{"id":1998490,"date":"2023-08-12T00:35:54","date_gmt":"2023-08-12T04:35:54","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/in-depth-federal-reserve-considering-central-bank-digital-currency-but-few-understand-its-dangers\/"},"modified":"2023-08-12T00:39:01","modified_gmt":"2023-08-12T04:39:01","slug":"in-depth-federal-reserve-considering-central-bank-digital-currency-but-few-understand-its-dangers","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/in-depth-federal-reserve-considering-central-bank-digital-currency-but-few-understand-its-dangers\/","title":{"rendered":"Federal Reserve mulls digital currency, risks misunderstood."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fin-depth-federal-reserve-considering-central-bank-digital-currency-but-few-understand-its-dangers%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1998490&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Understanding Central \u2064Bank Digital Currency (CBDC)<\/h2>\n<p>Most Americans haven&#8217;t\u200b heard of a central\u200c bank digital currency, and those who have don&#8217;t really understand what it is.<\/p>\n<p>While the Federal Reserve considers implementing such a \u2062program in the United States, some are trying to warn Americans about its potentially\u200c devastating consequences.<\/p>\n<p>According to the Federal Reserve, a\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-fed-chair-says-his-mind-is-open-on-a-digital-dollar\/\" title=\"WATCH: Fed Chair Says His \u2018Mind Is Open\u2019 On A \u2018Digital Dollar\u2019\">central bank digital currency<\/a> (CBDC) &#8220;is\u200c generally defined \u2064as a digital liability of a central bank that is\u200c widely available to the general public.&#8221;<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li>\n      <a href=\"http:\/\/www.theepochtimes.com\/us\/republican-bill-seeks-to-ban-central-bank-digital-currency-in-us-over-privacy-concerns-5141222\">Republican Bill Seeks to \u200dBan Central Bank Digital\u2063 Currency in US Over Privacy Concerns<\/a><br \/>\n      <br \/>\n      <span>3\/22\/2023<\/span>\n    <\/li>\n<li>\n      <a href=\"http:\/\/www.theepochtimes.com\/world\/analysis-slippery-slope-experts-warn-about-pitfalls-of-central-bank-digital-currencies-5278196\">ANALYSIS: \u2064\u2018Slippery Slope\u2019: Experts Warn About Pitfalls of Central\u2063 Bank Digital Currencies<\/a><br \/>\n      <br \/>\n      <span>5\/22\/2023<\/span>\n    <\/li>\n<\/ul>\n<\/blockquote>\n<p>&#8220;Like\u2064 existing forms of \u200cmoney, a CBDC would\u2062 enable the general public to make \u2062digital payments,&#8221; the Fed explains. &#8220;As a liability \u200dof the Federal \u200bReserve, however, a CBDC would be the safest digital \u200casset available to the\u2063 general public,\u200d with no associated credit or liquidity risk.&#8221;<\/p>\n<p>Currently, the \u2063Federal Reserve says it &#8220;has made no\u200d decisions on whether to pursue \u200cor implement&#8221; a CBDC. But \u200bthe Board of Governors &#8220;have been exploring the potential benefits and risks of CBDCs from a variety of angles.&#8221;<\/p>\n<p>On May 1, Kristalina Georgieva, managing director of the International \u2062Monetary \u2064Fund (IMF), proposed that \u200cit\u2019s only \u200da matter\u2064 of time before <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-inches-closer-to-developing-central-bank-digital-currency\/\" title=\"Fed Inches Closer to Developing Central Bank Digital Currency\">central bank digital currencies<\/a> (CBDCs) become \u200bstandard around the world, even in \u200bthe United States.<\/p>\n<p>\u201cThe future has arrived,\u201d she \u200dsaid at the Milken Institute&#8217;s <a href=\"https:\/\/milkeninstitute.org\/panel\/14584\/part-1-conversation-imf-managing-director-kristalina-georgieva\" target=\"_blank\" rel=\"noopener\">2023 Global Conference<\/a> \u2063in\u2062 May. \u200d\u201cEven in the U.S. where [CBDC] was for quite\u200c some time a topic of\u2063 not great interest, now there is an engagement.\u201d<\/p>\n<p>IMF Deputy \u200dManaging \u2064Director Bo \u2062Li said in October 2022 that \u200cCBDCs can allow government \u200bagencies and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/central-bank-digital-currencies-would-let-governments-control-what-people-spend-money-on-imf-official\/\" title=\"Central Bank Digital Currencies Would Let Governments Control What People Spend Money On: IMF Official\">private sector players<\/a> to program the currency to\u2063 allow targeted policy functions. He said\u2064 money \u2064can be precisely targeted for what people can own and what they \u200bcan use\u200b the money to buy,\u2064 such \u200cas \u2063food.<\/p>\n<h2>The Risks<\/h2>\n<p>A significant \u2062danger posed\u200d by CBDCs is\u200c the loss\u2063 of \u200dprivacy, a violation \u2062of every American&#8217;s constitutional rights.<\/p>\n<p>The \u200cFourth Amendment states that \u200b&#8221;the right of the\u200b people to be secure in their persons, houses, papers, and effects, against unreasonable\u2063 searches and \u2064seizures, shall\u200b not be violated, and \u200bno\u2062 Warrants shall issue, but\u200c upon probable cause, supported \u2063by \u200bOath or affirmation, and particularly describing \u2063the place to be searched, and \u200cthe persons or things to be seized.&#8221;<\/p>\n<p>Idaho Republican state \u200bRep. \u2062Ted Hill predicts that CBDCs &#8220;would be \u2063the back door\u2062 to violating the Second Amendment.&#8221;<\/p>\n<p>&#8220;They&#8217;ll know\u2064 just how many rounds of\u2062 ammunition \u200byou purchased.\u2063 They will track\u200b everything you do,&#8221; Mr. Hill\u200b told \u2063The\u2063 Epoch Times. &#8220;It&#8217;s\u2063 absolutely the best tool for a\u200b surveillance state\u2062 you can \u200dbuy.&#8221;<\/p>\n<p>&#8220;We&#8217;re\u2063 trying\u200d to push back \u2064on this for the same reason\u200d we\u2062 <a href=\"https:\/\/www.theepochtimes.com\/us\/in-depth-states-stop-credit-card-companies-from-tracking-gun-purchases-it-may-not-last-5433928\" target=\"_blank\" rel=\"noopener\">pushed back on the merchant \u2062codes<\/a>,&#8221; he said, referring to the practice of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/in-depth-federal-reserve-considering-central-bank-digital-currency-but-few-understand-its-dangers\/\" title=\"Federal Reserve mulls digital currency, risks misunderstood.\">credit card companies \u200ctracking firearm<\/a> and ammunition purchases.<\/p>\n<p>He called CBDCs &#8220;the epitome of a\u2063 surveilled society,&#8221; adding that &#8220;it&#8217;s \u2064terrifying.&#8221;<\/p>\n<p>A CBDC\u200d would also give \u2064the government unprecedented access to consumer financial data.<\/p>\n<h2>Frozen Assets<\/h2>\n<p>While freezing or confiscating someone&#8217;s cash assets ordinarily requires\u2062 a court\u2064 order, a CBDC would make it easier for the government to freeze or\u200d seize assets.<\/p>\n<p>This threat is valid.<\/p>\n<p>Federal Reserve Governor\u2063 Michelle Bowman warned in April\u2062 that &#8220;this type of control not only has\u2063 the \u200dpotential to\u2063 allow the \u2062government to limit \u2064certain types of private spending or limit access \u200dto banking accounts, it could also threaten the Federal Reserve\u2019s independence.\u201d<\/p>\n<p>Rep. Tom Emmer (R-Minn.) agreed, saying at a <a href=\"https:\/\/www.youtube.com\/watch?v=fpMuriR458M\" target=\"_blank\" rel=\"noopener\">Cato Institute<\/a> \u200b panel discussion in March that\u200c a CBDC is the equivalent of\u2062 \u201cgovernment-controlled, programmable money\u2063 that can\u2062 easily be weaponized \u2062into a surveillance tool.\u201d<\/p>\n<p>Masato Kanda,\u2064 Japan\u2019s\u200b vice minister of finance for international affairs, said in \u200cApril that he believes the digital nature \u200bof \u2064a CBDC also makes it vulnerable to cyberattacks. Hackers\u2014private or governmental,\u2064 foreign \u2062or domestic\u2014could target the central bank or individual accounts, and with the stroke\u200c of a few keys they would even have the power to\u2062 cause \u2062widespread disruption to the global\u2062 financial system.