Drumbeats for the cashless society

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We're not Denmark.

We're not a small nation; we're not a homogenous society; we're not - anymore - inherently moral or disciplined in the way the Danes and Norwegians are (or have been).

We have government OBSESSED with personal power, and with USING that power to control those they deem as their lessers.

And CBDCs give them just that opportunity.
 

The cashless future is here. So is Big Brother.​

Daniel de Visé
Thu, January 5, 2023 at 6:00 AM EST · 7 min read
  • Two-fifths of Americans used no cash in 2022.
  • Paper currency and coins have downsides: they are unsanitary, inconvenient, costly to handle and easy to steal.
  • Credit and debit cards leave a valuable digital trace but that also means they are easy to track.

Full article:
 
 
You suppose the next Fauci-Treasury project, will be a way to infuse paper fiat with coronaviruses? Something really kewel, like AIDS or leprosy?
 
Major US banks, including Wells Fargo, Bank of America, JPMorgan, and others, will push into the digital wallet space in the second half of this year to take on Apple Pay and PayPal.

Early Warning Services LLC (EWS), the bank-owned company that operates the money-transfer service Zelle, will be managing the new digital wallet, according to WSJ. The wallet has yet to be named but will be separate from Zelle and allow shoppers to pay at merchants' online checkouts with linked debit and credit cards.

EWS plans to offer the new digital wallet later this year and can handle up to 150 million debit and credit cards during the initial launch. Consumers in good standing with banks will be eligible for the new service.

The purpose of the digital wallet is to take on third-party wallet operators such as Apple and PayPal, according to people familiar with the matter. They said banks are concerned about losing businesses if a digital wallet is not released soon. ...

 
Reuters said:
...
The FBS (Free Switzerland Movement) says cash is playing a shrinking role in many economies, as electronic payments become the default for transactions in increasingly digitised societies, making it easier for the state to monitor its citizens' actions.

It wants a clause added to Switzerland's currency law, which governs how the central bank and government manage the money supply, stipulating that a "sufficient quantity" of banknotes or coins must always remain in circulation.

There is no evidence of moves towards a cashless society by Swiss authorities.

FBS said it had garnered over 111,000 signatures in support of the measure, above the 100,000 needed to trigger a popular vote. Under Switzerland's system of direct democracy, the proposal would become law if approved by voters, though government and parliament would decide how that law was implemented.
...

Not sure of the practical effect of such a law, but at least the process will make folks think about the situation.
 
The U.K. government said Monday that a digital currency is likely needed, as countries around the world examine the changing nature of payments.

A statement issued by both the U.K. Treasury and the Bank of England said they were seeking comments, though they said no decision has yet to be taken. The consultation will run through early June, and a decision about whether to implement a digital pound will be taken around the middle of the decade. The earliest stage at which the digital pound could be launched would be the second half of the decade.
...

 

Why The Big Banks Created Zelle​

CNBC
Feb 4, 2023


12:03

Competition among peer-to-peer payment apps like Venmo, PayPal, Cash App and Zelle have been heating up for the past 10 years. The big banks tried to compete in the space when PayPal first came on the scene 25 years ago, but their business models failed. Now, Zelle, a seven-bank platform, is outpacing its rivals in average transaction value. But a rise in reported fraud activity recently got the attention of Congress, with allegations that the banks aren’t supporting those affected customers.

Watch the video above to learn more about why the banks created Zelle and whether the app can hold its own against the the battle to win in the peer-to-peer payment space.

Chapters:
0:00 — Introduction
01:27 — Business model
02:47 – The rise of P2P apps
05:45 — Fraud allegations
10:07 — Fierce competition
 
Long but interesting.

Introduction​

Every day, people around the world make more than 2 billion digital payments.1 They pay for goods and services, borrow and save and engage in a multitude of financial transactions. Every time they do so, they rely on the monetary system – the set of institutions and arrangements that surround and support monetary exchange.

