Increasingly, since COVID-19, we’ve been actively discouraged from using physical cash. Bank branches have been closing, going digital only, and ATM’s have been removed. We are being forced to use digital methods to buy and sell goods and services whether we like it or not.
If the Communications Legislation Amendment (Combatting Misinformation and Disinformation) Bill 2024 (MAD Bill) gets in your voice will be silenced. Anything that the government deems to be mis or disinformation could end up with your bank account being closed, denying you access to your own money. We’ve seen it with the Canadian truckers who’ve had their accounts frozen because they spoke out about COVID-19. Why? Because it didn’t fit the government narrative and the government was following the WHO pandemic plan.
But what about cash and Central Bank Digital Currency (CBDC)?
CBDC is a Central Bank Digital Currency which is a digital equivalent of bank notes and coins. According to McKinsey & Company, CBDCs are digital currencies issued by central banks and are not tied to a physical commodity. Their value is linked to the issuing country’s official currency. At present, 87 countries—representing more than 90 percent of global GDP—are exploring CBDCs.
CBDC’s will allow the government to regulate the economy and your spending. Some people, say they have nothing to hide so why should we care? CBDC’s, as much as they are about convenience, they also come at the cost of surveillance and restrictions.
If the MAD Bill is passed, then it’s possible that the government may take further steps and direct the banks to close your bank accounts and restrict your access based on your social media posts. If not, your social media posts, then with the introduction of CBDC’s and the surveillance and tracking which comes with it, they could cut off access to your money if they don’t like your spending habits.
Concerns about CBDC’s:
So, keep cash alive and use it for your purchases as often as possible.
The Reserve Bank of Australia (RBA) is researching CBDC’s to use as a complement to existing forms of money. They have already run a number of pilot projects with Australian and international banks and other agencies.
In September 2024, the RBA’s Assistant Governor (Financial System) spoke about the future of CBDC in Australia at Intersekt 2024.
Here’s some takeaways from his speech:
“Fast forward to today, rapid innovation in technology and structural change in the financial economy is again raising important questions about whether our monetary arrangements are fit for purpose – this time in the digital age.”
“I can confirm that the RBA is making a strategic commitment to prioritise its work agenda on wholesale digital money and infrastructure – including wholesale CBDC – rather than retail CBDC.”
“Second, we are publicly committing to a three-year applied research program on the future of digital money in Australia.”
“Third, the view of the RBA and Treasury is that if a public policy case ever emerged in favour of issuing a retail CBDC, the Australian Government would be the ultimate decision authority and it would almost certainly require legislative change. This would also be in keeping with the recent international experience.”
According to the Atlantic Council, as at 26 September 2024, 138 central banks representing 98 percent of global GDP are exploring a CBDC. 134 countries and currency unions, representing 98% of global GDP, are exploring a CBDC. In May 2020 that number was only 35. Currently, 66 countries are in the advanced phase of exploration—development, pilot, or launch.
Every G20 country is exploring a CBDC, with 19 of them in the advanced stages of CBDC exploration. Of those, 13 countries are already in the pilot stage. This includes Brazil, Japan, India, Australia, Russia, and Turkey.
The leaders at the end of 2023 were: the Euro Area, the UK, Sweden, Singapore, China and several developing countries. The United States remains conspicuous by its absence. The US Atlantic Council also has a tracker on countries who have established CBDC’s.
The UN, WEF and the G20 are all pushing the digital economy.
UN
WEF
G20
Overseas examples