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White House Explores Plans for Centralized Digital Currency, Here’s Why It’s a Bad Idea

The popularity of cryptocurrencies has grown significantly over the past few years. In certain instances, there has also been a rise in value to go along with it. Going overboard with cryptocurrencies as your investment strategy carries significant danger, though, as it is significantly more volatile than other assets.

Although many people lament the falling value of the US dollar, Bitcoin has dropped 72% in value over the last 10 months. In the past ten months, the value of Ethereum has decreased by almost 74%.

In my opinion, it will most certainly rebound, but not for a while. You could try buying some Bitcoin if you have an additional $10,000 you’re ready to lose in exchange for a potential large payout, but I don’t even believe we’ve reached the bottom yet.

The White House has indicated a desire to develop its own digital money.

According to the Epoch Times,

The Biden administration is “closely examining” the possibilities for issuing a central bank digital currency (CBDC) based on a technical report prepared by the White House Office of Science and Technology Policy (pdf), along with other reports.

“If the U.S. pursued a CBDC, there could be many possible benefits, such as facilitating efficient and low-cost transactions, fostering greater access to the financial system, boosting economic growth, and supporting the continued centrality of the U.S. within the international financial system,” said Alondra Nelson, head of the White House Office of Science and Technology Policy in a press briefing on Sept. 16. “However, a U.S. CBDC could also introduce a variety of risks, as it might affect everything ranging from the stability of the financial system to the protection of sensitive data.”

Based on Executive Order 14067, a central bank digital currency system should integrate seamlessly with traditional forms of the U.S. dollar, improve existing payment systems, ensure global financial interoperability, advance “financial inclusion and equity,” protect national security, “provide ability to exercise human rights,” and “align with democratic and environmental values, including privacy protections,” the technical report states.

There is one major problem with switching to a centralized digital currency and that is the fact that they can do with it as they please. If they want to shut you off, they can shut you off. If they want to charge you an exorbitant amount of fees to hold it for you or for you to be able to withdraw it.

Don’t think it can happen? Well, I wouldn’t be so sure about that. It has happened in other places. While it is highly unlikely that anything is going to happen to us as a country that would be cause for something like this to happen, it’s not out of the realm of possibility if we end up in World War III.

Personally, I’ve never had any issue with trying to withdraw my own money. The only times where issues normally arise for people is when there is a large amount being deposited into an account and they want to withdraw it before it clears entirely. Banks aren’t wanting to take on too much risk because what if the check bounces after you withdraw $20,000? That becomes their loss.

However, something recently happened in Lebanon where a bank wasn’t allowing a woman to withdraw her own money so she took things to drastic measures and robbed the bank at gun point just to get her own money out of her account.

We are a much different country than Lebanon, but don’t think that the government is going to be any more kind with your money if they have ultimate control over your money.

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