In the last few decades, there has been a global shift towards a “cashless world,” a trend that continues to shape financial autonomy. Physical currency is becoming increasingly rare as the majority of the world’s money supply exists in electronic form. Governments and financial institutions are actively promoting a cashless society, raising concerns about individual financial freedom.

Central Bank Digital Currency (CBDC) is the digital form of a country's fiat currency, which is regulated by its central bank. Though the idea for central bank digital currencies stems from cryptocurrencies and blockchain technology, CBDCs aren't cryptocurrencies. A central bank controls a CBDC, whereas cryptocurrencies are almost always decentralized, meaning they can't be regulated by a single authority, such as a bank.

The concept of Central Bank Digital Currencies (CBDC) in the last year has gained substantial prominence globally. IMF Director Kistalina Georgieva noted in her speech last year that CBDCs have already been introduced in The Bahamas, Jamaica, and Nigeria. More than 100 countries (including the United Kingdom, United States and Ghana) are in the exploration stage. Central bankers in Brazil, China, the euro area, India, and the United Kingdom are at the forefront.

The push towards a cashless society is often justified on grounds of enhanced security, with claims that electronic transactions deter terrorism, money laundering, and counterfeiting. However, upon closer examination, it becomes apparent that the primary objective is an attempt to ‘bar the doors’ and keep assets within a country's Financial System. Reduced reliance on physical cash facilitates increased monitoring and taxation of financial transactions, aligning with the government’s and central planners’ interests.

Governments benefit from a cashless system as it allows for more efficient taxation and central planning, while banks see advantages in increased fees and regulatory power. A cashless society results in larger bank deposits, contributing to an expansion of the money supply through fractional reserve banking.

Contrary to paper currency, the intrinsic value of precious metals, particularly gold and silver, has hardly been impacted by these government decisions.





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