Central Bank Digital Currencies: The Wet Dream of Aspiring Totalitarians

An exploration of what they are, how they work, and how they will become the biggest human control mechanism in history

This is how they sell CDBCs, to make them appealing. The analysis below shows how destructive CBDCs can be to humanity.

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Talk of central bank digital currencies (CBDCs) has become more mainstream over the last few years, with over 100 central banks worldwide in different stages of research and prototype development. However, before diving into CBDCs, how they will function, and their advantages and disadvantages, let’s first take a brief look at what a central bank is.

What is a central bank?

Investopedia writes, “A central bank is a financial institution given privileged control over the production and distribution of money and credit for a nation or a group of nations.” 

Every country has one, along with several smaller “member banks,” which serve as arms of the primary entity. In the US, it is the Federal Reserve. In England, it is the Bank of England. In Argentina, it’s the Central Bank of Argentina. In Europe, it’s the European Central Bank (ECB), etc. 

And nearly all of them are privately owned, not by the nations’ governments, despite the common presentment (and assumption) that they are. 

Unlike commercial and retail banks, central banks have a “legal monopoly status, which gives [them] the privilege to issue banknotes and cash.” 

Central banking is a complex topic, but this information, and a bit more I’ll address in another section, should suffice for understanding CBDCs.

What is a Central Bank Digital Currency (CBDC)?

A CBDC is a form of "smart money" issued by each country's central bank and operates on the blockchain. It's an entirely digital form of a country's fiat currency (the notes/bills, coins, and digital numbers with which we currently transact).

To use CBDCs, you must download the requisite mobile app issued by your government. These apps are algorithmically controlled by each country's central bank and their respective government, running on blockchain technology. 

Imagine something similar to the Apple Card/Apple Wallet but with an entirely different back-end functionality. 

And it's that back-end functionality that matters most here. 

Current System: Central Banks as Clearing Houses

A country’s central bank performs several activities. However, the one that most directly connects to our everyday lives is its function as a clearing house, settling transactions between banks each day.

So, what does that mean?

Let’s use two imaginary banks—Bank A and Bank B—to explain the clearing house concept.

Imagine that people who bank with Bank A spend a total of $30,000 today, and the recipients are customers from Bank B. (This could be via shopping, loaning, donating, or giving money to customers of Bank B.)

However, customers of Bank B only spend/give a total of $15,000 to customers of Bank A on that same day.

Bank A —> Bank B = $30,000

Bank B —> Bank A = $15,000

What do they have in common?

Each bank owes the other a minimum of $15,000. So, that first $15,000 that each owes the other cancels out. This is where the central bank steps in and transfers the remaining difference, $15,000, from Bank A to Bank B to settle the day’s transactions.

Bank A —> Bank B = $30,000-$15,000 = $15,000

Bank B —> Bank A = $15,000-$15,000 = $0

Advantages of the Current System

In such cases, all debit/credit/check transactions between customers of Bank A and Bank B are settled in batches, and in most cases, the only entity seeing your personal transactions is the bank you deposit your funds with. Therefore, the Federal Reserve (←insert your central bank’s name) does not see when, where, and with whom you transact.

Of course, by using cash, not even your bank knows the nature of your transaction. It lends a level of privacy that limits government control (brief video from Bank of International Settlements), which is precisely why TPTB seek to eliminate cash, shifting to a fully digital financial system of CBDCs. 

Stay with me—we’re about to explore how and why. 

How the Role of the Central Bank Changes with CBDCs

Unlike in the current system, your country’s central bank no longer functions as a “clearing house.” Instead, they issue you a digital wallet and retain complete control over it. The central bank eliminates the role of commercial and retail banks and becomes the bank for every individual within their respective country.

Based on current discussions by those involved in CBDC development, the central bank will settle the transaction between you and another party (your grocery store, for example) directly and immediately. The money leaves your digital wallet and goes straight to theirs.

Bank A and Bank B are no longer involved in the process. No more overnight settlements.

Super efficient.

Instant settlements.

Access to banking for the “un-banked.”

And safer too!

Sounds great, right?

Yes, those are great benefits, but they are benefits of using blockchain technology, not CBDCs.

CBDCs as a Control Mechanism

With CBDC digital wallets, your country's central bank and government have complete access to what you're buying, when you're buying it, and from whom you're buying it. But it's not people who will be monitoring it directly. Instead, it will be an algorithm.

