“First they ignore you, then they taunt you, then they fight you and finally you win”. This Apocrypha by Mahatma Gandhi sums up the hypocritical attitude of central banks towards Bitcoin. After having called it “rat death”, “Ponzi” or “scam”, all central banks are now working on “shitcoins”. And again, this name already does them too much honor.
“CBDC” (Central Bank Digital Currency)
The latest fad has a name consisting of four words. It begins badly…
At the same time, bankers couldn’t completely ridicule themselves using the term ” cryptocurrency “Since the CBDC is NOT a blockchain-based currency (cryptographic hash function). End of the suspense… The central banks maintain this coarse amalgamation between CBDC and Bitcoin to achieve a dark design…
TheCointribune discovered it by sifting through a research paper by the European Central Bank (ECB) on the CBDC published at the beginning of the year, on …..03 January…. A clear nod to Bitcoin since some people are used to celebrating their birthday on that day. The reason being that Satoshi Nakamoto included in the genesis block of Bitcoin an article title dated January 03, 2009. Take a look at my avatar at the end of the article if you’ve never seen it.
It is also a glimpse of the famous law of January 3, 1973 which prohibits the state from borrowing directly from the Bank of France. Law thereafter transposed into European Treaties in order to govern the functioning of the ECB.
This rascal law has deprived states of their sovereign right to borrow 0% currency. The false pretext advanced by the ultra-liberals being that a state will always be tempted to borrow again and again. As if the independence of central banks decreed all over the world from the 1970s had prevented countries from going into debt … No, it was transform the states into cash cows and tender their breasts (our taxes) to private bankers.
As such, let us rejoice that the British Prime Minister, as soon as he left the EU, fucked up the bankers by going to finance himself directly with his Old lady (Bank of England) at 0% rate. There is hope…
Before exposing the CBDC, let’s remember why Bitcoin has become a bankers nightmare…
There is no secret. Its success is due to a few characteristics that fundamentally differentiate it from the euro, the dollar, or any other so-called modern currency.
The main one is that there will be never more than 21 million Bitcoins. A number largely sufficient to oil the trade of several planets. It may seem counter-intuitive but Bitcoin is revolutionary in that it has 8 decimal places. It is possible to display a price as low as 0.00000001 Bitcoin (1 Satoshi in jargon). To put it another way, Bitcoin is divided into 2.1 million billion Satoshis. It’s a little more than 10 at the 16th power. In other words, there is room.
Bitcoin, like gold, is therefore what we call a store of value because of its forever fixed money supply. He is a inflation protection orchestrated by the increase in the amount of money in circulation 5% per year. This suggests, by the way, that real inflation is closer to 5% than the 1 or 2% advanced by INSEE.
The amount of money in circulation does not increase through the operation of the Holy Spirit. It increases as much as the debt. Yes, all money is created out of debt. Money is the shadow of debt …
And as this debt is matched of interests, it follows that the system has inevitably, mathematically, need for a debt in constant increase.
In other words, we use a currency carrying in it the seeds of debt and exponential inflation. The two only calming down by reducing rates to 0% (where they should have always stayed).[Et l’Allemagne n’est absolument pas un contre-exemple. Les teutons parviennent à réduire leur endettement uniquement parce qu’ils partagent la même monnaie que 18 autres pays qui s’endettent à leur place… Oui, les politiciens qui ont pour projet de rembourser la dette sont des charlatans complices des banquiers.]
Just look at property prices in France since 1900 to realize the magnitude of ambient inflation:
Peer to peer
Bitcoin therefore has the distinction of not being based on the forward flight of debt. Its second major characteristic is that it does not no need for a bank… It is this attribute that Satoshi Nakamoto preferred to highlight in the first line of his White paper.
“Bitcoin is a peer-to-peer currency allowing payments without going through a bank. “
Bitcoin is a currency with no no need for a bank to centralize everyone’s accounts. Bitcoins / Bitcoin transactions are engraved (chopped) in a blockchain whose Proof of Work (PoW) system guarantees that no one can ever duplicate / modify them. In other words, holding a Bitcoin wallet is like to be his own banker.
Unlike any digital file (mp3, gif, euro, dollar), it is impossible to duplicate a Bitcoin. No bank is needed to make sure everyone spends what they own and not a penny more. # double spending.
So while the debt creation money ponzi scheme promises perpetual inflation, the blockchain, prohibited Bitcoin devaluation.
