I'm writing this blog on the news that the central bank of France is eyeing the cryptocurrency XRP as a possible digital Euro.
XRP or Ripple was started from funds from Google ventures and has a slew of banking veterans involved. It is somewhat the opposite of Bitcoin as it is not decentralized.
Bitcoin has no CEO, no shareholders, no one controlling it.
XRP is much like any other US corporation. There was a recent ruling from the SEC that it is too much like a security, so it should be regulated as such and now it is not available on US crypto exchanges.
Central Banks in Asia are especially hot on the pursuit of central bank cryptos. Cambodia already launched one and China, Japan, Thailand, Singapore, and South Korea are in beta testing mode.
Central banks like cryptos for many reasons. One is that they have to compete with bitcoin and the facebook crypto now. Another is that it gives them the ability to control the interest rate of a crypto as a personalized programmable function.
Imagine that a central bank wants to encourage spending. Now they can cause your money to automatically disappear (at a 20 percent per year rate for example).
China already has an advanced social credit system. If you don't follow the rules in China you get penalized automatically or cut out of the entire financial system.
Depending on your social credit score, the Chinese government can prevent you from air travel, staying at a hotel, or owning a dog.
With central bank cryptocurrency, monetary policy could be executed on an individual basis. For example if you belong to the communist party, you could have your money automatically grow. If you belong to another class, your money could disappear at a rate determined by your social credit rating.
This gets really scary when you consider that the World Economic Forum is forecasting universal basic income...where all of the people of the world (except the elite) would get paid a few thousand dollars a month and not be allowed to own private property.
It gives government complete control over the financial system and over your level of freedom.
As you can see, this universal basic income is already being rolled out (a soft rollout) in the USA with stimulus checks.
With the deep state wanting more control over our finances, it makes me want to take back control in the form of private wealth that the government can't trace such as other cryptos and silver/gold.
If the deep state gains power, they may try to outlaw the ownership of Gold and/or Bitcoin.
The US government has already outlawed the private ownership of gold in the past and some governments around the world have banned the ownership of Bitcoin.
Some wealthy individuals go so far as to hold their gold holdings in jurisdictions outside of the control of their native government.
For those who are wondering, I'm not a financial advisor but I have one...Dr. Kirk Elliott.
He has a Phd in Economics and gives free consultations. He specializes in converting a retirement account to holding physical precious metals like silver and gold.
His number is 720-605-3900 if you want to get a hold of him or if you want to make an appointment you can do so at this link: