The Federal Reserve Bank of New York has been aiming and working towards implementing its own type of cryptocurrency as we know it, to replace the fiat/paper dollar. After dawdling for the past few years on the idea, the idea for ‘Fedcoin’ to finally replace the digital dollar has now been revealed.
The “Fedcoin” will also be based on Blockchain technology.
With the dollar bill, we could walk into a coffee shop and ‘purchase’ a cup of coffee anonymously, since our identity is not attached to the dollar bill, Fedcoin comfortably betrays this idea as opposed to other cryptocurrencies like Bitcoin.
Decentralization was at the heart of cryptocurrencies like Bitcoin, but with the Fedcoin, you’ve got eyes on your back. To fully understand this, we need to understand how Blockchain technology works.
The way Blockchain technology works, transactions are meant to be anonymous, save for the username and Unique ID available to the public.
Projects like Bitcoin are open source, permissionless, borderless, censor less and beyond the control of a private body. They put the existence of banks into question and suggest a world of self financial-governance.
Whenever a transaction is made using Bitcoin, the transaction information is encoded In a complex technology into blocks. Once a block reaches a certain number of approved transactions, a new block is formed. This block is then added to the chain of blocks already created by other transactions, hence the name Blockchain.
The Blockchain updates itself every 10 minutes automatically. These transactions are not monitored by a 3rd party or controlled by Bodies. Although, the information encoded in a block can be downloaded and checked, but given the long chain of blocks, it is difficult to identify the block that contains the transaction, and even if found, the username and the person involved in a transaction is still specific to them plus their unique ID.
The idea behind Fedcoin could be thought of as pretty much the same thing at face value but actually, The Blockchain technology behind Fedcoin idea is most likely not going to be used this way.
Dozen of central banks globally are also doing such work, including China’. According to one blogger –
“A Federal Reserve created digital coin would put in the hands of the government the potential to create a digital currency with the ability to track all transactions in an economy—and prohibit transactions for any reason. In terms of future individual freedom, this would be at best pretty diabolical.”
The democrats originally asked for this digital currency to be included in the coronavirus stimulus bill. Here we see they have put forth legislation to create the Digital Dollar. This is all part of 5G so there can be instant payments that are required when it comes to eliminating paper money. This is the goal to ensure people pay taxes and to eliminate the underground economy. Anyone without a Social Security number will be prohibited from working. Interestingly, the illegal immigrants they defend so much work for cash under the table. But what the heck. They will get 110% of the taxes from the rest of the people that they think do not pay their fair share. Look at section 5 here all residents and citizens get a digital dollar wallet. Yay. And ni section 5d it is to be FDIC compliant meaning bank deposits up to a value of a quarter of a million dollars are insured. How wonderful.
So how will it work? The Federal Reserve would deposit fed coin currency into your digital cryptocurrency wallet for you to spend. According to some analysts, every time a digital dollar is spent a paper dollar is removed from circulation.
So what should you do?
– Earn more (if possible)
– Invest more
– Save better
– Cut your expenses
– Buy precious metals, income generating equities and yes bitcoin
– Keep educating yourself and growing
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Wishing you every success 🙂