I see you coming: “Yes, but in a system where only Bitcoin exists, how do you borrow to buy your house?” “
Excellent question. We must respond by revealing that the delusional rise in house prices (by far the biggest purchase of a lifetime) is directly linked to the fact that money creation from debt is intrinsically inflationary. Each new generation has to work harder and harder to buy four walls and a roof because inflation is at the heart of our monetary enslavement system.
CBDC – Appatt and Dark design
Before revealing the dark design behind the CBDC farce, let’s highlight two coarse baits found in the ECB paper. The latter argues that a CBDC created exclusively by the central bank could facilitate the emergence of what is called the “100% currency” (which, in my opinion, should actually be the monetary future).
This system consists of a transfer of money creation from the commercial banks to the central bank. Commercial banks would then no longer have the right to create money from scratch and would be forced to borrow it in full from the central bank.
100% currency is therefore the opposite of the current fractional reserve system. Reservaquoi system? This barbaric monetary system means something very simple: banks only need to borrow‘One euro at the central bank to be able to re-lend up to 33 (this is the real ratio) to households, the state or businesses, AND collect interest on these 33 euros…
Juicy right? French banks cash 160 billion euros per year in bank interest. This is the equivalent of the combined budgets of the Public Hospital, National Education and Defense.
I really apologize for insisting, but in the current system, banks create money every time they lend. This money is created ex nihilo because the banks actually only have a very small fraction (the one they borrow from the central bank). Hence the name: fractional reserve system.
So if you force the banks to borrow 100% of the money from the central bank, which they then lend to the economy, the central bank earns more of the interest. Interest that ends up in the public coffers since the ECB must return all its profits to the States …
You can still dream …
The bankers will do everything to never put in place the 100% currency. Also be sure that by adding in the paper that the CBDC would facilitate the currency helicopter, the ECB is still trying to get us coax. We had the example in the United States where senators tried to distribute the gift of $ 1,200 in the form of a new digital dollar (a CBDC). The Senate did not finally take the plunge and, for information, this $ 1,200 will be financed by good old public debt.
100% currency – Helicopter currency? The intentions of the ECB are actually much less encouraging… We can thus read that the CBDC would tax savings accounts via negative rates once paper money is eradicated …
Difficult to be clearer: central bankers are using the amalgamation between Bitcoin and CBDC to make cash disappear. They bait us with a coin-operated helicopter to in fine pump our savings without us being able to do anything (unless we defeat CRS armies). And I pass over the impossibility of paying anonymously …
The other option touched on by the ECB would be to introduce the CBDC as a new currency. A currency different from the euros created by commercial banks. A parallel currency. But here again, a major problem arises. Who would prefer to keep their money in a commercial bank that can go bankrupt when they can put it in the form of a CBDC with the central bank which will never go bankrupt?
The ECB also claims in its towel that the CBDC will greatly facilitate bank run! Ironically, when you hold us …
We said it, the CBDC is not a limited quantity cryptocurrency like Bitcoin. To create such a currency would be to destroy the system of debt slavery and inflation. No interest for bankers …
So if we sum up:
- Or all the euros are transformed into CDBC and it simply amounts to making the cash disappear. Taking people at this point for c … will take millions of people down the street.
- Or the CDBC presents itself as a new currency created by the central bank. In that case, bank run and bank failures will be greatly exacerbated during economic crises.
So to avoid this bankrunhold on tight, the ECB is considering establishing a very painful negative rate on the CBDC to discourage us from exchanging our BNP Paribas or Société Générale euros for CBDC …
Should we say more to understand that behind all these eccentric financial contortions hides a single motivation: make the cash disappear.
To finish convincing yourself, see how Ulrich Bindseil, lay of the ECB and author of the paper, praises Sweden – who hardly uses cash anymore – in this video presentation of the CBDC:
The Swedish are also the first to have voluntarily implanted microchips under the skin to make their payments. The “Scandinavian model”. Geniuses…
In conclusion, let’s say that the CDBC remains a currency based on an inflationary debt system. It has absolutely nothing to do with Bitcoin and its many advantages: Structural impossibility of duplicating it, anonymity, “permissionless”, speed of transfers, ridiculous transfer fees.
Cryptocurrency has a bright future ahead of it if, in addition, bankers have fun making cash disappear …
Find HERE our article on the CBDC shitcoin of the central bank of China.
Child of Satoshi, the alchemist who turned a cryptographic algorithm into gold.
I’m talking about monetary geopolitics, not shitcoins.