One of the world’s most powerful bankers has laid out plans for “digital cash” by touting the form of currency as a way to “push society into new equilibriums.”
The subject of Central Bank Digital Currencies (CBDCs) has been a hot topic during the 2022 International Monetary Fund (IMF)/World Bank Group (WBG) Annual Meeting.
Governments and financial institutions are increasingly warming to the idea of introducing CBDCs.
CBDCs are digital tokens that are issued by central banks and pegged fiat currency.
The tokens would completely replace traditional physical cash and be completely controlled by state authorities in a way that was never possible before.
The move would hand unprecedented power over to authorities and would enable governments to block a person from buying food if they “spread disinformation” online, for example.
As Slay News reported, Democrat President Joe Biden’s administration has been advancing the development of CBDCs.
Earlier this year, the president signed an executive order to seize control of cryptocurrencies and lay the groundwork to turn America into a cashless society.
Under Biden’s order, the federal government will work to design a functioning, centralized cryptocurrency.
Just last month, Biden’s Federal Reserve Chair Jerome Powell announced that the government-led cryptocurrency ordered by Biden will “not be anonymous.”
CBDCs are being touted by global power elites as a means to usher in a cashless society.
As plans for a cashless society continue to advance, central bankers are now promoting the idea of combining CBDCs and digital IDs.
The idea of pairing the two technologies was being celebrated at the IMF/WBG Annual Meeting this year.
Cecilia Skingsley, head of the Innovation Hub at the Bank for International Settlements (BIS), made her case for pushing the combined technologies onto a reluctant public.
Instead, Skingsley insists that CBDCs must come together with digital IDs “in a package.”
Skingsley framed this as the need to advance “digital literacy” where locking people’s sensitive data into digital ID should come first.
The entire process of digitization, which would eventually result in a “digital society,” is not without its problems.
However, Skinsley paid lip service to it by saying that the process raises “a lot of questions about data privacy.”
But, Skingsley also said this is something that politicians should decide on.
“This is not a role for me as a central banker but having a possibility to actually choose how much digital footprints you want to leave I think is a good starting point,” the BIS Innovation Hub head said in reference to privacy concerns around digital money and other related issues.
And while that sounds like Skinsley favors allowing citizens some choice, her other statements during the panel suggest that “pushing society” in the desired direction is also a good idea.
And that kind of behavior by central authorities would be “boldness” which Skinsley compared to society having to be pushed into adopting the use of electricity, or sewage systems in the past.
“I think we need to be a little bit bold here right in the sense that we shouldn’t get in the way of the private sector, but I think sometimes in history you have to push society into new equilibriums,” said the banker.
“Predecessors did that when it came to building electricity, sewage system, and the likes.
“Hugely welfare enhancing.
“Now we want to do it again with money, and it would be good for banks as well when society takes its steps.”