CBDCs = TOFO (Tools of Financial Oppression)

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more. You can visit the forum page to see the list of forum nodes (categories/rooms) for topics.

Why not register an account and join the discussions? When you register an account and log in, you may enjoy additional benefits including no Google ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!


Chatter about CBDCs has grown in the last few years. Central banks around the world are engaged in various projects to design, test and integrate CBDCs for future replacements of their national paper/coin currencies. In the absence of any compelling justifications, pundits proclaim CBDCs as a solution in search of a problem. However, CBDCs are being developed for important reasons. Central banks just can't openly tell the public about it. If the public really understood the issue, they would rebel. And they should rebel.

Central banks are looking to CBDCs to effect a new world order with a medium that is a bastardization of money. The USA shot their wad with the weaponization of the SWIFT system in effecting economic sanctions against Russia and Iran. The BRICS are rebelling and dollar hegemony hangs in the balance. As the SWIFT system loses it's stranglehold on global payment clearing, the BIS, IMF and others are busy developing a global CBDC framework for a new world order. This will usher in an unprecedented era of financial surveillance and control.

CBDCs are not the same thing as "crypto"​

When Bitcoin was born, very few people took it seriously. But it's novel invention has sparked a revolution of growth in the development of cryptocurrency technologies. Bitcoin was designed to be strong on decentralization, but it's energy per transaction is not efficient/scalable. The blockchain technology does allow for transaction surveillance, but wallet ownership can be anonymous. Wallet interactions with know-your-customer (KYC) on-ramps and off-ramps can expose wallets and transaction histories to financial surveillance.

Lots of smart people have grappled with Bitcoin's shortcomings and that has led to the development of new blockchain technologies and advancements including various consensus algorithms (proof of stake, proof of agreement, etc.), smart contracts, block chain data storage (commonly used for NFTs, but has other uses too), sharding, zero knowledge proofs, parallel chains, etc.

The crypto space is evolving with tremendous speed. Where the big knock on Bitcoin (with respect to it's potential as a global currency) as always been it's inefficiencies with both energy and transaction commitment times, newer technologies have closed the gap and in some cases exceeded the cost and speed of legacy financial digital systems (SWIFT, ACH, CC, etc.).

Most central banks publish press releases and papers on their CBDC projects. They are working hard to develop systems that do the same thing that existing crypto systems are doing. The big difference though is that CBDC systems are closed systems (wallet creation is tightly controlled) designed for centralized control whereas cryptos are open systems (wallet creation is free and available to anyone) designed for decentralized control (with democratic systems for governance of network development and management).

Centralized control means that the central bank controls the creation and ownership of wallets. For wholesale CBDCs (aka wCBDC), this means the central bank controls the dissemination of wallets to participating banks. For retail CBDCs (aka rCBDC), they control the dissemination of wallets to the general public. That's a huge task and in order to do it, governments are preparing to roll out digital IDs that will be integrated with CBDC wallets.

In addition to the opportunity for total financial surveillance, CBDCs can be smart technologies. They can be programmed to reject transactions with specific wallets. The central bank can shut off access to anyone, anywhere, any time. That's total financial control. If you think operation choke point or algorithmic debanking are odious today, just imagine how central bank owned AI systems in the future will decide if you are allowed to buy a loaf of bread. Better keep your social credit in the green comrade!

The War Machine​

There are several ongoing developments working towards a convergence for CBDC implementation:
  • Central bank CBDC development - The BIS and IMF are leading the efforts for a global blueprint
  • Digital IDs - Governments all over the world are working on various projects in this space.
  • War on Crypto - Governments are trying to neuter decentralized crypto adoption and use. They do not want competition.
  • War on cash - From limiting access to cash (branch banking, ATM withdrawal limits), to pandemic propaganda (cash spreading disease) to algorithmic debanking, the war on cash has largely been waged quietly.

A common denominator in the war on crypto and the war on cash is the cry and focus on anti-money laundering efforts. Money laundering - whether supporting drug cartels or terrorists - is the rallying cry used to justify attacks on financial privacy. It's the fulcrum over which the balance of financial privacy/liberty and surveillance/control are being decided/justified.

The advent of decentralized crypto has opened Pandora's Box. Central banks (and governments) have glimpsed their Holy Grail. Absent an awakening amongst the people of this Earth, the world will continue marching towards a future without real money - money without counterparty entanglements.

