Essay: Beware of Central Bank Digital Currency (CBDC)

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Beware of Central Bank Digital Currency (CBDC)
By Nancy Thorner

A CBDC is a government-backed digital currency issued by a central bank — a purely digital form of money, promoted as a tool that could make transactions easy between individuals, companies and the state.

But such centrally controlled digital money is also programmable. It could be set to expire at a given time, or restricted to particular kinds of spending — and all transactions would be trackable by the federal government.

As David Rodeck Contributor to Forbes wrote about digital currency:

Digital currency is any currency that’s available exclusively in electronic form. Electronic versions of currency already dominate most countries’ financial systems. What differentiates digital currency from the electronic currency that’s already in Americans’ bank accounts is that digital currency never takes physical form.

You can go to an ATM right now and easily transform the electronic record of your currency holdings into physical dollars. Digital currency, however, never leaves a computer network, and it is exchanged exclusively via digital means.[1]

Risks of CBDC

On February 22, 2023, Norbert Michel and Nicholas Anthony wrote the following study for Cato: The Risks of CBDCs - Why Central Bank Digital Currencies Shouldn’t Be Adopted:

Governments have long recognized that freezing someone’s financial resources is one of the most effective ways to lock them out of society. However, a CBDC could make the process easier and faster for governments by establishing a direct line between citizens and the government itself.

While interest rates are typically thought of in terms of positive rates, a CBDC could allow policymakers to also set negative rates. In effect, a negative interest rate would result in people losing money. Proponents argue that this strategy could be implemented to spur spending.

The programming capabilities of a CBDC could mean that people would be prohibited from buying certain goods or limited in how much they might purchase. For example, policymakers could try to curb drinking by limiting nightly alcohol purchases or prohibiting purchases for people with alcohol related offenses.[2]

Biden and digital CBDC

In an article written by Heartland’s Justin Haskins for Fox News dated April 25, 2023, “Biden Administration Quietly Planning Future Where You Don't Own Money”, "Biden's future would mean that you will not own CBDC money -- you’ll also have no privacy -- for a CBDC would not be a digital version of the existing paper-based dollar, but rather an entirely new currency that would exist exclusively in a digital meaning an electronic, non-physical form."

Haskins relates how under President Biden the White House and the Federal Reserve have already "started to lay the groundwork for a programmable, trackable, easily manipulated digital currency." It was in March of 2022 that Biden issued a "sweeping executive order directing numerous federal agencies to study the potential development of a central bank digital currency (CBDC)."

Biden likewise directed the leadership of the National Economic Council, National Security Council, Office of Science and Technology Policy and the Treasury Department to "meet regularly" with the Federal Reserve to further design a potential CBDC.

As Hakins wrote: "Under the various CBDC proposals floated by the Biden administration and Federal Reserve, a U.S. CBDC would be programmable, traceable and designed to promote various left-wing social goals, such as improving financial inclusion and equity. It would also be designed to help with "transitioning to a net-zero emissions economy and improving environmental justice."

CBDC and state legislatures

In an article by Arsenio Toledo dated Friday, March 17, 2023, State legislatures are sneakily introducing amendments to laws that would pave the way for CBDC domination, it was started that states are overhauling their UCC supposedly to introduce a new article that will deal with digital assets such as digital currencies. UCC would make it increasingly easier for companies to transact business across state lines, therefore making it easier for states to harmonize laws regulating businesses.

13 Republican-leaning states are introducing amendments: Arizona, Arkansas, Indiana, Kentucky, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, Tennessee, Texas and West Virginia.

Ten other states overhauling their UCC are where Democrats have control over the legislature: California, Colorado, Hawaii, Maine, Massachusetts, Nevada, New Mexico, Rhode Island and Washington.

The District of Columbia is also amending its UCC.

One state, South Dakota, has defeated efforts to amend the UCC. "Gov. Kristi Noem recently vetoed the amending of the UCC, rightly claiming that its passage would be a precursor for the federal government to control our currency and thus control people."

On Monday March 20, 2023, Florida Governor Ron DeSantis likewise proposed a law that would prohibit the use of a federally adopted central bank digital currency as money within the state.

As stated by DeSantis: "Today’s announcement will protect Florida consumers and businesses from the reckless adoption of a 'centralized digital dollar' which will stifle innovation and promote government-sanctioned surveillance."


While the U.S. has not yet created a CBDC, the Biden administration and the Federal Reserve are currently assessing the potential risks and benefits of a central bank digital currency.

Local banks are important in U.S. There are 4,800 banks in U.S. which serve local communities vs. nationalized banks. As such, feds shouldn't be playing a role in creating a CBDC currency.

Digital currency should be of great concern to Americans, for there is no cash equivalent. You wouldn't be able to physically own it, for all digital money will be owned by someone else. You would only be able to use it.

Once a digital currency is in place, government and/or Federal Reserve officials would have more power than ever to control, track and coerce individuals and U.S. businesses.

Most Americans don't want government and the Fed to have such an immense amount of power over their lives. The only question is whether enough Americans will stand up against the digital dollar before it's too late to do so.

As for the digital dollar, might it be the last hurdle to complete to enable control of the population, for part of the Great Reset proposed by the WEF (World Economic Forum) wants you to own nothing and be happy about it?