The Russians are embracing cryptocurrency in a major way. They recently legalized crypto mining in the country. We are getting word that the digital ruble, a central digital currency (CBDC) will go live in 2025.
Its target date is July.
This is being done in an effort to bypass SWIFT and other actions placed on it by the West.
Moscow will attempt to use crypto for foreign settlements while creating a new electronic platform through the National Payment System (NPS) within the EPR framework.
It is just another example of how the West is shooting itself in the foot. The idea that it can control the entire financial realm is showing the arrogance. Russia is actually providing a blueprint for what will be duplicated multiple times, on many different levels.
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Russia CBDC Removing Intermediaries
SWIFT is an intermediary. It is also indicative of a legacy financial system that is going to be replaced by tokenization.
Cryptocurrency brings about the removal of financial intermediaries. We are seeing numbers levels where this is playing out. Decentralized exchanges are already starting to gain on their centralized counterparts.
As countries roll out their own coins, the need for a system such as SWIFT will diminish. This will allow countries to swap their digital currencies for each other directly, allowing for near instant settlement.
Removing Russia from SWIFT prompted these actions. “Over 30 regulators are currently working on national digital currencies,” Olga Skorobogatova, the first deputy chairwoman of the Bank of Russia, reported. “I think that this speed, with which the regulators have delved into this field, speaks volumes about the fact that, in 5-7 years, several countries surely will step forward with their own national digital currencies. Then, we can discuss the questions of direct integration. In that case, we no longer need SWIFT, since these are different technological interactions.”
Here is a quick rundown on what is taking place:
https://inleo.io/threads/view/taskmaster4450le/re-taskmaster4450le-s5supds6
While there are claims that usage is voluntary, we know how this will likely proceed.
Singular Control
We have to question what is the overall goal with these currencies?
On the surface it appears they are trying to get their foot into the game. This is certainly true to some degree. That said, we see governments, and especially those behind them, are not operating openly about their intentions.
It would seem to me the ultimate goal is to establish one singular currency. This was done in the EU with much of the power shifting to Brussels. Those people are unelected, being handed enormous amounts of power.
For the moment, the "fight" between countries can play out. This will allow of a fracturing which means the different sides will protect themselves. These moves by Russia reflect that. Naturally, China is doing much of the same thing.
Not to be left behind, the West is also toying with their own CBDCs. There are varying levels of development and planned use cases. Will this change in the future?
Another factor is taxation.
Governments, or we should say politicians, are spending themselves into oblivion. Most are aware that it is unsustainable. Of course, to the political elite, they feel that people paying more is the solution. Listen to how these people talk and the words they use. It is not their spending which is the problem. Instead, it is the people, whichever ones they target, are not paying enough.
Defaults are going to take place as a sovereign debt crisis hits. Where this starts is anyone's guess but it is also why war is evident. Historically, there is no better time to default than through war.
Technological Advancement
The challenge here, in my view, is looking at cryptocurrency as money. Here is where I think issues start to arise.
If cryptocurrency were simply money, then I could see a case being made for the path of control. However, crypto us not money. Instead, that is simply one thing it represents.
Cryptocurrency is actually data. This brings on an entirely new dimension.
Controlling data, especially on a global scale, is much different. We have seen how, over the last 40 years, technological advancements make it difficult. Whether we are dealing with open source, the darknet, or simply the volume of people, it becomes clear that stopping this cannot be done.
When it comes to cryptocurrency, we are in the early stages. This is coupled by the fact that people apply value to whatever they want.
Tokens are nothing new. We see them in many areas of computing. Does that mean governments will try to outlaw them? That is impossible since it is really a unit of measure.
Some feathers were ruffled a few years ago with the introduction of privacy coins. They have not made great strides. Will that always be the case? We do not know.
Another likely outcomes is that, at some point, we will see privacy layers built. An application such as Tornado Cash is just one idea. Others are floating around as ways to move data around anonymously.
There are many layers to this discussion. What we can presume is things are not solely playing out as we are shown. There are things behind the scenes that we are left to speculate about. It is up to us to consider them and operate in ways that can counteract it.
Posted Using InLeo Alpha