At the heart of the monetary system stands the central bank. As the central bank issues money and maintains its core functions, trust in the monetary system is ultimately grounded in trust in the central bank. However, the central bank does not operate in isolation. Commercial banks and other private payment service providers (PSPs) execute the vast majority of payments and offer customer-facing services. This division of roles promotes competition and gives full play to the ingenuity and creativity of the private sector in serving customers. Indeed, private sector innovation benefits society precisely because it is built on the strong foundations of the central bank.

 
An update on the Swiss referendum:
Swiss citizens are likely to vote in a future referendum on whether to enshrine the availability of cash in the constitution.
...
The campaigners for the ballot, a group called the Swiss Freedom Movement, said this week that they had collected 157,422 signatures in support of such a vote.
...
If 100,000 signatures are certified, government and parliament can comment on the proposed change. A referendum would then be held in two to three years.

 
Representative Tom Emmer (R‑MN) has introduced a new bill to prohibit the Federal Reserve from issuing a retail central bank digital currency (CBDC).

For those that may not remember, Representative Emmer was the first member of Congress to push back at CBDCs through legislation when he introduced a similar bill in January of 2022. That bill prohibited the Federal Reserve from issuing a retail CBDC by barring it from issuing “a central bank digital currency directly to an individual.” It also explicitly forbids the Fed from offering “products or services directly to an individual,” and from maintaining “an account on behalf of an individual.”

The updated version provides additional protections designed to prevent the Federal Reserve from issuing a retail CBDC. Specifically, the newer version prohibits both the Board of Governors and the Federal Open Market Committee from using “any central bank digital currency to implement monetary policy.’’ Finally, the bill prohibits the Federal Reserve from conducting CBDC pilot programs without informing Congress.
...

 
This one's a bit different. Older gent living in his own cashless society. Actually he's not alone. There's a whole lotta us living the exact same way.
Really can't recall the last time I really used cash.

‘I don’t use cash’: I’m 70 and my home is paid off. I live off Social Security, and I use a credit card for all my spending. Is that risky?​


I am now 70 years old and partially disabled. I am fully retired, living on Social Security and Supplemental Security Income. Obviously, I have limited income.

I am financially stable. I have no debts of any kind. I own my home (a boat) free and clear, and have no payments on my automobile.

I have always been reluctant to pay for things using a debit card. My worry is that if my debit card ever gets stolen and there are fraudulent charges, that money comes directly out of my checking account. Even if I reported its theft, it might take time to get the money back.

As a result, I don’t use cash. I always pay with a credit card rather than a debit card. I don’t carry any credit-card balances. I budget my money carefully and pay all my credit-card bills in full every month.

More:

 
On the heels of the BIS blessing, SWIFT says...

A project run by interbank messaging company SWIFT to interconnect central bank digital currencies (CBDCs) offers “clear potential and value,” the company said in a statement on Thursday.

The project, which included banks such as BNP Paribas (BNP), Intesa San Paolo (ISP) and Standard Chartered (STAN), as well as French and Singaporean central banks, will now move on to a second phase which could look at further applications like trade finance and securities settlement.
...
SWIFT said it will move on to beta testing in the coming months, and also start a second phase looking at applications such as conditional payments.
...

 
Reading through some posts on a merchant mariner forum I came across this:

" A Norwegian friend of mine living in Norway is receiving MMA pension checks from the time he worked on Alaska tug boats many many years ago. The monthly checks are sent to him in Norway but Norwegian banks no longer accept checks therefore he cannot cash the checks in Norway."

So I dug around a bit:



 
... a new Cato Policy Analysis on central bank digital currencies, or CBDCs. The report begins by dispelling some of the myths about the benefits of CBDCs. The report makes the case that a CBDC would not be a solution for financial inclusion, faster payments, better monetary policy, or preserving the dollar’s international status. Yet the problem with CBDCs isn’t just a problem of empty promises. Therefore, the report then turns to the risks posed by CBDCs and how they could mark a radical departure from the current financial system.

