Could Cbdcs Be Successful
Our analysts think so. Of course, the Fed and other central banks would need to reassure households and companies that their privacy would be appropriately and rigorously protected. But when it comes to legality, stability and trust the three main advantages of public-sector systems the Fed and the dollar score highly. As a result, it is our analysts view that the US central bank should have few problems in achieving widespread use of a CBDC, at least domestically, if it determined that there was a need for one.
Doug Casey The One Thing You Should Own
It’s a great concept to keep the Big Photo in mind, even while setting about organisation as typical. Here’s a very short summary, going from 30,000 feet right down into the trenches. My view of the economy has constantly been long termperhaps overly so. The Ascent of Man started about 14,000 years back at the end of the last Ice Age it’s going to continue for 2 factors: First, not just have science and innovation been intensifying at a speeding up rate since Day One.
That will likely remain true for a long time to come. Second, just like a squirrel that understands winter season is coming, the typical human is genetically configured to produce more than he takes in and tries to conserve the difference. That constructs capital. So the world naturally tends to get richer. On the other hand, the biotech revolutionjust one of a half-dozen locations where innovation is advancing at the rate of Moore’s Lawmay allow you to live a very long time.
On the other hand, Western Civilization has remained in decline considering that about 1913, and its descent is speeding up. The US peaked relative to other nations in the mid- ’50s, began declining in the early ’70s, and is now moving into an existential crisis. So maybe the long term isn’t so rosy after all.
What Fedcoin Will Do To Bank Reserves
Currently, when the Fed does Quantitative Easing , they create bank reserves. When FedCoin becomes a reality, they can replace bank reserves with FedCoin.
The Primary dealer banks will likely have digital wallets as well. They’ll receive specifically programmed Fecoin that behaves like bank reserves. You too will receive specifically programmed FedCoin based on your own individualized monetary policy.
For example, lets say the Fed allocates a specific amount of Fedcoin/bank reserves to green energy, shale oil production, or politically correct mortgages.
So any primary dealer or bank under the Feds umbrella would have additional reserves that they could lend against those reserves.
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Fedcoin Could Make Political Corruption Worse
George thinks politicians and bankers will take this newly forged power and reward people who are politically connected.
Think about all the special interest groups, big corporations, big banks, and whoever else is rubbing elbows with powerful politicians.
So it would get more corrupt than it is now.
It will be easier to get Fedcoins into the digital wallets of those who have political connections first.
And once those entities spend the coins, then it trickles down into the real economy to all of us peasants.
Then How Does The Accounting Work
If cryptocurrencies and federal digital dollars are simply unbacked digital currency, how are they accounted for? This depends on whether they are held by a decentralized network or a centralized authority.
In the case of cryptocurrencies like Bitcoin, they are constructed from a technology called Blockchain. This is a record-keeping technology that serves as excellent accounting for digital transactions.
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Cryptocurrency Is Horribly Insecure
The crypto folks love the fact that everyone imagines that crypto means cant be cracked. So they avoid the subject. The fact is, crypto banks are robbed and every Bitcoin stolen all too often. Nearly a million bitcoins have been lost in this way, a loss at todays prices of roughly $10 billion!! Even the core defense of Bitcoin has now been cracked.
Fedcoin: The Us Will Issue E
The U.S. Federal Reserve will not only issue its own cryptocurrency but will also make sure Americans use it. Thats the prediction of currency guru Doug Casey who has an uncanny record of being correct about economic and political trends. His latest book, Surviving Fedcoin: How to Protect Yourself from Americas Coming Currency Change,is a public bet that the U.S. government will issue its own bitcoin which Casey views as the last arrow in its money quiver.
How will the dynamic play out? He speculates,
To start with, I suspect its going to be a parallel currency. Perhaps usable just within the U.S. which, in effect, would be a form of foreign exchange controls even more effective than the inability of Americans to open up foreign bank and brokerage accounts today I think its a near certainty that theyre going to do something like this and soon.
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What Does The Report Mean For Crypto Investors
While there probably arent any immediate changes crypto investors should make based on the Fed report released this week, its a good reminder that policy makers are paying attention to how perceptions of crypto are taking shape.
The Fed move means that people who were thinking of crypto as actual currency are going to get their bubble popped, says Chen. Many Bitcoin types were thinking that it is a currency and that it would replace traditional currencies. Well, not if the Fed, the European Central Bank, and other central banks have anything to say about it.
The fundamentals of cryptocurrency investing remain the same. Experts say you should stick to the big two cryptocurrencies, Bitcoin and Ethereum, and only invest what youre OK with losing or no more than 5% of your total portfolio. Always prioritize important aspects of your finances, such as saving for emergencies, paying off high-interest debt, and saving for retirement, ahead of cryptocurrency investments. As for where you buy and trade crypto, stick with a mainstream, high-volume cryptocurrency exchange, like Coinbase or Gemini, that proactively complies with evolving federal and state regulators.
