CBDCs (Central Bank Digital Currency), Discussion 3

Some points to counter

So, it turns out that some people hate it when some people start an essay out with the word, “so.”

So I will try to refrain.

Irregardlessly of pet peeves, (one of mine is when people say, “irregardlessly…”,) I wanted to host an exchange with a perspective offered by a reader who, having perused my initial offering on CBDC, had some things he agreed with and some, not so much. The contributor shall remain nameless until such time as he wishes to publicly engage.

Dear Reader begins:

Argument FOR digital currency.

1. Convenience. Man, it is easy to not deal with cash. And I don't have to watch millennials try to make change.

First of all, points for noting millennials’ inability to make change. Whenever I see it [this small act of competence displayed], it puts a little smile on my heart. “There is hope,” I think… then reality comes crashing back when they finish their next sentence with, “right??”

But more to the point: convenience is outrageously overrated in my opinion, especially when it is demonically leveraged to separate us from our liberties and our privacies. (Right?)

I would (and have) gone so far as to say that I would happily give up the microchip if it meant a return to the social construct we as a culture enjoyed before social media. And before you cry, “but… medical advances…” my pre-response, post covid is…. “really?”

2. No need to loan people money when they "forgot their wallet."

There is a simple solution to this problem: don’t loan people money. Also, is it really that big a problem to loan small amounts of folding money to someone [with whom you are presumably comfortable enough] that they would ask for the loan?

3. Instant transaction. Someone has a marker at poker, I don't have to wait until they play again to get paid. They send me money electronically right then.

Again, with the convenience; I argue, again, that regardless of the benefits measured in utility of convenience, they pale in comparison to the liberties, freedoms, and privacies we surrender due to this utility.

In fact, I would also argue (not with facts but with anecdotal observation and experience) that this is exactly what “THEY” (whoever “they” are) are hoping for and expect: that the general populace loves their conveniences so much that we would all be willing to sacrifice autonomy for this [relatively] small benefit. How better put than, “you’ll own nothing and be happy?” In fact, a CBDC all but eliminates the idea of “private property.” How can it be property if it can be taken from us at will, without due process, simply based on a random set of moral codes we call a “social credit score?”

Not in the United States? It’s already in our rear-view window. We already lose our livelihoods due to unacceptable speech. Without due process. How is this any different from losing our property/money?

4. Who cares? Enough of the economy is already digital, what is a few bucks in my wallet going to change?

This belies a misunderstanding of the stated implications of a CBDC: the new digital currency would not only be the EXCLUSIVE legal means of trade but would be programmable as well. There will be no alternative to digital trade, no physical-currency-way-around-it. And with the power to control all legal trade at a micro-personal level, this forced method of trade would be subject to the rules placed on the currency at the whim of the central bank that controls the currency. If your “carbon footprint” is too big for the purpose you serve in society (coughcoughbillgates) then you lose some of your spending (trading) power. If you eat too much meat and not enough bugs, your ability to buy animal products is throttled and the unlimited availability of bug-powder is provided to you personally!

The answer is: this changes everything.

5. If THEY want to restrict my ability to spend money, THEY can freeze my bank accounts. Today. As I'm typing if THEY choose.

True. Just ask the Canadian truckers.

Yet however despicable this eventuality may be, it is currently binary: in this case, you either have access to your money or you don’t. This creates a much harder “sell” for those who are seeking to freeze your assets. A much easier sell is to convince the populace that, in the name of social welfare and quality of life, the incremental throttling and selective disallowance of individuals’ access to their funds is a socially responsible plan. There’s a huge difference between throttling and stopping. One is way more obvious.

6. Think of all the tax revenue THEY would collect if people didn't avoid taxes through cash transactions.

This goes without saying, and I can’t see how it is counted as a benefit to the layperson. Unless you think you’re not being forced to donate enough to the mutilation of minors and murder of babies as it currently stands.

Dear Reader concludes: (rather correctly, I agree,)

Now, WHEN digital currency takes over, society will go back to your first stage of voluntary exchange, trading goods/services for goods/services. Mow my lawn kid and I'll give you a dozen eggs. Truth is, it's coming and there is nothing we can do to stop this from happening. I've read Revelation. S**t gets real right before the end...