Ultimately, we make the case that Congress should prohibit both the Federal Reserve and the Department of the Treasury from issuing a CBDC.
...


Link to analysis:

 
"Ultimately, we make the case that Congress should prohibit both the Federal Reserve and the Department of the Treasury from issuing a CBDC."

Well of course they should. It'd be the only right thing for 'em to do.
.....but when's the last time they did anything to actually uphold the Rights of the People, at the expense of more gov power and control?

All I see 'em doing is stuff that whittles away at the People' Rights and $.
 
A digital euro will offer choice in making payments and is not a "Big Brother" project that seeks to control people, the European Union's financial services commissioner Mairead McGuinness said on Wednesday.
...


read-my-lips-no-new-taxes.gif
 
Tax Day falls on Tuesday, April 18, this year. And for those who haven’t filed yet and end up owing money to the government, have you considered paying in cash?

It may not be the first option many people would choose, but it is possible, if not challenging.

Jay Zagorsky, a professor at Boston University’s Questrom School of Business, did just that this year. He joined “Marketplace’s” Kai Ryssdal to talk about the obstacles he encountered in paying the IRS in physical currency and the reasons we might want cash to be a more accessible option. An edited transcript of their conversation is below.

Kai Ryssdal: You wanted to pay your taxes in cash. My question, sir, is why?

Jay Zagorsky: Why? Well, first, Kai, I teach students about money. And I always ask them to look at the front of their bills. And on the front of the bills, it states: This note is legal tender for all debts, public and private. And income tax is one of our biggest public debts. And for years, I was wondering: Was it even possible to pay in cash? Because I’ve never heard of anyone who had paid in cash. And a couple of years ago, one of my students said, “Professor, I actually found it on the IRS website.”

Ryssdal: Sorry, like instructions for how to pay in cash?

Zagorsky: Instructions on the IRS website for how to pay in cash.

Ryssdal: So you cannot simply walk into the local IRS office and hand them, you know, $452.97 and be done with it?

Zagorsky: No. As a matter of fact, first, you have to make an appointment. And the lady I talked to said that I was very lucky that there were some appointments in my local office here in Boston available before Tax Day and that many of our other offices were booked all the way up to May. So if I had waited a little bit longer, I couldn’t pay in some other parts of the country in cash. After I made an appointment, I went down to the federal building — took a little while to get in because it’s pretty high security at the federal building. And then I sat there, and after about 30 minutes, they came up and they apologized. And they said, “We cannot keep cash in this facility because it’s not safe,” which I found a little bit ironic given how much effort it took to actually get into the federal building. And they said they needed to schedule a courier. I showed up a week later, and it took about 30 minutes for them to accept my cash. And they filled in what appeared to be a four-part carbon form, so the IRS has not yet automated this part of their business. And let me say, Kai, I was not trying to be a pain in any way, shape or form. There are stories on the internet of people bringing wheelbarrows full of coins. I went to the bank, I got crisp $100 bills, exact change. I wanted to make the experience go as fast as possible.
...


Edit: Found another report on this story with additional details/comments:

 
Last edited:
Detroit City Council Member Angela Whitfield-Calloway hasn't been back to the downtown Plum Market since October, when she learned she couldn't buy a salad she had prepared with the $20 bill she brought for that purpose. The store takes payments by card, phone and even watch — but it doesn't accept cash.

Now, Whitfield-Calloway is championing an ordinance that would ensure no one has to experience the embarrassment and frustration she did when trying to pay with legal tender. If passed, it would prohibit restaurants and stores in Detroit from going cashless.
...

 
... and about that cash grab in India...

Regarding events mentioned in post #41 (back in 2016):
India will start withdrawing its highest value currency notes from circulation, the central bank said on Friday, in a move that economists said could boost bank deposits at a time of high credit growth.

The withdrawal of 2,000-rupee ($24.5) notes ...
...
Announcing the withdrawal, the Reserve Bank of India (RBI) said evidence showed the denomination was not being commonly used for transactions.

