Government Cryptocurrencies Aren’t Good for Everyone
If you have a lot of money in the bank, a government crypto should terrify you. It is a very quick and convenient way for you to receive payments from the government. That’s good news, right? It is also a quicker and more convenient way for the government to completely control you and steal your money. I don’t know if that is what big brother actually has planned, maybe I just have a suspicious mind. Governments never abuse their power, right?
What if I don’t have any savings?
You may not have given this much thought but here are a few things that could happen. First if you don’t have much and are going to be on the government dole (UBI) or a government pension and you have no savings then this is super swell for you. The government loves it when you spend all your money. This makes the economy look great and all the people receiving the free money will be happy and keep voting for that group of overlords. Yahoo!
What if I have a lot of money in liquid assets?
Things aren’t so peachy for you. The sneaky government wants to shrink its own debt and tax you more so it could introduce negative interest rates meaning it will take money from your savings instead of paying you interest and eliminate the cost of its own debt. Your government also has a trap. If the they “phase in” a cryptocurrency it will also “phase out” paper money and by extension there will no longer be any need for your local bank and nobody will want to accept your cash. So forget about getting a lumpy mattress. I suspect the banksters will put up quite a fuss over this but I imagine they will get their finger in the pie somehow.
What should I do with my cash?
Firstly I really don’t know and truthfully neither does anybody else. People are buying stocks at prices that suggest the dollars they are buying them with are worthless, like a hot potato. I can find completely opposite opinions from “experts” telling people what to do. Buy gold, silver, bitcoin, realestate, collectables, art, basically anything that has a limited supply so as to retain some kind of value against a falling or soon to be cancelled currency. There is a lot of conversation about this on financial sites because there is a lot of concern as to what the big plan is. There are lots of opinions but no answers. To be clear, there are a lot of opinions but nothing I could say was a definite course of action that there seems to be a consensus on.
Some people are buying other currencies. I really don’t think this will make much difference as a government crypto seems to be an idea that is being embraced by all governments worldwide. You may not realize it but we are getting conditioned to this cashless society. Young people especially have been super happy to use the convenient method of spending and receiving money. During the pandemic we were told money was dirty and would easily transmit disease and many stores refused to accept it. You probably get your pension automatically deposited in your bank account. You buy your coffee with just a tap. You buy everything online from amazon with your credit or debit card. It’s great and convenient, right?
What could possibly go wrong?
It all seems very convenient and benign other than the negative interest rates which would only be fractionally negative. Let’s reflect on the power that we would be giving our government who we know only have our best interests at heart. First there would be no more anonymous transactions. Did you have a garage sale? No problem, we will just deduct the tax we think you owe for that income directly from your account. You would like to order a pizza? Nice try, we see from your medical records that you have high cholesterol so your government crypto card won’t work unless you are buying a salad. Hmmmmm, how many more decisions could our benevolent overlords make for our protection? What if you donate some crypto to a religious or political organization that the current ruling party does not approve of? How about any news services that you subscribe to? Is it possible that your spending account could be suspended until you change your attitude? I am not saying any of this is going to happen but is possible.
How likely is a government crypto?
It seems there are a lot of people that feel this is a possibility as it might explain the sudden influx in interest in bitcoin including by banks. If there is another medium of exchange that is outside government control and is anonymous then it would be a safe haven from government control or would it? I bought some bitcoin. In order to buy it I had to go to an exchange which required all my tax information including government tax ID so they could report my purchases to the authorities. Although transactions made with bitcoin are anonymous, the government knows you own bitcoin sooooo not such a big secret. One of my favorite Youtubers, George Gammon does an excellent job of explaining the pros and cons of bitcoin, if you really want to get a handle on it then watch this video.
The movie “Demolition Man” seems to have been quite prophetic about what kind of society this would produce. It is worth watching keeping in mind the societal changes that it portrays.