Global Central Banks Testing New Software to Destroy Bitcoin

 

In writing about central bank digital currencies (CBDCs), we’ve made the point that the government has to destroy any alternatives in order to force people to use CBDCs in the first place.

The dangers of CBDCs are obvious. They include government surveillance of your transactions, the use of artificial intelligence to profile you based on those transactions, then simply freezing your account or confiscating part of your wealth once you are declared “an enemy of the people” as Joe Biden labeled Trump supporters in his infamous September 2022 speech in Philadelphia (the one with the blood red lighting and military guards on his flanks).

With CBDCs, it’s easy to impose withholding taxes directly from your bank accounts or dictate “use it or lose it” fiscal policies where the government takes part of your money if you don’t spend it fast enough.

There are some obvious alternatives to CBDCs. The two most obvious are cash and cryptos. Cash works fine for smaller transactions, but it becomes impractical for large deals like buying a house or a car. Cryptos are easier to scale but are quite limited in acceptance and the crypto industry has been plagued with frauds (FTX), exchange failures (Binance), and hacking.

Regardless, the government is out to eliminate cash and crush crypto to force you into CBDCs. The war on cash is in full swing; fewer stores accept it, the $100 bill has shrunk to only $10 of purchasing power compared to the 1960s when they eliminated the old $500 bill, and currency transaction reports (CTRs) sent to the Financial Crimes Enforcement Network (FinCEN) make it impossible to get more than $10,000 in cash from the bank anyway without being reported to the Feds.

The war on crypto is even more intense, as described in this article. The Bank for International Settlements (BIS), better known as the “central bankers central bank”, has been testing software that can track every bitcoin transaction in the world.

The code name for this project is Atlas, and it draws data from both public ledgers, and it is more difficult to find “off chain” ledgers maintained by some exchanges. BIS claims this is for risk management purposes. But obviously the main risk is crypto itself as an alternative to CBDCs.

When the time comes, they’ll be able to shut down the bitcoin market because they’ll know the largest holders and key nodes in the system. With CBDCs coming and alternatives like cash and crypto being shut down, is there anywhere for individuals to turn? Yes. The next form of money may be the oldest form of money – gold and silver coins.

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