And depending on what the instructions of the algorithm are, your ability to transact could be limited or cut off altogether. Of course, what these "instructions" are will rely entirely on the motives and agenda of The Powers That Be (TPTB) in your country (or the World Economic Forum (WEF) if your country's leader is a member).

A common retort I hear is, "I've got nothing to hide. So what do I care if my transactions are private or not?"

Yet, such a response ignores historical evidence for governments' predilections towards totalitarianism. We only have to look to current-day China to see how CBDCs, a social credit system, and a government-issued health app are destroying the fabric of Chinese society.

As Lord Acton wrote in a letter to Bishop Mandell Creighton in 1887, "Power tends to corrupt, and absolute power corrupts absolutely."

The Control of Spending

Most think nothing of CBDCs, failing to realize that they give governments power to control nearly every aspect of our lives. 

Distance

The WEF and global leaders frequently discuss the benefits of implementing “climate lockdowns,” in which governments restrict the distance you can transact from your home. 

Governments and central banks can program CBDC algorithms to limit your ability to transact outside of a set distance, courtesy of your phone’s constant tracking of your movements. For our purposes, let’s say it’s a 10-mile radius.

What if your dog requires special food due to health problems, and you must drive 13 miles to get it? When you go to purchase that food, the purchase will be denied by the algorithm via your wallet.

Or maybe commuting to your job requires you to buy 15 gallons of gas/petrol each week. What if they limit how much gas each person can purchase per week (to save the planet)? What if that limit is 10 gallons? Do you have to quit your job? What if you can’t find one closer to home? 

Consumption

CBDCs make implementing a carbon credit score system possible. Did you buy more than 3 ounces of red meat this week? Oops! Too bad. The app can deny your attempt to purchase any more that week. Better grab those crickets instead!

Or do you prefer dairy milk to soy milk? Sorry, time to give it up. You’re killing the Earth. Soy milk for you!

Or you have 3 pets, and the amount of pet food your purchase far exceeds anything TPTB have determined to be environmentally friendly. Transaction denied. You have to put some back. Your pets are killing the Earth. 

Or what if you just want to bake a pie at home, but the algorithm decides you’ve bought too many sugary products this month, so you’re denied sugar this time. It’s for your own good!

These may sound crazy, but they are based on everything the World Economic Forum and global leaders have discussed for several years. (I suggest you start paying attention to their talks and virtual summits.)

A recent article from CNN puts this all into rather harsh perspective: Our pets are part of the climate problem. CNN suggests that we give up our beautiful dogs and cats and get smaller pets, like turtles, mice, snakes, and birds instead, because they “have a smaller climate impact.” (So, what happens to all those cats and dogs in need of loving homes? Well, you do the math…)

Instant Taxation

There is also the potential for instant taxation. Most will see this as no big deal since they are employees and their employers make all the necessary deductions before issuing them a paycheck.

However, this can be deeply problematic for freelancers and business-owners. It could interfere with their cash-flow, and their ability to pay employees or pay for goods and services they need to work.

After all, cash flows are rarely consistent from month to month.

Even if algorithms are set to deduct a percentage of your business’ income each month (as opposed to instantly), this still interferes with an established rhythm of freelancers and businesses paying taxes quarterly.

And what if they tax you higher than you believe you actually owe? What recourse will you have? None of us can be sure.

Destruction of Savings

CBDCs give governments and central banks the absolute power to control how much money people save, thereby limiting people’s freedom to relocate, travel, renovate, you name it. 

Not only does this play into the climate agenda, it also prevents you from accumulating wealth.

If the government decides that people are not spending enough and the economy “needs stimulating,” they can set an expiration date on your digital dollars/euros/pounds/won, etc. 

Spend ‘em by the end of the month or lose ‘em!

Or maybe they decide to cap total savings at $3,000.

What if you need more than that for home repairs? What if you have to stay home and care for an ailing parent for several months and need more than that to live on but can’t save anymore?

You’re either forced to get a loan or apply for welfare.

TPTB are abolishing people’s ability to save and build wealth while they remain free to do so and live as they wish. That’s an openly discussed goal of the WEF. They put it out there for the world to see and hear. 

