In this article we learn about the new Federal Reserve digital dollar currency wallet, how the new digital currency is different from Bitcoin and how the wallet may be used as tool for social engineering.
The Banking for All Act
During the midst of the COVID-19 crisis in 2020, Congress and the Senate quietly passed “The Banking for All Act.” The new law requires Federal Reserve “member banks to maintain pass-through digital dollar wallets” for Americans.
What is a Digital Dollar Currency Wallet?
“Digital dollar currency wallet means a digital wallet or account, maintained by a Federal reserve bank on behalf of any person, for the purpose of holding digital dollar balances.” – Website for the United States Congress, S.3571
The new digital dollar currency wallet is different than traditional banking. For example, interest is paid to the account holder. In addition, there are no minimum account balance requirements or account fees.
The ostensible purpose of the digital dollar currency wallet is to allow the Federal Reserve Bank to put money into American’s bank accounts. However, instead of collecting your personal banking information, the US Government is creating a new account for you. Additionally, during times of crisis (like the COVID-19 Pandemic), governments can provide welfare payments to citizens. Unfortunately, allowing a central government to control your money may not be a good idea.
Some people are concerned that allowing government bureaucrats to control your money via a digital dollar currency wallet may be giving them too much power. For example, what if the administrators of your digital dollar currency wallet decide that you are purchasing things that are not acceptable? Perhaps you bought too much beer or cigarettes using your account.
Would the Federal Reserve Bank then freeze your digital dollar currency wallet, preventing you from buying anything? If you think this is impossible, it’s not. Governments can easily change citizen’s behavior by controlling money.
China’s Social Engineering Experiment
China Limits Citizens Freedom with Social Credit Score
Think governments limiting citizen’s freedoms is a conspiracy theory? Think again. In early 2019, a report stated that China banned more than 20 million people from traveling. This was because their “social credit score” was too low.
“Skipped paying a fine in China? Then forget about buying an airline ticket. Would-be air travelers were blocked from buying tickets 17.5 million times last year for “social credit” offenses including unpaid taxes and fines under a controversial system the ruling Communist Party says will improve public behavior. Others were barred 5.5 million times from buying train tickets, according to the National Public Credit Information Center. In an annual report, it said 128 people were blocked from leaving China due to unpaid taxes.”– AP News Article entitled, “China bars millions from travel for ‘social credit score’ offenses” – February 22, 2019 by Joe McDonald
Social Engineering occurs when governments attempt to influence people’s decisions through incentives or disincentives.
“the use of centralized planning in an attempt to manage social change and regulate the future development and behavior of a society.” – Social Engineering defined, Google Dictionary
The Federal Reserve Exploring Distributed Ledger (Block Chain) Technology
For several years, the US Federal Reserve bank has been researching distributed ledger technology. This technology, also known as block chain technology, is part of the building blocks of the cryptocurrency Bitcoin.
“With these important issues in mind, the Federal Reserve is active in conducting research and experimentation related to distributed ledger technologies and the potential use cases for digital currencies.” – Federal Reserve Governor Lael Brainard on August 13, 2020
Distributed Ledger (Block Chain) Technology: Bitcoin vs Digital Dollar
The functionality of Bitcoin depends upon miners who contribute to the system. The miners use computers to complete complex calculations which build blocks on the block chain. The miners are paid Bitcoin when a block is completed. Without miners, the block chain would cease to operate and transactions would grind to a halt.
As a result, it is unclear how the Federal Reserve Bank will operate their digital dollar currency wallets using distributed ledger technology. The new system will likely be a simple, centralized network that does not use the proof of work model of solving equations like Bitcoin.
American Universal Basic Income
There’s a concern among some that digital dollar currency wallets will lead to the formation of a welfare state in the United States. Moreover, if the Federal Reserve Bank has the ability to print currency to no end, creating money out of thin air, then why not give some directly to citizens?
“Universal basic income (UBI) is a government program in which every adult citizen receives a set amount of money on a regular basis. The goals of a basic income system are to alleviate poverty and replace other need-based social programs that potentially require greater bureaucratic involvement.” – –Investopedia, Universal Basic Income
By creating a special bank account or digital dollar currency wallet for American Citizens, the Federal Reserve Bank opens the door to the welfare state and to collective control of its citizens. This kind of quid pro quo banking keeps the masses under the thumb of government.
The New American Socialism: Universal Basic Income
43% of Americans Believe Socialism is a Good Thing
Providing Americans a digital dollar currency wallet is a form of socialism. Historically, America has been a population that embraced capitalism and entrepreneurship. However, beliefs in the 21st century appear to be changing. In fact, Americans may be approaching a tipping point regarding the adoption of socialism.
According to a 2019 Gallup Poll, 43% of Americans believe that socialism is a good thing. In contrast, only 25% of Americans supported socialism in 1942. Clearly, Americans have shifted to believe that socialism is a positive thing.
The socialist idea of a universal basic income has become a mainstream political issue in 2020. Andrew Yang, an American entrepreneur, ran as a presidential candidate in the 2020 Democratic primaries. One of the policies of his political platform was to create a universal basic income for Americans. He called it the “Freedom Dividend” in which every American would receive $1,000 each month. This idea was wildly popular among many younger voters.
Digital dollar currency wallet: Coming Soon
Originally, the Fed’s new digital dollar currency wallet was planned to be introduced in late 2020 by the Federal Reserve Bank. However, things are running behind schedule. Many believe that sometime in 2021, everyone in the United States may have a digital dollar currency wallet.
“All Federal reserve banks shall, not later than January 1, 2021, make digital wallets available to all residents and citizens of the United States” – Website for the United States Congress, S.3571
It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.
In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.