Your Next Trip to the Bank May Be Your Last

by Andrew Zatlin

Earlier this year, the Fed started flirting with creating a “digital dollar.”

Is it trying to be innovative? Or is it just fearful or greedy?

Today, I’ll reveal the real reason it’s jumping into this game.

Then I’ll explain why it could spell an end to traditional banks — and why it could be a boon for your investment portfolio.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Your Next Trip to the Bank May Be Your Last

The U.S. Federal Reserve is all fired up about creating a digital dollar.

Makes sense.

For one thing, it would be a money saver…

The Fed spends $1 billion a year just to print our money. And the U.S. spends $600 billion a year just to keep the banking system afloat. That’s 85,000 branches and 1.2 million employees.

So getting rid of paper money would lead to massive cost savings.

But secondly, we basically use digital dollars already. We get paid electronically, we pay bills online, we use credit cards. In fact, we barely touch paper money at all anymore.

But those aren’t the real reasons the Fed is so fired up about a new digital currency…

Out of Control!

Here’s the real reason:

The Fed has lost control!

It all started with cryptos, because cryptos don’t depend on banks.

But then China gave us a slap — and that’s when things started to heat up.

You see, a lot of America’s power relies on the U.S. dollar being the reserve currency for the world. China doesn’t like that. It would LOVE to destabilize the U.S. dollar.

That’s why, a few years ago, it launched a digital currency: the e-CNY, or the digital yuan.

And ever since, it’s been trying to challenge the U.S. dollar.

This is what’s forcing the Fed to take initiative now.

So what happens next?

Your Privacy is at Stake

Well, for a digital dollar to be launched, the Fed says it needs to have four characteristics:

  • Privacy protection.
  • Intermediation.
  • Transferability.
  • Identity verification.

Some of these characteristics are meant to throw traditional banks a bone. To keep them relevant.

Take privacy protection, for example. A digital dollar would enable the Fed to track your every transaction. Oh, but don’t worry, folks: it’s already said, “Hey, don’t worry, we’ll respect your privacy.”

That’s BS! In truth, it would simply have the banks do the monitoring. After all, they already monitor big transactions anyway.

Obviously, this aspect is extremely concerning.

But for investors, there’s a bigger point here…

The End to Banks?

A shift to a digital dollar would cause major disruption to the existing financial industry.

Think about it: if people lose their financial privacy, they’ll be more likely to turn to crypto.

But more importantly, if everything becomes digital, you’ll no longer need to go into a bank.

So why have banks at all?

Bottom line: banks might become an endangered species.

And with that in mind, I’d advise two things…

Here’s a Plan of Attack for Investors

First, look at your portfolio…

Do you hold any bank stocks? If so, it might be time to think twice.

Second, look at some of the leading companies in fintech — for example, look at companies like Venmo/PayPal (Nasdaq: PYPL), Square (NYSE: SQ), and Mastercard (NYSE: MA).

Each of them has been boxed-out of the traditional banking game of taking deposits.

But with a digital dollar, now they could custody your assets. They could become major players.

If you’re a “Pro” subscriber, I’ve got a big specific idea on how to play this potential upcoming shift. Check it out!

In the meantime, Zatlin out. Talk to you soon.

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In it to win it,
Andrew Zatlin
Andrew Zatlin
Moneyball Economics