Canceling Individuals

Throughout 2020 and 2021, we saw hardworking people in both the US and Canada de-banked because TPTB didn’t like that them taking a stand against the narrative governments. And the “de-banking” was happening within the private sector—with pressure from the government. It was enough to make these people’s lives a nightmare, often leaving them unable to operate their businesses and support their families. For many people, their savings were frozen or seized. 

An attempt at forced compliance.

Whether you agree with these people’s perspectives or not is irrelevant. 

The point is that CBDCs make it even easier for governments to assume absolute control over each person’s wallet. If they want to quell a protest, all they have to do is shut down your wallet. Something similar happened in China this past year: The CCP turned protesters’ COVID health apps “red” (video), and government “health” minions quickly rounded them up and hauled them off to a quarantine camp (see the horror of such a place in this video link).

If this such unbridled government power does not concern you, imagine leaders from the opposite end of the political spectrum controlling your government. Now, think about a minute infraction they could punish you for. 

Did you make a joke about the President or Prime Minister on a social media account? Did you share a news article that didn’t align with the mainstream narrative? 

Having your wallet shut down could happen for even the tiniest infraction. How would you feel if your ability to purchase food depended 100% on your willingness to comply with every little directive your government issues? How much of a slave are you willing to be?

Loose Ends

What happens to commercial/retail banks?

One of the questions I hear asked most often is what would become of banks if we switch to CBDCs. Well, according to Christine Lagarde, President of the European Central Bank (former IMF chief), commercial banks would still exist, even with CBDCs, but their role would change. (link to a video from a Central Bank conference held in France on 27 September 2022)

How exactly? 

Lagarde doesn't go into much detail, but I suspect they'll exist simply to sell you loans (on behalf of the government), and the government would provide them with a commission. In short, glorified paper pushers and bank tellers would be a thing of the past.

New System Rollout

But then there is the question of the rollout. Would it be a sudden overnight switch from the current system to this CBDC-centric system because of a major global event? (Read: financial meltdown.) Or would it be a gradual rollout that overlaps with the current system? 

I sense it'll be the latter. The Fed is already doing a 12-week trial of their “Fedcoin,” and they have set the rollout for spring of this year.

If —and that's a huge IF—TPTB are smart, they'll ply you with "free" money to get you to download the government-developed digital wallet app onto your phone and participate in the system. It may start off nicely, and your life will feel easier in many ways.

But once enough people are hooked and dependent on the extra "free" money, they'll start imposing restrictions on who can use CBDCs.

Your willingness to comply will determine your access. 

You may need to meet specific health and medical requirements. 

You may need to hand over your biometric data and create a digital ID account with the government. 

Or you may have to give up your house and move to a "smart city" to continue receiving the money.

The possibilities are endless. We won't know until it happens, and it will no doubt be different in every country. And some countries will not even entertain the idea.

What about the elderly and non-tech savvy?

There would need to be a government-issued “debit card,” much like an EBT card (digital food stamps in the US). And this would be necessary because, at least for another generation, there will always be people who aren’t adept at using smart phones and computers.

The Final Power Grab

If you haven’t noticed, TPTB have been on a mission these last 3 years to absorb as much power and wealth as possible. So naturally, they champion CBDCs for the absolute control it gives them over the masses. 

An older and lesser-known version of the Lord Acton quote I cited earlier is from William Pitt, Earl of Chatham, former British Prime Minister. He once said in an address to the House of Lords in 1770:

“Unlimited power is apt to corrupt the minds of those who possess it.”

However, if TPTB carry on as they have been—that is, rather sloppily—they’ll make a blunder of it. Poorly functioning mobile apps. Vast amounts of red tape to start using digital wallets. You name it. It could happen.

These rollouts will mark the ultimate fork in the road for humanity. Will we comply with our own slavery? Or will we say enough is enough? 

Only time will tell.

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Video recommendation: I’ve searched rather extensively for a video to share with you that demonstrates how I suspect the financial system will change. While I haven’t found one that completely hits the mark, I think this video by George Gammon comes closest. He occasionally tosses in a political comment or two, but don’t be quick throw the baby out with the bathwater.

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Coming your way very soon via this Substack newsletter:

—“Best of” Book Lists (recommendations)

—The Hidden Truth About Money #3: Money Creation by Our Retail/Commercial Banks

—Current Events Dot-Connecting Overview

—Discussion of a barely known interview with Nikola Tesla from the late 1800s

—The Last Bastion of Peace in the West?