The Fedcoin: What Bitcoin Doesnt Want You To Know
In December 2020, I wrote about a popular Bitcoin pricing model that was getting a lot of traction, the S2FX model.At the time, Bitcoin was on a tear and the sky was the limit for price expectations.And this popular model which promised investors the moon and more for Bitcoin prices caught the attention of crypto HODLers everywhere.Ive never seen a math model garner so much enthusiasm.
Naturally, at the time, I got a lot of hate for breaking down the math and exposing the fundamental mathematical flaws with the model the way I did.No good deed goes unpunished.
I stand by my original conclusion, which was an asset pricing model based solely on supply, without consideration for demand, is fundamentally flawed.
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Fedcoin Digital Currency Fiat Dollars And More
When you consider the rapid transition to digital currency, you might find yourself asking, Is money even real anymore? The answer to that is more complicated than most think.
View cryptocurrencies and digital dollars in the light of what they actually could be: fiat dollars. When a government creates an unbacked currency, it is a fiat dollar. If the Fed decides to make its own Fedcoin or digital dollars, this will simply be another example of fiat dollars.
Why We Shouldn’t Fear A Fedcoin
Joel CommGetty
Cryptocurrency enthusiasts have a secret fear. Its not that people wont use digital coins, causing values to collapse and wiping out their investments crypto fans believe that there will always be a demand for a digital currency that can be transferred immediately around the world and for negligible cost.
Their worry is that everyone will use just one digital coin, causing values to collapse and wiping out investments in all their other coins.
The concern is that the U.S. government, through the Federal Reserve, will release its own FedCoin and make it the only currency allowed for digital U.S. trade. That would be bad enough, but if the government pre-mined all those coins, it would also have the same control over the currency and its value that Federal Reserve can now exert over the dollar. It could peg its FedCoin to fiat, and with sole control of the blockchain, it might even be able to retroactively change entries in the blockchain, wiping out transactions and seizing assets.
The dream of a decentralized global currency free of regulation and government interference, and powered only by its users, would have been crushed by the government juggernaut.
As central banks, such as the Bank of England, have explored the possible role of the blockchain in the banking system, experts have looked at the issue of a government-issued FedCoin with varying degrees of curiosity, enthusiasm and fear.
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Federal Reserve Considers Pros And Cons Of Digital Currency
As you can tell by the amount of time weve devoted to him on the program today, Federal Reserve Chair Jay Powell has a lot going on right now. Tapering. Interest rate hikes. Probably impressing the other Fed governors with his Wordle scores.
Another issue rising to the top of the chairmans to-do list? Whether the Fed should create its own digital currency, a so-called digital dollar. The Fed released a long-awaited report last week weighing the pros and cons of creating digital cash, and it took pains not to take a side one way or the other.
But how might a digital dollar actually work?
Lets say hypothetically you need a Mountain Dew and a Slim Jim from the corner store to power you through the afternoon. If youre low on cash, youd probably use a debit or credit card.
If that bodegas lucky, hell actually see the money in a few weeks time, but not immediately, said Chris Giancarlo, who heads the Digital Dollar Project, a nonprofit advocacy group.
He said that in the future, with a digital dollar app on your phone, you go into your shop, buy your Slim Jim and your Mountain Dew, and you put your mobile device into the stores reader, and money actually moves.
Instantly, just like cash. The bodega owner doesnt have to wait for Visa, Bank of America or Apple Pay to do anything and doesnt have to pay them fees, either.
But theres plenty of skepticism about whether Americans themselves would embrace this.
Fedcoin Wont Mean A Gold Or Silver Ban
Regular readers will have heard about it by now
The government is planning to replace the cash in your wallet with a new, digital-only dollar.
Legacy Research cofounder Doug Casey calls this digital currency FedCoin. Thats because the government will issue it, but it will be loosely based on cryptocurrencies such as bitcoin.
Youll spend it from a wallet app on your smartphone. This is also where youll receive and store your FedCoins.
But dont be fooled by the hype.
As weve been showing you in these pages, the Fed will still centrally control FedCoin. That means unlike bitcoin, which is decentralized and scarce the government can still issue money at will.
Also, each FedCoin transaction will leave a permanent digital record in a government database somewhere. The feds will collect, store, and parse the details of every transaction you make.
And as Doug and his chief analyst, Nick Giambruno, have been warning, its going to be a dual disaster for your privacy and your wealth.
Youll hear more from Nick about the feds War on Cash below.
Youll also hear from Legacys globetrotting geologist and commodities investing expert, Dave Forest, about a precious metal he expects will join the gold and silver rally soon.
But first, lets kick off with a question about FedCoin
We reached out to our go-to tech expert, Jeff Brown, for his insight.
Hes also traveled to Israel on a U.S. Certified Trade Mission on blockchain and digital payments.
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What Is Id Coin Technology
The ID Coin is a presentation by John Engel where he says that we could see the introduction of a new identification system that is built on the blockchain.
In the long term, the new system will be used as the base form of identification replacing social security. It will be safer than Social Security because it will do a better job protecting peoples personal information from hackers. Retrieving useful information will also be easier.
