The global financial system is at the end of a major debt cycle, meaning that a reset is inevitable, and the planned reset is to be digital. All the major players agree on this point, due to the unprecendented degree of control over the population this would allow for. Elites know what happens to those in power during a period of extreme upheaval – they take the blame and maybe be violently punished by the governed. Naturally they wish to avoid this outcome, making the control features of digital finance extremely attractive. China already has such a system, with its social credit scores determining the extent to which citizens are permitted to participate in society, and this the system others are trying to emulate. What they can’t agree on is who should control it. Will this undermine or enhance American hegemony?
Both forms of digital currency would be fully programmable, meaning they wouldn’t be money as we have known it, but closer to glorified food stamps. What you can buy would be controlled, and both when and where you can spend it would also be programmed. This allows for geofencing of the population through the financial system, as well as full spectrum surveillance through a digital panopticon. Social credit scores would also be programmed into either version, hence the end of privacy, free speech, and freedom of association.
The plan for central bank digital currencies (CBDCs) originates with the Bank for International Settlements (BIS) based in Geneva, which plans to elevate the global financial industrial complex to a position of global control. This would weaken the American position by undermining the dollar and its exorbitant privilege due to its status as the reserve currency. The American approach, based on private stablecoins, would have the opposite effect, providing ‘permanent’ captive demand for US treasuries, lowering the interest rate on treasuries, and cementing digital dollar dominance. The technical industrial complex centred in Silicon Valley is behind this version.
Under the Genius Act, stablecoins can be issued by private businesses, but must be backed one to one with cash or US treasury bills. Trump’s family has set up their own version – World Liberty Financial – which would profit them personally for every transaction made. There is nothing in the Act to prevent this level of corruption. The intention is to bid for the retail sector globally, promising convenience, and it would be convenient, but it’s also a trap, as well as a means to force the whole planet to funds US debts. The next step is the Clarity Act which allows for tokenisation of assets on a single ledger, the idea of which is to facilitate confiscation of those assets. This would also be a feature of the CBDC version.
Europe is attempting to fight off the bid by the US to effectively buy control of its retail sector with legislation aimed at Tether in particular. Tether has relocated to El Salvador in order to escape from any form of regulation, and refuses to comply with EU legislation (MiCA). Under the European rules, Tether is classified as an electronic money token demoninated in a non-EU currency, and as such would be required to hold 30% of its reserves in an EU credit institution. In addition, an issuer reaching a certain limit would be required to cease issuance. It remains to be seen if the EU legislation will be effective in restraining private American stablecoins, or if it will fail to be respected. European citizens buying into Tether would weaken the euro and support the USD, meaning Europe could lose its monetary sovereignty over time. This is why the battle will be fierce. The digital euro is all about owning the rails of tokenised finance before the American stablecoins can become dominant. The US is losing at the institutional level, but winning at the retail level. Regulatory conflict continues, and may lead to a major currency war.
