Yesterday, the Federal Reserve Bank of Boston, along with MIT, released their research on the proposed central bank digital currency. It is said to be able to process 1.7 million transactions per second, but at the end of the day it's still dollars.
There is much discussion about the U.S. developing its own central bank digital currency (CBDC) to speed up transactions, shorten settlement times and facilitate easier cross-border payments.
China is in the process of establishing its own digital yuan and has conducted several pilots so far. Many believe its ban on cryptocurrency mining and all cryptocurrency trading in the country is meant to pave the way for its own digital currency.
So far, the Fed has made noises that the digital dollar is not really the preferred path for the US. However, this is starting to look like a smoke screen, and judging by yesterday's announcement, it looks like a lot of work is going on behind the scenes.
A proud statement issued by the Boston Fed said that in addition to being able to support 1.7 million transactions per second, most transactions are touted to be completed in less than two seconds.
In a Market Watch article covering news from the Federal Reserve, it was said to be "far outperforming popular cryptocurrencies". The same article highlights how Bitcoin can only process 7 transactions per second, while Ether can only process 25 transactions per second.
What the article fails to mention is that we will still have a currency that has lost more than 96% of its value since the Federal Reserve overtook the U.S. monetary system in 2013.
If the central bank digital dollar remains exactly the same as the debt-based system, does it have any beneficial power?
Finally, there seems to be a theme in the mainstream media that the proposed new Fed coin is actually a cryptocurrency, but one that is far superior to other cryptocurrencies.
In addition to the ones mentioned above, many cryptocurrencies have a limited supply of tokens. More and more tokens cannot be imposed on the market, thus diluting the value of all those who hold them.
If you hold Bitcoin, Ether or most other cryptocurrencies, they are yours. They can't be taken away from you. You are effectively your own bank, with no intermediary, and you can pay anyone you want without any central bank saying you can't.
The endless stream of almost worthless paper money or the tapping of a keyboard means that the mainstream media can pay to write the version of the truth that the government, the banks or the powers that be want.
Anyone "awake" enough to explore what is actually happening in the financial system should take some serious time to educate themselves about the cold, hard reality of what is actually happening. Failure to do so could mean a long, hard road ahead.
Disclaimer: This article is for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.