Central Bank Digital Currencies (CBDCs) are ‘easier, safer, faster, cheaper. What’s not to like? A lot’.
That is, according to The Daily Reckoning Australia’s veteran strategist, Jim Rickards.
Today, nearly everything is done digitally.
Even most of our payments are made online — so how would we react if cash, as we’ve always known it, a tangible thing to hold in our hands, were to disappear?
With the ongoing phenomenon that is cryptocurrencies embedding themselves further into everyday trade and payment schemes, many progressive countries are adopting them as official currencies.
Is it much of a surprise that governments and banks are practically now saying ‘why not us, too’?
Of course, having a currency wholly moved to a digital platform means they may have the ability to see where every cent goes, from who to who, why, and what for.
The fact the government is so charmed by this idea has raised a lot of questions and has resulted in much confusion around what a CBDC is and what it might mean for us.
If we’re really to be taking on this programmable dollar, it’s certainly worth asking ourselves: How much do we really understand about this concept?
Rest assured, our veteran strategist, Jim Rickards, with 35 years of experience working on Wall Street and many years as a trusted investment advisor, has provided a breakdown of some of the mystery and intrigue surrounding the elusive CBDC in a short and concise interview.
Known as a successful capital markets and strategies expert with a history that includes negotiations of Long-Term Capital Management alongside the US Federal Reserve and advising the Office of the Secretary of Defense in the Pentagon, Jim is a resounding resource for straight answers and no-nonsense explanations.
As a master of major financial events and cycles, Jim has a record of making accurate predictions, often many years before they happen.
If you’re already familiar with Jim’s work, you’ll know he’s been a solid port-of-call for industry insights for decades and has a knack for pinpointing notable patterns that could violently impact economies many years before they become widely recognised.
He makes it his personal business to know exactly what’s happening and why, as well as the likely implications down the track.
In this interview, Jim offers his wisdom on CBDCs and all they represent, addressing some of the biggest concerns and offering a holistic description of them that’s not so easily found.
This is a must-watch video for anyone curious about what could be the biggest monetary change since the credit card system went global back in the 1960s.
Is a CBDC another form of cryptocurrency? If not, what are the differences between them?
Will the government be able to learn everything about us if we use CBDCs?
How does a CBDC differ to the already existing digital money system — the Online Payments System?
Jim touches on these anxieties and many more — some of which include:
- The two main differences between CBDCs and cryptocurrencies
- Day-to-day life with CBDCs, how they can be convenient and appealing
- The effects of inflation and purchasing power in today’s money
- CBDCs as a replacement to cash
- Digital currency intricacies — what it could mean if we all go digital
Jim says ‘alternatives to the Digital Payments System, kind of defeat the purpose of the Digital Payments System’. In the interview, he explains why the government would prefer to move to CBDCs rather than rely on the existing system.
He also explains some of the rationale behind eliminating certain intermediaries, claiming that ‘bankers are dumb’ and that they ‘screw up the entire world every 10 years — or on a regular basis’.
Access this interview to get the full picture of CBDCs and to expand your knowledge of the impacts they could make to your wealth and current understanding of the global monetary system.
If you liked this video, you can also learn how to defend yourself as the programmable dollar hits here.
For more of Jim Rickards’ exclusive insight, matched with specific stock recommendations based on the Australian market, click here.
For The Daily Reckoning Australia