He better watch his back saying stuff like this, but I agree with him 100 percent.
President Trump promises to block the creation of a Central Bank Digital Currency (CBDC) in America:
"Such a currency would give the federal government absolute control of your money. You wouldn't even know it was gone. This is a dangerous threat to freedom and I will stop it."
doesn't seem like a whole lots good could come out of it. For what its worth....ChatGPT:
How would the creation of Central Bank Digital Currency in America where the federal government has total control affect the country?ChatGPT
The creation of a Central Bank Digital Currency (CBDC) in the United States, where the federal government has total control, would have several significant impacts on the country, both economically and socially. Let's explore these potential effects:
Increased Efficiency in Payments: A U.S. CBDC would likely streamline payment systems, making transactions faster and more efficient. This could be particularly beneficial for cross-border payments, which are currently subject to delays and high fees.
Enhanced Financial Inclusion: A digital currency could provide greater access to financial services for underbanked or unbanked populations who might not have easy access to traditional banking but do have access to digital devices.
Impact on Banks and Financial Institutions: With a CBDC, the role of commercial banks could be altered significantly. If people hold and transact directly in CBDCs, banks might see a reduction in deposits, potentially affecting their primary role in lending and capital formation.
Monetary Policy Implementation: The Federal Reserve would have a new, potentially more direct tool for implementing monetary policy. For instance, interest rates could be applied directly to the digital currency, potentially enabling more precise management of economic levers.
Privacy and Surveillance Concerns: A government-controlled digital currency could raise concerns about privacy and surveillance. The government's ability to track financial transactions could be seen as an infringement on personal liberties.
Security and Risk Management: While digital currencies can offer enhanced security features, they also present new risks, such as cybersecurity threats. The government would need to ensure robust security measures to protect against hacking and fraud.
Reduced Reliance on Cash: A CBDC would likely lead to reduced use of physical cash. While this could be convenient, it also raises concerns, particularly among those who rely on cash transactions.
Competitiveness in the Global Market: Internationally, the introduction of a U.S. CBDC could strengthen the dollar's role as a global reserve currency and enhance its competitiveness against other digital currencies, including cryptocurrencies and CBDCs from other nations.
Potential Impact on Cryptocurrencies: The introduction of a government-backed digital currency could affect the cryptocurrency market. It might either validate the concept of digital currencies or lead to increased regulation and oversight of decentralized cryptocurrencies.
Legal and Regulatory Framework: Implementing a CBDC would require comprehensive legal and regulatory frameworks to address issues like digital rights, currency management, and compliance with international financial standards.
In conclusion, the introduction of a CBDC in America would be a transformative step, potentially redefining the financial landscape. It would require careful consideration of various economic, social, and technological factors, along with robust policy frameworks to mitigate risks and maximize benefits.
What are the potential bad things that could happen to the middle class as a result of this?ChatGPT
The introduction of a Central Bank Digital Currency (CBDC) in the United States could have various potential adverse effects on the middle class. While CBDCs offer many benefits, it's important to consider the potential downsides:
Reduced Privacy: With a CBDC, transactions could be fully traceable by the government. This might lead to concerns about privacy for middle-class individuals, who might feel uncomfortable with the government having access to their transaction data.
Cybersecurity Risks: The digitization of currency increases the risk of cyberattacks. Middle-class individuals could be vulnerable to hacking, fraud, or theft in a system where their savings and transactions are entirely digital.
Dependence on Digital Infrastructure: The effective use of a CBDC requires robust digital infrastructure. Middle-class individuals in areas with poor internet connectivity or those less tech-savvy might find it challenging to adapt to a fully digital currency system.
Disruption to Traditional Banking: The introduction of a CBDC could disrupt the traditional banking system. If the middle class moves their savings from banks to a CBDC system, it could affect the banks' ability to lend and might lead to changes in interest rates, potentially impacting mortgages, loans, and savings.
Job Displacement: The digitization and automation associated with a CBDC could lead to job displacement in certain sectors, such as banking and financial services, where many middle-class individuals are employed.
Economic Control and Policy Changes: With a CBDC, the government gains greater control over monetary policy implementation. If not managed carefully, this could lead to policies that might inadvertently disadvantage the middle class, such as negative interest rates on digital wallets.
Transition Costs and Complexity: The transition to a CBDC could be complex and costly. This might involve indirect costs for the middle class, such as the need to upgrade technology or learn new systems for managing finances.
Potential for Financial Exclusion: While a CBDC has the potential to increase financial inclusion, there's also the risk that those uncomfortable with digital technology or without access to it could become financially excluded.
Impact on Small Businesses: Many middle-class individuals run or are employed by small businesses. A shift to CBDC could impose new challenges for these businesses, especially in transitioning to digital-only transactions.
Economic Instability during Transition: The introduction of a CBDC could lead to short-term economic instability as the system adjusts. This instability could disproportionately affect the middle class, particularly in areas like investments and savings.
It's important to note that these potential downsides can be mitigated through careful planning, robust infrastructure, and inclusive policies. The actual impact would depend on the specific design and implementation of the CBDC system.