Defend the money, defend the future​

There are a few things everyone can do to prevent a dystopian CBDC future:
  • Educate others - family, friends, social media strangers. Raise awareness of the issue (share this article if you like).
  • Use cash - It's tempting to use a credit/debit card all the time. But metrics on the (declining) use of cash are used to shore up political support for legislation banning the use of cash. Use cash. Enjoy financial privacy while it's still available.
  • Contact your representatives. Many States are currently considering legislation to ban CBDCs or promote gold/silver and crypto. Nationally, there is also the No CBDC Act. Let your representatives know that you support these bills (and oppose digital IDs).
Last edited:
Emmer's Anti-CBDC bill did pass. My post above was showing the vote. No idea if it will pass the Senate or if POTUS will sign it.

POTUS did back down from his veto threat on the recent crypto bill showdown, so it seems like there is some recognition in the swamp that this is actually an important issue to voters.
Nothing really new to anyone that has been paying attention, but nice to see it getting more attention:

4 June 2024

The Bank for International Settlements (BIS) is launching Project Rialto to explore how instant cross-border payments could be improved using a modular foreign exchange (FX) component combined with settlement in wholesale central bank digital currencies (wCBDC).

Improving cross-border payments is an explicit international policy goal and a priority of the G20. FX is a key component of cross-border payments but currently, the FX services facilitated by correspondent banks can be costly, slow and complex, and they expose participants in the payments chain to liquidity, credit, and settlement risks.

Decentralised solutions, CBDC and interlinked payment infrastructures are considered promising avenues to improve cross-border payments. How they interact has not yet been explored and could yield answers that advance cross-border payments globally.

Project Rialto is a collaboration of the BIS Innovation Hub Eurosystem and Singapore Centres in partnership with several central banks. It explores a new automatic FX settlement layer solution using wCBDC as a safe settlement asset that could be deployed for interlinked instant payment systems or digital asset systems.

Ripple (developer of XRP crypto token) wants to be a cog in the CBDC machine:
With more than 90% of countries exploring, developing and implementing Central Bank Digital Currencies (CBDCs) as a way to increase financial inclusion and lower the cost and risk of domestic and cross-border payment processes, today Ripple is announcing the Ripple CBDC Platform, a frictionless end-to-end solution for central banks, governments, and financial institutions to issue their own central bank digital currency. Leveraging the power of the same blockchain technology used on the XRP Ledger (XRPL), the enhanced platform will now allow its users to holistically manage and customize the entire life cycle of fiat-based central bank digital currency, transaction and distribution.

I don't think the BIS or major central banks are very interested in their solutions though. It looks like they are busy building their own (proprietary) systems.
Mario talks about CBDCs in this one.

CBDC Will Fail as It's an Effort to Perpetuate a Rotten System​

Jun 12, 2024 #money #bank #currency


What Has Government Done to Our Money?​

An echo of what I've been saying:
The world is on the brink of a financial reset, with the global elite planning to come out on top, according to Carol Roth, New York Times bestselling author of 'You Will Own Nothing,' ...
Crypto vs. CBDCs

Roth warned that some within the government are manipulating interest in digital currencies and digital assets to mainstream CBDCs and intentionally trying to conflate CBDCs with cryptocurrencies. For more information, watch the video above.

Roth stresses that truly decentralized digital currencies like Bitcoin are the antithesis of CBDCs. "A central bank currency is the exact opposite in terms of purpose and focus and what it stands for than a cryptocurrency where you have something like Bitcoin, which is entirely decentralized," she said.

Roth added that one of the drivers behind the surge in cryptocurrencies, especially Bitcoin, is the growing interest in the decentralized nature of these types of digital currencies.

"That's really what that's about. It's about preserving wealth. It's about having control and freedom," she said. "Every government is exploring a CBDC in some way. [Even] the Fed is running pilot programs and doing research," she noted.

Roth points to gold, silver, Bitcoin, and any other physical metals as hedges against the risks posed by a potential CBDC.

Bold emphasis is mine:
A court in China has sentenced members of a “gang” to prison and the payment of fines for money laundering using the yuan central bank digital currency, according to the local press.

