Connect with us

Published

on

As the United States House Financial Services Committee looks to further impede the introduction of a digital dollar, where does this resistance to a CBDC stem from? 2854 Total views 31 Total shares Listen to article 0:00 Follow up Join us on social networksOn Wednesday, Sept. 20, the United States House Financial Services Committee marked up two bills to curb the issuance of a central bank digital currency (CBDC). One of the bills would stop the Federal Reserve from running any test programs on CBDCs without congressional approval, while the other would stop federal banks from using CBDCs for some services and products.

The principal political adversaries to a digital dollar are heavyweights such as Robert F. Kennedy Jr. and Florida governor Ron DeSantis, who have thrown their hats into the ring to become president a year from November.

In July, DeSantis said that CBDCs would never happen under his administration, citing concerns over consumers losing power over their own money. Kennedy, on the other hand, a known proponent of Bitcoin, is rallying against the digital dollar as it will vastly magnify the governments power to suffocate dissent by cutting off access to funds with a keystroke.

No CBDC in Florida https://t.co/p9pwSTmrlN— Ron DeSantis (@GovRonDeSantis) March 20, 2023

In May, Cointelegraph reported that according to its own research, more than 130 countries were at some stage of research into a CBDC, and only eight had rejected the idea outright. These countries are diverse, from France and Switzerland to Haiti and Bhutan. So, the question must be asked: Why would a country like the United States be so opposed to having its own digital currency?

The idea of a CBDC in itself is nothing too taxing. In essence, digital dollars would be based on blockchain technology rather than having traditional dollars moving around between accounts. That would dramatically decrease transfer times, cut fees, and do away with the middlemen the intermediaries along the way who slow things down and take a cut for themselves.

The Federal Deposit Insurance Corporation found that in 2021, there were still 5.9 million unbanked households in the United States, a massive number by any standard.

A CBDC would mean that the Federal Reserve would effectively oversee all the bank transfers in the country, as there would be no alternative. And having everything under one roof means one mistake or failure would affect everyone rather than be limited to one bank, for instance.

Recent:Indian state governments spur blockchain adoption in public administration

But perhaps the biggest argument against a CBDC is that, for cryptocurrency purists, having a central institution overseeing a currency is the very thing crypto was designed to avoid. Why now make a U-turn?

Political motivations play a significant role in the discussion in the United States. In March 2022, President Joseph Biden said his administration would place the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC.

This provided fodder for the Republican party to come out against the plan, citing invasion of privacy and claiming it was another form of government control. DeSantis even came out with an Orwellian prediction of the government stopping its citizens from buying fossil fuels or guns if such legislation were in place.

This is not to say that the U.S. hasnt looked into a CBDC, as it has extensively.

In 2020, the Federal Reserve launched Project Hamilton to study the viability of a CBDC. By 2022, it had developed a system that took elements from the workings of Bitcoin but moved away from its rigid blockchain backbone. The result was a system that can process 1.7 million transactions per second, light years ahead of the Bitcoin blockchain and quicker even than Visa, which can deal with about 65,000 transactions per second.

David Millar, data center coordinator at Santander, told Cointelegraph: The leaps forward they made during Project Hamilton were truly staggering. When we heard of the progress they were making, we believed that our entire infrastructure would need to be completely revamped within the next five years.

Nevertheless, the project completed its initial phase in December 2022 and went no further. Once again, voices of dissent from Congress attacked the project, saying it had been carried out solely with academics and the public sector in mind and the average citizen would not benefit.Millar added: The time and effort that went into Hamilton and the results they produced; its a tragedy that most of it will never see the light of day.

The issue of privacy is one of the most prominent foes of the digital dollar. The main argument of the dissenters is that if there is to be a digital dollar, it should effectively be like the cash dollar is now, with its benefits of anonymity coupled with the power and speed of a cryptocurrency. Those who favor a digital dollar argue that we already have such a thing, but its just not called that yet. Credit card money is digital for all intents and purposes, and are any of us mailing cash to Amazon to pay for things?

The world is moving toward a cashless society, and the U.S. is no exception. In 2022, only 18% of all U.S. payments were made in cash, down from 31% in 2016.

