Business News Asia
The Bank for International Settlements (BIS) is a bank that not many people have on their radar, but it is something like the supreme central bank – or the central bank of central banks.
The BIS is currently working with seven central banks to develop a central bank digital currency (CBDC). These central banks include the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, Sveriges Riksbank, and the Swiss National Bank. Together, they want to establish the so-called “retail CBDC” for use by the general population.
In a video, the General Manager of the Bank of International Settlements (BIS), Agustin Carstens, explains why, from the central banks’ point of view, the CBDC is important, and that is, first of all, the control over the spending of this CBDC.
Agustin Carstens said literally, ” In cash, we don’t know who’s using a $100 bill today and we don’t know who’s using a 1,000 peso bill today. The key difference with the CBDC is the central bank will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability, and also we will have the technology to enforce that. Those two issues are extremly important and makes a huge difference in respect to what cash is.”
This is now the official confirmation that CBDC is primarily a control tool to see who spends what amount on what. This leads to one of the biggest problems of our time and that is the centralization of the monetary system. When such power is centralized it can be very easily abused. This is what happened in Canada when the current Canadian government froze the bank accounts of people with different opinions. But, the statement of Agustin Carstens also says one thing, that cash is a piece of freedom.
In the end, it is in the hands of the people, even if they don’t know it. Fiat currencies are forced means of payment by the government. The currencies we use today have no intrinsic value, their value is based on the faith of the people who use them, that this unit of currency will allow me to exchange it for the goods I want.
A fiat currency, and thus the powers behind it, will fall as soon as the population loses faith in the currency and looks for other mediums of exchange, such as gold, silver, or Bitcoin.
This is what happened in countries with hyperinflation like Venezuela or Zimbabwe. In these countries, people are avoiding their local currency and instead of using other currencies like the U.S. dollar or even gold as a medium of exchange.