A new central bank digital currency (CBDC) is coming to the United States that many are calling “Fedcoin.” Fedcoin is the new digital currency created by the Federal Reserve Bank of the US, which features it’s own digital wallet. Will Fedcoin replace the US Dollar? In addition, learn how the new digital currency is different from Bitcoin and how the wallet may be used as tool for social engineering.
“Banks, credit card companies and digital payments processors are nervously watching the push to create an electronic alternative to the paper bills Americans carry in their wallets, or what some call a digital dollar and others call a Fedcoin. As soon as July, officials at the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology, which have been developing prototypes for a digital dollar platform, plan to unveil their research, said James Cunha, who leads the project for the Boston Fed.” – Bloomberg News Article, March 22, 2021
Although the Federal Reserve and MIT are planning on revealing their research in 2021-2022, rollout of the Fedcoin electronic currency may take years. Will Fedcoin replace the US Dollar? If Fedcoin will replace the us dollar, US Legislators may be involved.
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.
Will Fedcoin Replace the US Dollar? + Fedcoin Digital Dollar Wallet
If the Fedcoin will replace the US Dollar, there must be a digital wallet to accompany the Fedcoin.
“Digital Dollar 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 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 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. Will Fedcoin replace the US Dollar? Well, the Fedcoin can replace the US Dollar in the digital space, negating the use of the paper dollar.
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 wallet may be giving them too much power. For example, what if the administrators of your digital dollar 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 Fedcoin wallet, preventing you from buying anything? Will Fedcoin replace the US Dollar? If you think this is impossible, it’s not. Governments can easily change citizen’s behavior by controlling money. Furthermore, answering the question, “Will Fedcoin replace the US Dollar?,” may occur whether you like it or not.
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 Fedcoin
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. Miners receive payment subsequent to completion of a block. 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 Fedcoin and the digital dollar 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. Will Fedcoin replace the US Dollar? There is no doubt that Fedcoin will replace the US Dollar. However, Bitcoin will remain a decentralized store of value.
It is important to understand that there is a critical difference between the cryptocurrency Bitcoin and Fedcoin. The primary difference is that Fedcoin is a centrally controlled, top-down currency. It does not use blockchain technology or a distributed ledger with a proof of work system. Fedcoin is simply numbers on a computer screen put there by a central bank.
Bitcoin (BTC) Explained
The Cryptocurrency Bitcoin is a Peer-to-Peer Cryptocurrency Payment System That Was Founded in January 2009 by Satoshi Nakamoto
Bitcoin is an open-source, block chain-based technology. It was designed as a peer-to-peer payment system. It is designed to be a decentralized electronic payment method. Furthermore, it can be conducted semi-anonymously among individuals. It is intended to be a digital cash.
Using block chain technology to maintain its functionality, Bitcoin miners contribute to the system. In order for users to send and receive bitcoin, the block chain depends on miners. Moreover, computers are used by miners to complete complex calculations which build blocks on the block chain. As a reward, the miners receive Bitcoin as payment when each block is completed.
Bitcoin was introduced to the world in January 2009. It is unknown who invented bitcoin; however, a developer named Satoshi Nakamoto (probably a pseudonym) released a 9-page white paper entitled, “Bitcoin: A Peer-to-Peer Electronic Cash System.” The Bitcoin white paper describes Bitcoin’s purpose and how it works.
American Universal Basic Income
There’s a concern among some that digital dollar 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 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. As a result, when Fedcoin will replace the us dollar, it will also play an important role in the growing social welfare state.
The New American Socialism: Universal Basic Income
43% of Americans Believe Socialism is a Good Thing
Providing Americans a digital dollar 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. Will Fedcoin replace the US Dollar? When Fedcoin does displace the US Dollar, it is a way for the state to buy more votes for socialsm.
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.
Wrap Up: Will Fedcoin Replace the US Dollar?
It seems clear that Fedcoin will replace the us dollar. The Federal Reserve, MIT and others in the US government are working hard to bring the plan to fruition. The new digital dollar wallet will be introduced sometime in 2021 or 2022 by the Federal Reserve Bank and MIT. Sometime later, everyone in the United States have a digital dollar wallet with Fedcoin in it.
“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
Are you ready for Fedcoin?
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