The notes will remain legal tender, it added, but people will be asked to deposit and exchange them for smaller denominations by Sept. 30.
...
The 2,000 rupee note was introduced in 2016 after the Narendra Modi-led government abruptly withdrew 500 and 1000 rupee denominations in an effort to remove forgeries from circulation.

There is little evidence that plan succeeded, but the move did create a systemic shortage of cash by taking away 86% of the economy's currency in circulation by value overnight.

The government began issuing new 500 rupee notes days later, and added the 2,000 to replenish currency in circulation at a faster pace.

However, since then, the central bank has focused on printing notes of 500 rupees and below and has printed no new 2,000-rupee notes in the last four years.
...

 
The demand for bullion saw a sudden jump on Saturday, which dealers in various parts of the country said was expected to continue till people offloaded a bulk of their ₹2,000 banknotes for gold and silver, even as a rush to exchange the high-value currency notes is expected at banks from Monday.
...
“The sale of bullion has shot up after the withdrawal of ₹2,000 currency notes was announced,” said Vinod Maheshwari, a bullion dealer at Lucknow’s Chowk Sarrafa market. Traders were selling gold and silver at 10% higher rates to those paying with ₹2,000 notes, he said, adding that there was no significant increase in the rates of jewellery.
...

 
BERLIN, May 24 (Reuters) - A digital euro could be launched in three or four years but banknotes will be available as long as there is demand for them, Fabio Panetta, a member of the European Central Bank's Executive Board, told Les Echos.

To make the digital euro interoperable with other central bank digital currencies, the ECB was working closely with the central banks of the U.S., Britain, Switzerland, Canada, Japan and Sweden.

 
...
To make the digital euro interoperable with other central bank digital currencies, the ECB was working closely with the central banks of the U.S., ...

But the Fed has repeatedly said they are not making a CBDC....
 

BIS To Use AI To Monitor Global Bank Transactions For "Money Laundering"​

SATURDAY, JUN 03, 2023 - 08:45 AM

While the IMF is currently gearing up to introduce its new global CBDC system called the UMU (also known as the Unicoin), The Bank for International Settlements has been busy with multiple projects designed to centralize all international banks and central banks into a single umbrella network that allows for quick cross-border transactions using digital currencies. In other words, a cashless society.

One such concept, called Project Icebreaker, dealt specifically with creating a SWIFT-like bottleneck system which would allow global banks to regulate and eventually homogenize all currencies into a single one world exchange model that would give them the power to cut out any nation or company that does not meet their ideological approval.

The latest idea from the BIS is Project Aurora, which may be even more disturbing than Icebreaker in its implications. Aurora is designed to use "machine learning" (AI) as a tool to monitor vast flows of financial transactions from all over the world in order to identify specifically flagged patterns. The BIS says that this is meant to discover criminal money laundering structures protected by "money mules." However, in order for the AI to sift through global transactions in real time, corporate banks and governments would have to create extensive streamlined access to accounts then open the doors wide for the AI to operate with impunity.

More:

 
That is why some folks talk about decentralized crypto like Bitcoin as a solution for monetary freedom.
 

‘Trying To Survive’: Small Businesses In This Liberal City Are Refusing To Take Cash Amid ‘Brutal’ Robberies​

June 14, 2023

A growing number of small businesses in Oakland, California, are refusing to take cash in hopes that thieves will leave them alone amid a surge in robberies, the San Francisco Chronicle reported Wednesday.

While neighboring San Francisco passed an ordinance in 2019 forbidding stores from going cashless — citing the potential negative impacts on low-income citizens who may not qualify for credit cards — several Oakland businesses told the Chronicle that break-ins had stopped as a result of their decision to do so. Many of the businesses that spoke with the Chronicle are located in Oakland’s “Police Area 2,” which has seen 137 commercial burglaries so far this year, nearly triple the 52 such burglaries reported in 2021, and up slightly from the 135 reported by this time last year.

