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Central Banks Are Considering Digital Currencies, And That Should Worry You

Central banks, such as the bank fo England are considering introducing digital currencies along side their paper money. Whatever the stated motivation for doing so, it should worry you. Here’s why:

Digital currencies can be encrypted so that you can spend the money only on certain products. For instance, you may be allowed to use some forms of the currency to purchase foods and other similar staples.

On the face of it, that doesn’t sound too much different from food stamps (a.k.a. Supplemental Nutrition Assistance Program in the U.S.) In stead of coupons, the SNAP cards allow people to buy certain products — booze is not on the list. Many people feel such a restriction is appropriate when providing food benefits to the needy.

However, if a central bank can program a digital currency to restrict you to buying only certain food items, then it could also do far more. It could dictate which companies you buy from and which ones you can’t.

Maybe in a time of crisis the government could insist that the entire population uses only digital currency and that currency only be used to buy government-approved staples.

If this sounds a tad far fetched, then take a look at the technology being wielded by tyrannical governments to control their populations across the globe. In some cases, those governments track the every move of their people.

While central bank digital currencies are still an idea they seem a long way from tyranny. And yes, as a way to distribute benefits payments to individuals they have some uses.

But we need to be wary that our freedom-loving governments don’t go overboard and introduce something that takes away our ability to make our own choices.

For these central bank digital digital currencies to work, there will need to be safeguards in place to protect us from the potential from what might as well be called central planning.

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