CBDC – 3 reasons to just say no

Central Bank Digital Currencies (CBDC) are an even worse idea than Trickle Down Economics and land wars in Asia. I initially wrote a long intro about how policy makers were being stupid even engaging in the conversation about CBDCs but instead deleted it all for the following simple truth:

Follow the money. Smart money is going into cash.

On that note here are a few built points for you to consider before you get duped into this freedom snatching, value corroding conversation about Central Bank Digital Currencies:

96% of current currency is already digital. Your paycheque isn’t a check, it’s a direct deposit. And your credit cards and debit cards have been digital for as long as you’ve been trying to figure out how to make / earn even more (digital) money to have in your (virtual) bank account. See where we’re going with this? Commercial paper isn’t actually paper either but I think you get the point. You and I already exist in a global digital payments, processing and value ecosystem….created by private banking institutions. So, what really is the point of CBDCs?

Digital Currencies, as conceptualised under CBDC would be programmable. No one really knows what that means but there is a reason China is at the forefront of creating CBDCs. For instance, wouldn’t it be great if you could program money so that it could only be spent on things that the Banks or the Government approves of? What could possibly go wrong? The point of CBDCs is control. Because when you can program money Banks / Government can program it to leave your wallet, just because the Government feels that they know best what to do with your money than you. See how well Uncle Sam invests your hard earned tax dollars? Programmable money, aka CBDCs, gives the Government the ability to determine what, how, where and when you can use “your” money.

“Programmable” money is the Death of Democracy. Really CBDCs are the end of your personal freedom and the institutionalising of BIG Brother and Gargantuan Government. Too, with programmable Central Bank Digital Currencies there is no difference between Big Brother, the Eye of Sauron, the IRS, Eminent Domain and the Government. Ok, I kid about eminent domain, that is hyperbole. However, the financial version of eminent domain, aka Civil Forfeiture will become a real problem that every American should be concerned about when discussing CBDCs.

What is Civil Forfeiture? I didn’t plan on writing about this but because it gives the Police the ability to seize your programmable money (CBDC) with a stroke of keyboard and no warrant, you should probably be aware of what rights you’re giving up with CBDCs. So, the definition of Civil Forfeiture, courtesy of Wikipedia:

“Civil forfeiture in the United States, also called civil asset forfeiture or civil judicial forfeiture, is a process in which law enforcement officers take assets from persons suspected of involvement with crime or illegal activity without necessarily charging the owners with wrongdoing. While civil procedure, as opposed to criminal procedure, generally involves a dispute between two private citizens, civil forfeiture involves a dispute between law enforcement and property such as a pile of cash or a house or a boat, such that the thing is suspected of being involved in a crime. To get back the seized property, owners must prove it was not involved in criminal activity. Sometimes it can mean a threat to seize property as well as the act of seizure itself.”

Conclusion – Cash is King!

By the way, the Police seize billions of dollars using Civil Forfeiture each year in the USA. Since 2000 over $68.8B has been seized in the USA by Police using Civil Forfeiture. My home State of Florida is leading Civil Forfeiture with over $266M seized in 2018 alone.

Keep in mind that these numbers are grossly underreported by the Police and often take years to be reported because the Police get to keep the cash. Oh, in the majority of Civil Forfeitures no one is charged with a crime. I know this sounds crazy. How do police seize “bad guys” money when there is no judge, jury or process to determine that these are infact “bad guys”? Welcome to America! We really do have a criminal Justice System. Read more on Civil Forfeitures in Florida here

Why I bring up Civil Forfeiture is because if CBDCs are adopted, programmable money lowers the already subterranean bar that the police must jump in order to seize your hard earned money. I know. I know. If you’re not doing anything bad or illegal, you should have nothing to hide. Hence why I encourage you to research Civil Forfeiture. As in those instances, it is up to you to prove why you have your money, not the Police as to why they’re seizing it. For instance, I can see a future where any transactions over $10K aren’t just flagged but seized until that person can explain how that money is in fact theirs.

Again, no one knows how programmable money will really work, but I’d simply program it to self-report any activity over $10k and see what happens. What could go wrong?

Finally, CBDCs don’t solve or even pretend to address unemployment, under-employment, pay equity, inflation, poverty, social justice or financial inclusion.

What they do lay the framework for is Universal Basic Income (come on now, you knew this was coming) and Big Brother and Gargantuan Government as the cornerstone of America. Should America adopt CBDCs it would not move us any further along to achieving economic inclusion, parity or equity. Rather, paint historical barriers of fiscal injustices with a fresh coat of CBDC coloured paint. Which for the record is blood red, as that is what you’ll be seeing if they’re adopted.

Oh, and Cash will remain King. Because you can’t have real freedom without the ability to spend your money, anonymously, on whatever good, product or service you want (sex, drugs, porn, gas cars, gene therapy, end of life care/decisions, guns, non GMO foods, etc..). And don’t even get me started on CBDCs and political campaign donations. I’ll save the chat about dark political money for later. Until then, don’t drink the CBDC kool aid. It is laced with surveillance capitalism.

About The Author

Samson Williams is a serial entrepreneur and accidental investor. When not starting business with his enemies (“Entrepreneurship is hard. I only recommend it to my enemies.”), Samson is an Adjunct Professor at Columbia University in NYC and University of New Hampshire School of Law where he teaches on blockchain, cryptocurrencies and the Space Economy.

Samson is also President of the Crowdfunding Professional Association and investor into two investment crowdfunding platforms Brite.us – CrowdInvesting Done Brite and GoingPublic.com. Lastly, Samson is Senior Economist at Milky Way Economy, where he explores the policy and practical implications of The Space Economy and all forms of cryptocurrency / digital currencies. For more information on Samson visit www.SamsonWilliams.com and follow him on social @HustleFundBaby.