A NEW SYSTEM

Why Bitcoin Could be Banned or Criminalized in the Coming Years

Monetary system changes could become a big problem for Crypto fans

Photo by Kev Seto on Unsplash

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Out of Tools

It is important to understand that the Fed is out of traditional tools (interest rates, bank reserve requirements), and that QE (Quantitative Easing) was already an experimental method of trying to stimulate the economy.

CBDC Coming

On the horizon, we have CBDC — Central Bank Digital Currency, which will very much be a promising new tool for the Fed to tinker with the economy.

Economic Growth

When we talk about the GDP growing or shrinking, we are talking about a primary measure of US economic growth. As to our part, the citizen-consumer, what you need to understand is what contributes to growth, and what does not.

More Control

CBDC will be a “closed-loop” system, just as some other forms of fully-digital money and equivalents are today. You likely get a discount on gas, for example, by paying with a certain company’s fuel card; you’ve likely received credit card “points” that could only be spent on specific items, or airline miles with blackout dates and other restrictions. There’s a vast amount of control in such closed-loop systems of money.

  • Caps on “undesirably high” savings;
  • Expiration dates on CBDC funds;
  • Restrictions on what CBDC can be spent on;
  • Negative interest rates.

Alternate Means

So what? I just won’t use CBDC, I’ll use good ol’ US dollars instead. That will work fine — until you can’t. The primary hindrance preventing effective negative rates is the existence of physical cash.

Enter Crypto

Now we can begin to see and appreciate both the beauty, and the threat of cryptocurrency in light of longer-term global economic aspirations. 80% of the world’s central banks are working on their own CBDC.

Bitcoin, Gold, and escape

It will not be about the problem of anonymity. The regulations being placed on crypto today will ensure that exchanges, at the very least, know who you are and what you’re doing.

We’re all in this together, like it or not

In the future, when you get your stimulus, UBI, or other monthly stipend, they’ll want you to spend it. The one thing they cannot allow to happen is for you to simply be able to purchase some bitcoin or other cryptocurrency and get away from all of their onerous rules. This is by and large why I personally believe they will attempt to ban cryptocurrency, or at least place rules in the CBDC that prevent the purchasing, exchanging, or selling of crypto assets. They’ll want to prevent you from using an untouchable, alternative store of value — even temporarily.

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