The ID Coin system is not particularly novel as it has already been implemented by countries like India and Estonia. Both countries streamlined their identification systems and made them safer and more efficient.
Microsoft and Accenture have been collaborating on a project to build a blockchain-based network as part of a project to issue legal identification to those who currently dont have identification documents.
This is relevant to investors because John believes that it opens up an investment opportunity. One that they have to take before the system goes mainstream .
He says that the new crypto-based system will be bigger than Bitcoin, Ethereum, and Ripple combined. He expects that by the time it reaches mass adoption, it will have grown by up to 80,782%.
He has uncovered a way in which you can acquire a stake in the system without owning a digital wallet like youd need to trade cryptos in an exchange.
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Is Id Coin Legit
The ID Coin is legit. Blockchain is one of the technologies that will soon be ubiquitous in our lives. So far, it is best known as the base technology for cryptocurrencies. However, its applications are expanding due to its versatility and utility.
For example, companies and governments have already begun using it to create automatic ledger systems to file title deeds and other sensitive public documents. When stored using a blockchain-based system, such documents can easily be traced, which helps prevent fraud.
Therefore, it doesnt sound unrealistic that it can be used to create a personal identity system.
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How To Buy Fedoracoin
There is no real easy way to convert your cash into FedoraCoin directly, regardless if you are using USD, Euros, GBP, Canadian Dollars, Paypal, Credit Card, etc.. the list goes on.
In order to buy FedoraCoin or TIPS you first need to convert your currency of choice into one of the main crypto currencies like Bitcoin, Ethereum, or Litecoin, and send it to an exchange where you can easily trade your BTC, ETH, or LTC for TIPS.
For this beginners guide we will show you one of longest standing exchanges and still today one of the fastest and easiest ways of getting started trading and investing in crypto: CoinBase.
Note:
Fedcoin: Federal Reserve Studying Digital Currency
Posted by Ryan James | Nov 22, 2021 | Money Moves
2 minute, 9 second read
The future of currency could become completely digitaland not just decentralized currency like crypto, either. The Federal Reserve is studying whether they want to get into the digital currency game, and it has current crypto-holders concerned.
The Fed is considering issuing their own digital currency called Fedcoin.
Fedcoin would be based on blockchain technology.
If you dont know what blockchainis, here is a brief explanation courtesy of Motley Fool:
The digital and decentralized ledger that records all transactions. Every time someone buys digital coins on a decentralized exchange, sells coins, transfers coins, or buys a good or service with virtual coins, a ledger records that transaction, often in an encrypted fashion, to protect it from cybercriminals. These transactions are also recorded and processed without a third-party provider, which is usually a bank.
According to Investopedia, Digital currency relies on a secure and immutable ledger to track transactions. This also makes it possible for seamless and direct transfers, without intermediaries and between recipients which simplifies the implementation of monetary policy in an economy.
The Fedcoin would be a central bank digital currency, which is referred to as CDBC.
So far, there are 83 countries studying the viability of CBDCs, including China, considered to be the farthest along in the process.
But it appears that day is coming.
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How Crypto Could Bring One Of The Most Important Concentrations Of Power The World Has Ever Seen
The more I think about crypto, the more I get scared about our future.
On the one hand, cryptocurrency seems like a libertarian dream. The technology allows transacting moneyor anything of valueover the Internet without any third parties involved. Crypto is all about empowering individuals. Projects like Bitcoin are open source, permissionless, borderless, censorship-resistant and beyond the control of anyone. They put the existence of banks into question and hint at a world of radical self-governance.
On the other hand, cryptocurrencies could also be used by governments to gain terrifying power over the population. More than they ever had in history.
How is that possible? Consider FedCoin: the idea of a centralized cryptocurrency built by a government and meant to replace its currency.
The Why Of It According To Casey
Doug Casey addresses Americas central banking system but the circumstances favoring a U.S. Fedcoin are mirrored throughout the Western world.
He doesnt buy the stability theory. The U.S. government is bankrupt with liabilities far exceeding assets. Casey explains,
Social Security is bankrupt Forty-seven percent of the people in this country are net recipients of money from the government Officially, one-third of all the US governments assets are student loans little-known fact. About $1 trillion worth of them.
The greenback is semi-stabilized by being the worlds money but its privileged status is being shaken by nations such as China and Russia who aggressively seek alternative mediums for global commerce. Casey believes that yesterdays monetary controls quantitative easing and interest rates at near zero or below cannot sustain a bankrupt dollar with waning global relevance. Yesterdays methods are going to come to an end.What can they do?
What the feds can do is cryptocurrency Fedcoin is whats coming to a start. And, according to Casey, the primary benefit to government would be a centralization of supply and a transparency of demand , which could centralize control of the economy to an unprecedented extent.
Casey observes that the feds,
Fedcoin would give the government God-like ability to track wealth. The justification will be to prevent criminal activities such as drug dealing and money laundering.
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