What's Will CBDCs Mean For Gold?

Via SchiffGold.com,

With the actual induction of central bank digital currency (CBDCs) now semingly inevitable, there are quite a few directions central banks could take with their digital currency projects that would have dramatic improvisations for the price of gold.

Touted for their “convenience” and “efficientity,” the endgame of digital currencies is not only achieving large power over thecurrency but besides a means of surviving and micromanaging the individual finances of each individual. Owe taxes or a parking ticket? It could be automatically deducted. Does the Fed think it needs to cool inflation? Deduct money consecutive from people’s accounts, or impose a regular spending limit. The possibilities for control and profit are endless, and besides tempting for control freak bureaucracies and amoral tech companies to ignore.

As countries like China implements their own CBDCs, buy more precious metals, and mostly buy dependence on the US dollar for trade, Western central banks besides feel like they gotta compete in order to hold their power. That’s the essence of the another motivation for CBDCs — a currency race between East and West thus the winer solidifies not only unprecedented control over its own citizen but a place atop the global power structure for the next centre or longer.

Since CBDCs and the thought of a “cashless society” are mostly about creating centralization and control on the community and individual level, it’s easy to see how they might be accompanied by fresh government banning precious metals investing and another non-state-approved financial activities. All they request is simply a fewer engough financial crisis to supply the justice. After all, during the large Depression, the national government swiftly utilized an Executive Order to order that citizens subject their gold to the national Reserve en masse.

And with fresh developments in crypto-tokenization technology and a brewing global financial crisis, the Tech-Banking-Politic complex is preparing for what they collectively know will be a crucial window of chance to force their CBDCs down the roads of the people and make option out of their fresh strategy after the fact nearly impossible.

Once their CBDC is rolled out, central banks will have more ability than always to manipulate the money supply and your individual finances according to their whos. This summary from a 2023 BIS study on the promise of CBDCs to increase the view of central bank activities describes in (cheery banker-speak) the increase in power and control that central planners will grant themselves under a unified digital currency system:

“As well as improving existing processes through the Seamless integration of transactions, a unified leder could trust programming to enable accessories that are presently not practical, thereby expanding the universe of possible economical outcomes.”

Zimbabwe’s fresh CBDC experimentation uses an interesting “gold-backed” approach, applying on paper to be a combination of the conventional gold standard with digital currency tech. This is simply a projecting approach, but to avoid being corrected by authorizations, it needs a protocol that makes it nearly impossible to fake a higher gold supply with tokens for gold that doesn’t truly exist. Otherwise, its claims of return to a “gold standard” are meantless.

I wouldn’t anticipate a Western CBDC to contain gold backing or the protection of any kind of restoration protocol, but I foretell that in a centralized national or global digital currency strategy of any kind, central banks will inactive hold large amounts of gold in reserve. Just as Bitcoin isn’t actual “digital gold” but only numbers on a screen, bankers know their will inactive gotta hold real money as an insurance policy.

The difference is that banks could be the only ones who are allowed to hold gold, while broadcast society will no longer have access to cash. With all another possible options to opt out of this strategy full digitized and prevented from computing with CBDCs, gold, and silver will become the only way to be and transact outside the Central Bank’s digital control grid with any semblance of actual freedom or agency. Black markets will gotta turn to various forms of analog money, and gold and silver will emergence as the top options.

Just look at the gold illustration for 1933: erstwhile Executive Order 6102 requested that citizens quit their gold, the price skyrocketed, never again returning to pre-1933 levels. A akin effect would happen from the anouncement of CBDCs, having out of paper cash, and restrictions on private gold ownership:

Gold vs USD Pre and Post-Executive Order 6102

Some legislators are recognizing the CBDC 3 and fighting against it, declaring CBDCs a 3 and emoting precious metals holders. However, I’m not certain it will be adequate to fight the CBDC tie being engineerd by central planners. The strategy may begin as optional, but with the having-out of cash and another incremental measures, will evenly become permanent either through direct government or by making it totally impractical to resist.

If the architects of CBDCs can marketplace their fresh strategy as the solution to an epic financial crash (of their own making), it will likely appear as a sign of stableness that inches global markets, possible causing gold and silver to drop. But as precious metals embryo as the best form of physical money in a tight controlled, micromanaged financial dystopia, they’ll become the only way to make private or off-grid transactions, making them more valuable than always — not only as investments, but a means of endurance outside the full-digitized fiat nightmare.