CBDCs will give governments absolute control

Without sounding like doom & gloom or a conspiracy theorist or end of world kind of person, I just want to make people aware about CBDCs (central bank digital currencies) and just report, no hypothesis or opinions, just the facts about what powers governments would have if they launch CBDCs.

CBDCs are form of digital currencies issued and controlled by Central banks. Currently, currency is issued by governments. Central banks will launch an wallet app where you can see your balance and can send money to any other wallet. Technology beneath this will be blockchain.

Why this? It will be 100% secure, impossible to hack and because Central banks having complete control, it will end once and for all problems arise due to cash economy like tax evasion, criminal transactions and transactions damaging to society like bad loans, corruption, etc.

But in process of ending these problems, Central banks essentially get few more powers. It's like having a bodyguard, he may protect you but also now he's the only one who can kill you with greatest ease. (yeah bad analogy)

Now governments can monitor all our transactions. Maybe transactions we don't want to disclose like your recent sex toy purchase.

Governments can now completely control interest rates. Even governments can implement negative interest rates ie they will charge you to keep your money.( funfact- interest rates are already negative in Japan and Europe. 17 trillion $ are already under negative interest rates). 

Governments can control your spending habits. They can limit your spending on certain things. They can just limit amount of transaction on certain things like cigarettes, junk food or just anything.

They can also increase your spending on certain sectors. They can put expiry date on cash and tell that this money can only be spent on certain things like Healthcare or fitness.

This targeted spending strategy can also be used to micro manage inflation and deflation. 

Also governments can promote or manipulate our behavior in certain ways. They may add balance to our wallets if we do certain things like for example wake up early or gets vaccinated or don't post thoughtful articles (cringe). They may also deduct balance if we party more or follow bad habits (as per their definitions). They are already incentivizing and influencing our decision via subsidies and it will be subsidies on steroids if you say.

Now I want you to imagine what it would be like to announce lockdowns and restrictions with CBDCs. Yeah it will be easiest thing to do. Only transactions for groceries that too with nearest store. That's it no more loopholes. 

Let's take a red pill and explore more possibilities. Like blocking your wallet means no means to transact, or what about they will generate your character ID based on what you consume and spend on, what about different tax rates for people in different industries, how about you can't leave the country because you can't make transaction for your flight ticket.

Lastly, these are the only few scenarios I can imagine and leaders have discussed on record in meetings while planning CBDCs. There can be lots and lots of other unintended consequences I am sure.

Look I am not suggesting governments will do that, I am just saying we will be giving these powers to the government and its a fact, Noone can contradict that.

Now you have to decide whether you are willing to surrender these powers or not. 

Akhil Garg

akhilgargdps@gmail.com 

Twitter @gargcapital

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