This Government Initiative Has Me Scared to Death
Folks, I'm scared.
Hardly anyone is talking about the upcoming digital currency. In fact, most aren't even aware that it's due to launch this summer.
That means they have no idea what such a currency will mean for their privacy...
And, spoiler alert, it isn't good.
For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.
This Government Initiative Has Me Scared to Death
Last week, we learned that Florida governor Ron DeSantis is opposed to the upcoming central bank digital currency ("CBDC"), or what I like to call a digital dollar.
DeSantis noted that adopting this currency would be "reckless," and that he has a duty to "protect Florida consumers and businesses."
The thing is, he's not the only one who feels this way. And it's becoming clear that the increased opposition means we should be wary of what's to come...
Tracking Your Every Transaction
Before I go further, however, let me set the stage.
Starting in July, the federal government aims to migrate us to a central financial transaction system, wherein every financial transaction that you, I, and everyone else makes is visible to the central government.
Now, you might think that just because they can look at your transactions doesn't mean they're actually going to, right?
The government has specifically said it's going to track all our transactions – for national security purposes, of course. They have to keep an eye out for the bad guys. (Note the sarcasm here.)
To some, that excuse might be comforting. But to me, it's downright frightening. Here's why...
Why I'm So Scared
It's one thing to look at what I'm spending my money on. But it's an entirely different power to control my spending. And under this CBDC, the government will have the power to block you from spending your money. That's scary!
It's happened in China. It's happened in Russia. And now it appears to be inevitable in America.
I say it seems inevitable because this initiative involves heavy control by the central government. And Democrats love their central governments.
But perhaps this digital dollar isn't set in stone quite yet...
Here Comes the Resistance
That's because Republicans are stepping up and saying, "No. We don't like this. We're fans of privacy."
Until recently, they've been gentle with respect to their disagreement, simply asking questions to obtain more information. But now, the gloves are off.
We learned DeSantis' views on the digital dollar. And a few days ago, Florida senator Marco Rubio announced plans to introduce legislation intended to block the CBDC. Said Rubio, "The federal government has no authority to unilaterally establish a central bank currency."
Rubio plans to put a bill together with senators Charles Grassley of Iowa and Mike Braun of Indiana. Recently, Grassley said, "The American people ought to be able to spend their money how they choose, without the possibility that every transaction could be tracked by the government."
Additionally, Texas senator Ted Cruz voiced concerns that not only would a CBDC pose privacy issues, but it would also pose security risks. Having a centralized financial system would leave it vulnerable to attack – sort of a Fort Knox for the digital age.
So, why does all this opposition matter, especially if the CBDC is inevitable?
Think of the Politics
About 158 million people voted in the 2020 presidential election. And around 27 million – 20% of the total turnout – voted in the four states I mentioned above (Florida, Iowa, Indiana, and Texas).
That's a big chunk of voters. And they're being represented by folks who are standing up and saying "no" to a digital dollar.
Folks, this is worth paying attention to. The CBDC is scheduled to go live in July. But it's almost April, and the opposition is just starting to take action. We're at the 11th hour right now.
Those opposed to the CBDC are worried about privacy concerns. And amazingly, the government has acknowledged that surveillance will be part of this digital dollar. It actually intends to spy on individuals!
The Craziest Part?
That may seem like the craziest part of this whole story. But here's something else to consider...
Democrats have traditionally been the ones to back things like big tech and bitcoin. But strangely, Republicans are in favor of bitcoin – at least compared to a CBDC.
A main bitcoin benefit is privacy. And Republicans value their privacy. They like the idea of bitcoin, as long as it means no additional government control.
But the fact that Republicans are advocating for cryptocurrencies is driving Democrats nuts.
We've Only Just Begun
The battle over this digital dollar is picking up steam. Once thought to be coming to a theater near you this summer, the CBDC is starting to look far from being a done deal.
Stay tuned because I'll update you on the latest. And in the meantime, "Pro" subscribers can get access to one of my favorite ways to play this digital dollar dilemma. It's a banking stock that's trading at a major discount...
And if history is any guide, it has the potential to nearly double very soon. Don't miss out.
We're in it to win it. Zatlin out.
TRADE OF THE DAY
[ ACTION TO TAKE ]
FOR MONEYBALL PRO READERS ONLY
>>>>>>>>>> Learn more <<<<<<<<<<
In it to win it,