The People’s Procuratorate of Yuecheng District, Shaoxing City, Zhejiang Province sentenced three people to prison terms ranging from seven to 16 months for money laundering activities. The date of the trial was not given.

The gang members were identified only by their family names. They laundered 200,000 Chinese yuan ($27,580) in digital form over four days in mid-September in Shaoxing, the Chinese business website Mpaypass reported. A fourth person was arrested, but their fate was not specified.
... Public security organizations received a report of abnormal digital yuan flows among merchants and quickly apprehended the gang members.

The digital yuan offers “controllable anonymity,” as is necessary for crime prevention, according to current and former People’s Bank of China officials. That phrase was used in the press report as well.

"Controllable anonymity" - lol. Orwell would be proud.
If interested, you can click onto the "cato.org" link in the post above and listen to a short podcast about CBDCs and the book.

Edit to add: Worth a listen imo.
Last edited:
IMF article:

Almost two-thirds of countries in the Middle East and Central Asia are exploring adopting a central bank digital currency as a way to promote financial inclusion and improve the efficiency of cross-border payments.

Adopting a CBDC, however, requires careful consideration. Countries across these regions, spanning a diverse group of economies stretching from Morocco and Egypt to Pakistan and Kazakhstan, each must weigh their own unique set of circumstances.

Many of the 19 countries currently exploring a CBDC are at the research stage. Bahrain, Georgia, Saudi Arabia, and the United Arab Emirates have moved to the more advanced “proof-of-concept” stage. Kazakhstan is the most advanced after two pilot programs for the digital tenge.

The design of the digital euro includes an offline functionality that would offer users a cash-like level of privacy for payments in physical shops and between individuals. ...

I doubt it. They talk a lot about anti money laundering measures without explanation. They necessarily entail surveillance measures. There won't be financial privacy with a CBDC.

Bahamas to regulate banks to offer cbank digital currency​

  • Bahamas launched world's first digital fiat currency in 2020
  • Central Bank preparing to force banks to provide access to it
  • Regulations expected to be in place within two years
LONDON, July 1 (Reuters) - The Bahamas, the first country in the world to issue a central bank digital currency (CBDC), is now preparing regulations that will require commercial banks to provide access to the e-money in a bid to stimulate adoption, its central bank governor told Reuters.

The Bahamas' role as a CBDC pioneer - it issued its "Sand Dollar" digital currency in 2020 - means that what it does in the Caribbean is closely watched by the more than 130 countries, from Europe to China, that are now exploring digital versions of their currencies.



Bahamas to regulate banks to offer cbank digital currency​

  • Bahamas launched world's first digital fiat currency in 2020
  • Central Bank preparing to force banks to provide access to it
  • Regulations expected to be in place within two years
LONDON, July 1 (Reuters) - The Bahamas, the first country in the world to issue a central bank digital currency (CBDC), is now preparing regulations that will require commercial banks to provide access to the e-money in a bid to stimulate adoption, its central bank governor told Reuters.

The Bahamas' role as a CBDC pioneer - it issued its "Sand Dollar" digital currency in 2020 - means that what it does in the Caribbean is closely watched by the more than 130 countries, from Europe to China, that are now exploring digital versions of their currencies.


Davos beta-test.
Beta test in a tax haven...
Beta test in a tax haven...
That would be the best place...see how much they can learn, about whatever test-subject they focus on.

Also try various algo restrictions. Maybe, too, they can study the hominid reaction once the money suddenly doesn't work.

The autistic midwit Elites might learn something. Especially about how the masses don't much appreciate being controlled by machines.

Exclusive: Bank of Israel waiting for digital euro ahead of digital shekel launch​

  • BOI committed to digital shekel plans
  • Israel's central bank unlikely to launch ahead of ECB
  • Deputy governor says BOI carrying out behavioural study
  • BOI trying to gauge if public would accept digital shekel
JERUSALEM, July 10 (Reuters) - The Bank of Israel (BOI) remains committed to plans for a digital shekel currency to improve Israel's payments system and foster innovation, but is unlikely to launch one ahead of other advanced economies.

"We’re all waiting for the first western central bank to pull the trigger, which is almost certainly going to be the ECB. And then you may see a rush of countries going forward with it," Bank of Israel Deputy Governor Andrew Abir told Reuters.



More about digital ID wallets:

Top Bottom