Important Silver & Gold Market Updates Thousand Oaks

Biden Admin Takes Steps Toward A Digital Dollar (CBDC)

 On March 9, President Biden took a first step toward creating a U.S. CBDC, directing his administration to report to him by this fall on whether and how to implement a federal digital dollar. In February, the Boston Fed completed the first phase of Project Hamilton, a CBDC simulation it has been developing together with MIT’s Digital Currency Initiative.

Among the goals Biden cited for a U.S. CBDC were:

 

  •  faster and cheaper payments,
  •  financial stability
  •  fighting financial crime
  •  maintaining the preeminence
  •  security of America’s currency
  • “Financial inclusion and equity.”
  • Biden also ordered a report of “the potential for these technologies to impede or advance efforts to tackle climate change.”

 Nine countries have established CBDCs thus far, and 15 others, including China, Russia, and Sweden, currently have pilot programs in place.

 Altogether, 87 countries that collectively represent 90 percent of global GDP are at some stage in the development of CBDCs. Deutsche Bank predicts that central banks collectively representing one-fifth of the world’s population will issue CBDCs by 2025.

 China has taken the lead on implementation among the world’s major economies, issuing its e-CNY, or digital yuan, in 2020 and…

 By the end of 2021, the digital yuan had 261 million users, representing about one-fifth of China’s population, according to the People’s Bank of China. 

 Unlike cash, however, the Chinese government can observe and track every transaction.

 

 “The reason the U.S. economy is so resilient and able to generate the growth that we do is that we have a private financial system,” Whalen said. “People who argue for efficiency and say, ‘Let’s have one big public bank,’ they don’t understand. There’s no leverage in a system like that. Then you essentially have China… an allocation system.”

Call us now to protect your wealth with private gold and silver…before the government decides it will once again intervene.