Can You Trust Central Bank Digital Currencies?
by Marvin Dumont
That’s a tough one to swallow.
Earlier this month, the International Monetary Fund’s (IMF) managing director floated the idea that central banks could issue their own digital currencies — known as CBDCs — in the near future, as countries become cashless societies. In many ways, we’re already mostly a cashless society as more than 95% of monies in developed nations are electronic in nature, such as digital deposits in checking and savings accounts.
But let’s be clear: That’s not the root cause of the problem, and the IMF and others are diverting attention away from systemic risks in fiscal and monetary systems. Satoshi Nakamoto invented decentralized Bitcoin (BTC) for a reason, and other blockchain ventures (such as Apollo Foundation) are creating trustless, cryptographic money partly because of these risks.
As Apollo (APL) users know, most central banks and their host governments have devalued sovereign fiats to a point where generations of taxpayers have lost a fortune in buying power. Worse, monetary policies have been implemented by central institutions with lack of transparency and accountability.
Being a cashless society doesn’t remove tyranny or financial restrictions. Look at China, which is ranked №1 in the world in terms of adopting mobile payment. The world’s second largest economy is becoming a cashless society. Yet Beijing has stymied financial innovation by banning Bitcoin (BTC) and other cryptocurrencies, as well as, by implementing extreme capital controls.
According to an IMF report on CBDCs: “Although the technology [DLT] is evolving, it currently falls short in scalability, energy efficiency, and payment finality. DLT could be used over a closed (“permissioned”) network managed by the central bank.”
Cryptocurrencies arose as decentralized, permissionless, and trustless money precisely because central authorities for decades have failed to preserve the buying power of sovereign fiats. Peer-to-peer cryptos allow the marketplace to decide which digital coins gain adoption and value based on utility, risk and other factors. You could say that CBDCs, just like sovereign fiats, is a bad product that’s being repackaged into an electronic format.
Apollo Foundation believes in the power of distributed and trustless money. Apollo also gives you complete privacy.
There’s much value to having an unregulatable and untraceable cryptocurrency. APL lets you pay, trade and invest in total anonymity, if you choose to. Moreover, Apollo will be an all-in-one cryptocurrency and it will feature 0% inflation.
Be on the lookout for laws or rules that force you to pay or get paid in centralized currencies. Legal tender laws forced generations of people to transact in paper fiats, and look what happened.
Apollo and other blockchain-powered currencies give financial control back to you.