<\/p>\n<p>On March\u2063 9, 2022, President Joe \u200bBiden signed executive order 14067, outlining six \u200bpriorities \u2062for establishing a national policy \u2064for digital assets and \u200cdirecting the secretary of the Treasury to\u200c &#8220;produce a report on the future of money and payment systems, to include implications for economic growth, financial growth and inclusion, national security, and \u2064the extent to which technological innovation may\u2063 influence \u200dthat \u2064future.&#8221;<\/p>\n<p>In September 2022, the\u2062 Department of \u200dthe \u2062Treasury announced the release of that report (<a href=\"https:\/\/home.treasury.gov\/system\/files\/136\/Future-of-Money-and-Payments.pdf\" target=\"_blank\" rel=\"noopener\">pdf<\/a>), saying &#8220;there are substantial opportunities\u2062 to promote faster, cheaper,\u200d and more inclusive payments, but the Treasury \u2064Department later admitted\u2064 there is &#8220;a need for further research and development on the technology to support a U.S.\u2062 CBDC, which could take years.&#8221;<\/p>\n<h2>&#8216;Tax Evasion and Terrorism&#8217;<\/h2>\n<p>Peter St.\u200b Onge is a research fellow in\u200d the Thomas A. Roe Institute for Economic Policy\u200c Studies and the Mark A. Kolokotrones Fellow in Economic Freedom at\u2064 The Heritage Foundation<\/p>\n<p>St.\u200c Onge\u200d is not a fan of CBDCs.<\/p>\n<p>He said he \u200dfears that &#8220;all of America&#8217;s dollars could become this plaything where the government could just shave off money from people they don&#8217;t like and give one hunk for the\u2063 people who vote for them and another hunk for\u200b their donors.&#8221;<\/p>\n<p>He also warns that the government will give familiar reasons\u200b for claiming\u200b a CBDC is good for\u2064 the people.<\/p>\n<p>&#8220;Tax evasion and terrorism. Those are\u200c the classics,&#8221; he told The Epoch Times. &#8220;The Bank Secrecy Act was &#8216;the tax evader.&#8217; The Patriot Act \u2063was &#8216;the\u2063 terrorists.&#8217; Every time\u2062 they want control over\u200c the American people and take our \u2062freedoms away, these are always the ones they trundle out, and we&#8217;re supposed\u2062 to imagine that the\u2063 government will constrain itself when instances of financial censorship would be front and center.&#8221;<\/p>\n<p>He also cited \u2064the growing effort to pull the United States\u2062 into a global world order and do away with the\u2063 Constitution.<\/p>\n<p>&#8220;The sick irony \u200bof it\u2062 is that this global government we&#8217;re kowtowing to was\u2062 built in \u2062part by a\u200c previous generation of Americans\u2014the IMF, the World \u200cBank, and the United\u200d Nations\u2014and the goal at \u200bthe\u2062 time was that the U.S. \u200bwould control the world, \u2064and boy did that backfire,&#8221; he\u2063 said. &#8220;I would prefer \u2064we pull out of \u200cthe whole mess. To heck with it. Evict them.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>as a new form of central bank money that is different from physical cash and reserves held by commercial banks.&#8221; It would be a digital representation of a country&#8217;s currency, issued and regulated by the central bank. However, many Americans are unaware of this concept and its implications, prompting concerns about its potential negative effects.<\/p>\n","protected":false},"author":225,"featured_media":1998491,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-1998490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1998490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/225"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1998490"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1998490\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1998491"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1998490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1998490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1998490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}