(RELATED: San Francisco DA Not Charging Security Guard Who Allegedly Shot Suspected Shoplifter, Despite Community Uproar)

More:

 

Detroit businesses that don't accept cash could be fined under new ordinance​

Detroit ― The City Council voted Tuesday to prohibit Detroit businesses from rejecting cash payments through an ordinance that includes misdemeanor penalties for establishments that don't accept dollar bills or change.

The new ordinance appears to apply to Detroit's largest sports venues, including Little Caesars Arena, Comerica Park and Ford Field, which all have vendors that only accept credit card or electronic payments. Those venues could not be immediately reached Tuesday for comment.

More:

 

‘Trying To Survive’: Small Businesses In This Liberal City Are Refusing To Take Cash Amid ‘Brutal’ Robberies​

June 14, 2023

A growing number of small businesses in Oakland, California, are refusing to take cash in hopes that thieves will leave them alone amid a surge in robberies, the San Francisco Chronicle reported Wednesday.

While neighboring San Francisco passed an ordinance in 2019 forbidding stores from going cashless — citing the potential negative impacts on low-income citizens who may not qualify for credit cards — several Oakland businesses told the Chronicle that break-ins had stopped as a result of their decision to do so. Many of the businesses that spoke with the Chronicle are located in Oakland’s “Police Area 2,” which has seen 137 commercial burglaries so far this year, nearly triple the 52 such burglaries reported in 2021, and up slightly from the 135 reported by this time last year.

(RELATED: San Francisco DA Not Charging Security Guard Who Allegedly Shot Suspected Shoplifter, Despite Community Uproar)

More:

Well, that explains the Left's sudden love of violent crime.

MAKE the merchants accept only e-payments. Soften the people up for FedCoin.

This is insanity.
 
Defunding the police will lead to economic totalitarianism.
 
Age UK has announced its support GB News’ campaign not to kill cash.

The charity, which hopes to protect elderly people, warned many elderly Britons are reliant on cash and moving towards a digitised economy could hinder them financially.
...
Age UK's endorsement comes after 185,000 people signed GB News' petition against killing cash.
...


The broadcasting watchdog Ofcom is investigating a complaint made against GB News' Don't Kill Cash campaign.

The campaign, which has more than 166,000 signatures, warns about Britain "becoming a cashless society".

It also calls on the government to introduce legislation to protect the status of cash as legal tender.

Ofcom said its guidelines require broadcasters to not express views on "matters of political and industrial controversy or current public policy."

"Our investigation does not seek to question the merits of the campaign itself," the watchdog added in a statement.

BBC News has asked GB News for a comment.
...

 

Shops can refuse to take cash even though it’s legal tender​


A post on Facebook with over 300 shares claims it’s an offence for a shop to refuse to take payment in cash, as it is legal tender.

The post says: “Refusing legal tender Cash is an offence! No shop or store can stop you buying with cash it is legal tender [sic]”.

But this is not true. It is completely legal for individual businesses, such as shops, to decline certain forms of payment, like cash, or card.

More:

 
Well, it's obviously not a true "full fact" - because it all depends on jurisdiction.

Ideally, a person's goods are his until he decides to sell them; and for what - what price, what currency or commodity. The IRS and various States' agencies and laws, think otherwise. For one, you cannot choose which PERSON to sell to. Try not renting an hotel room to an intoxicated minority, and see what happens.

Second, you cannot choose what CURRENCY to sell or do business in. If an Indian comes in with Rupees, and you don't want to sell or rent him that hotel room...that is fine, you don't have a way to deal with rupees. But if he comes in with DOLLARS...depending on where you are, you may have problems.
 
(WJW) – Is it time to put the cash away? Taco Bell and other popular fast food chains might become digital-only in the near future.

During an earnings call earlier this month, parent company Yum! Brands, Inc. addressed plans to eventually move to 100% digital sales at its restaurants.

 
That's fine.

I'll do without. I'll be healthier, and they won't have to deal with yucky cash.
 
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