Eswar Prasad, a Cornell University professor, has warned that central bank digital currencies (CBDCs) – with their expiry dates and restrictions on “less desirable” purchases – could lead economies to a much dark path. Prasad issued the warning during the 14th Annual Meeting of the New Champions hosted by the World Economic Forum (WEF).
During one of the 30-minute panel discussions at the WEF event, also known as Summer Davos, Prasad said programmable CBDCs and other new forms of money could take the international economic landscape toward financial collapse.
He noted that one of the “huge potential gains” for digitizing money is the programmability of CBDC units.
“You could have a potentially better – or some people might say a darker world – where the government decides that units of central bank money can be used to purchase some things, but not other things that it deems less desirable like ammunition, or drugs, or pornography or something of the sort,” Prasad explained. “And that is very powerful in terms of the use of a CBDC, and I think also extremely dangerous to central banks.”
A digital currency has unique characteristics that can serve as the conduit for economic policies in a very targeted way, or more broadly for social policies that could affect the integrity of central bank money and the integrity and independence of central banks. “So, there are wonderful notions of things that can be done with digital money, but again I fear the technology also has the potential to take us to a pretty dark place,” he said.
Meanwhile, the Epoch Times reported that putting expiry dates on CBDCs is currently being discussed across the globe, with the Bank of Canada (BoC) doing a piece on its pros and cons. The institution insisted that an expiry date would “automate personal loss recovery.”
“With this feature enabled, digital cash could not be spent after its expiry date. Consumers whose digital cash expired would automatically receive the funds back into their online account without having to file a claim,” BoC wrote. “We show that offering the option of personal loss recovery could substantially increase consumer demand for digital cash. However, the length of time to expiry plays a key role. An expiry date that is too soon is inconvenient, but a date too far in the future slows down the reimbursement of lost digital cash.”
China has also considered integrating the best-before dates on the digital yuan, creating a policy that would invalidate the money after the specified timeframe.
“Expiring money would increase both the velocity of money and overall economic activity, similar to applying a negative rate to digital cash,” the World Bank wrote. “In practice, a carrying fee on money would encourage people to spend it and thus prevent it from being hoarded.”
Survey: Only 16% of Americans open to using CBDCs
What experts are worried about echo in the nation’s pulse. The Cato Institute’s 2023 CBDC National Survey finds that only 16 percent of Americans support the CBDC adoption despite their regular use of digital dollars via credit cards, debit cards and other digital platforms. (Related: Only 16% of Americans would support adoption of CBDC, survey finds.)
According to the study, 34 percent of Americans oppose the Federal Reserve offering a central bank digital currency and only 16 percent favor it. Nevertheless, the plurality of Americans (49 percent) has not formed an opinion, allegedly because of the fact that only 28 percent of Americans are familiar with CBDCs and 72 percent are clueless. Based on political affiliations, only 11 percent of Republicans favor using digital money, exactly half of the 22 percent of Democrats who support it.
Although CBDCs are advertised as enhancing financial inclusion in the economy, lower-income groups do not support a CBDC more than higher-income groups. Among those earning less than $20,000 a year, 19 percent support it; among those earning more than $100,000 a year, 21 percent support one form of digital currency.
The survey also found that 68 percent of Americans would oppose it if the government could monitor their purchases. While both Democrats (71 percent) and Republicans (82 percent) would oppose a CBDC if the government could control what people spend their money on and when. Also, 76 percent of people are more concerned about CBDCs’ potential risks than their promised benefits.
Visit CurrencyCrash.news for more news related to the phasing out of physical money amid the proliferation of digital currencies. Watch this video that talks about the Bank for International Settlements releasing the new plan for a global CBDC.
This video is from the Pool Pharmacy channel on Brighteon.com.
More related stories:
IMF workingking crisis to usher in central bank digital currency, experts warn.
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Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
