The Federal Reserve announced that it is beginning steps toward a government-issued digital currency on Thursday. The Fed is opening a public forum for discussion about the possibility of creating a “Central Bank Digital Currency” (CBDC). The Fed says that it is interested in studying the strengths and weaknesses of a digital currency that might improve the country’s domestic payment system.
Fed Chairman Jerome Powell said that the central bank looks forward to discussions with a “broad range of stakeholders” about a US digital currency. His statement observed that a CBDC would act as a central bank liability in digital transactions, just as current digital transactions are liabilities carried by private banks.
The Fed cautions that if the US falls behind other nations using their central banks to launch digital currencies, the country could see global use of US dollars as the world’s reserve currency decreases.
Privacy advocates have expressed concern about implementing a CBDC because federal, state, and local governments could use the digital currency to collect taxes and distribute payments directly to citizens and other recipients. The concern is that governments would then easily have complete access to private financial accounts and information without meaningful restrictions.
Jeremy Warner of the UK’s Daily Telegraph wrote that if a central bank maintains a “single ledger” of all transactions in a digital format, it will be able to observe every financial transaction in its nation. He also cautioned that a CBDC could cause extension of credit decisions to become concentrated in the control of the state.
The movement toward CBDCs has been one of the significant features of the globalist World Economic Forum’s “Great Reset.” Its leader, Klaus Schwab, has said that a new reserve currency for global use will be necessary to replace the US dollar.
The International Monetary Fund said in an article published last year that CBDC use would help governments to use internet history to create a “social credit” system in style used by the Chinese government to facilitate “financial services provision.”