementing a CBDC, more people would have access to credit who maybe didn’t have access before. So maybe by more inclusive and equitable, they mean more people taking on more debt to keep the machine running. This guidebook also calls out complementary policies when deploying a CBDC, such as having digital identification readily available. Like Lynette always talks about, they will make sure that this is rolled out slowly so that you not only get used to the idea, but they will also find ways to integrate new technology so that by the time it happens, it’s already too late and you didn’t even realize what was going on. If you want to hear even more about how this rollout is going to happen, I highly recommend that you watch Daniella Kimboni’s interview this week with Edward Dowd talking about the great reset. It has been proven time and time again that any time some big change is ushered in, it often follows a moment of crisis, such as a stock market crash that would result in ushering in new CBDCs. Check that video out if you haven’t already. So all of this is concerning to say the least, and I hate to be the one to say it, but it’s only the beginning. So far, the privacy concerns haven’t been addressed anywhere in the IMF’s guide or the research white papers that have been conducted. And if the United States launches anything like what we’ve seen with Russia’s pilot, then we know we’re in for even more trouble. The current Russian CBDC pilot has something called a smart contracting feature. The example that they give is, let’s say you as a parent give your child lunch money for school. They leave that day. They go to the school cafeteria. No problem. If they try to spend that CBDC money anywhere else, it would be rejected. But the thing is, is the government is using this in a variety of ways applying to adults as well to make sure that citizens aren’t spending things on unseemly purchases. You can see how this is not only a complete invasion of privacy, but you are relinquishing all control to the government. Combine these CBDC advancements with continual BRICS progress, and we have an even larger concern in the United States. In addition to Russia, China and India, two of the other BRICS superpowers, are all already in a pilot phase of their CBDC launches. As BRICS progresses with their CBDCs, they are laser focused on cross-border digital payments. The obvious concern here being the link that the US dollar has to oil. If oil trade is no longer occurring in US dollars but instead is happening in some other currency, CBDC, within BRICS countries, the US dollar could lose what ever remaining perceived value it has almost immediately. But that’s a whole nother video. So let’s focus on where we are today in the United States in terms of a timeline of a CBDC rollout. The US is still considered to be in a research phase, but with this year’s launch of FedNow, an instant payment infrastructure, it has had many experts questioning if they’re laying the foundation for a CBDC as we speak. To be clear, The Federal Reserve does not currently have the authority to issue a CBDC without Congress’ approval as it stands today. However, the Federal Reserve has been intentionally vague about next steps and while in the research phase, went so far as to seek out contractors for a CBDC pilot, even though it was completely outside of the scope of work that they were approved to do. This has raised serious red flags as a pilot program could be used to progress real testing and development under the guise of research, which could rapidly speed up the CBDC launch process regardless of whatever approvals might currently be needed. As it stands today, the fight over CBDCs in Congress continues. In September, we saw the Digital Dollar Caucus be created, which is a group of self-appointed a CBDC launch faces and how they can overcome them. The eCash Act has also been proposed, which would be a two-part pilot program to launch a CBDC. But it’s not all bad news, there is good news as well. As much as people are pushing forward this, we also have opposition coming in the form of the Digital Dollar Prevention Act. This act would prevent the piloting of any CBDC without explicit approval to do so. While this is good news, I think that the clock is still ticking as financial pressures mount and the government runs out of the tools that they have, it will be increasingly difficult for them to resist creating a CBDC. But the good news is that it does buy us more time to get a strategy in place and to make sure that we’re getting the word out. This is a topic that keeps me up at night. I wanna make sure that my loved ones are protected. Like I mentioned earlier, we have a free report on CBDCs that you can access by clicking the link in the description below. I highly recommend that you do that so that you can be prepared on how to protect yourself and all of our financial freedoms moving forward.
Also, if you haven’t already liked or subscribed, please do so now. It really helps us get the word out and we know that the resistance and the change is going to come from us. I hope that this was helpful. As always, I’m Taylor Kenney with ITM Trading. Until next time.
SOURCES:
https://www.youtube.com/watch?v=le8Me8AfK8k
https://www.atlanticcouncil.org/cbdctracker/
https://www.youtube.com/watch?v=HF8AxQWUxPg
https://mooney.house.gov/congressman-mooney-introduces-the-digital-dollar-pilot-prevention-act/
https://finance.yahoo.com/news/dueling-cbdc-bills-debated-congressional-162408390.html?guccounter=1
https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.pr231018~111a014ae7.en.html