Magazine:AI has killed the industry: EasyTranslate boss on adapting to change

The U.S. is also a country of strange contradictions. While it surges ahead in many areas, such as technology, its banking system remains rooted in the traditional, with check payments still being the norm. Dragging a whole nation away from that is a tall order.

So, what does the future hold for a potential U.S. CBDC? Well, very little. Project Hamilton closed with no indication of a second phase, and according to Darrell Duffie, a professor of finance at Stanfords Graduate School of Business, while work is continuing, it has slowed to a snails pace, and nobody is charging ahead openly.

It seems for the foreseeable future, this will be one part of the cryptosphere where the U.S. is not a pioneer.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.# Federal Reserve # Law # Government # SEC # Adoption # United States # Tokens # CBDC # Regulation

Add reaction

Add reaction Read more How to track and report crypto transactions for tax purposes How to buy Bitcoin with Venmo Sky-high interest rates are exactly what the crypto market needs

Continue Reading

World

Trump says land operations against Venezuela drugs gangs to start ‘very soon’

Published

on

By

Trump says land operations against Venezuela drugs gangs to start 'very soon'

Donald Trump has warned US action against suspected Venezuelan drug traffickers will move to the land “very soon”.

American forces have carried out at least 21 strikes on boats it claims were carrying narcotics to its shores over the last few months.

The US has accused the South American country’s president, Nicolas Maduro, of being involved in the drugs trade – a claim he denies.

Venezuela has said the attacks, which have killed more than 80 people, amount to murder.

Mr Trump made the comments while in Florida for Thanksgiving. Pic: Reuters
Image:
Mr Trump made the comments while in Florida for Thanksgiving. Pic: Reuters

‘We warned them,’ says Trump

America’s most advanced aircraft carrier is among the ships that have been deployed to the Caribbean Sea and eastern Pacific as part of Operation Southern Spear.

Mr Trump said on Thursday he was preparing to significantly ramp up the response.

“You probably noticed that people aren’t wanting to be delivering by sea, and we’ll be starting to stop them by land also,” he told military service members in a call.

“The land is easier, but that’s going to start very soon.”

“We warned them to stop sending poison to our country,” Mr Trump added.

The US has released videos of boats being targeted, but hasn’t provided evidence – such as photos of their cargo – to support the smuggling claims.

Please use Chrome browser for a more accessible video player

Three killed as US strikes another alleged drug boat

Even if the boats are cartel vessels, Sky’s chief correspondent Stuart Ramsay says the final destination for the drugs is likely to be Europe and West Africa.

The Pentagon has sought to justify the strikes by labelling the drug gangs as foreign terrorist organisations – putting them on par with the likes of al Qaeda and Hamas.

This week it formally designated Cartel de los Soles (Cartel of the Suns) as such, and said the group was headed by Mr Maduro and “other high-ranking individuals” from his regime.

Another Venezuelan drugs group, Tren de Aragua, was designated a terror organisation by the US in January.

Please use Chrome browser for a more accessible video player

Venezuelan president dances to speech remix

Read more:
Trump may have another motive in war on drugs
The US-Venezuela crisis explained

Mr Maduro – seen by most countries as a dictator who’s cheated elections – has accused the US of “fabricating” a war to overthrow him and install a more favourable government.

Venezuelan officials have also claimed Mr Trump’s true motivation is access to the country’s plentiful oil reserves and other natural resources such as gold and diamonds.

Experts say Mr Maduro, 63, could use oil as a bargaining chip in any future negotiations.

Mr Trump has said previously he would be open to talks – but that prospect seems unlikely, with the Venezuelan leader wielding a sword this week as he vowed to “defend every inch of this blessed land from imperialist threat”.

Continue Reading

World

Israeli forces kill two Palestinian men in West Bank after they appear to surrender

Published

on

By

Israeli forces kill two Palestinian men in West Bank after they appear to surrender

Israeli forces killed two Palestinian men in the West Bank after they appeared to be surrendering.

Palestinians said the killings, which were captured on video and shown on two Arab TV channels, were carried out “in cold blood”.

In the video, the men were seen exiting a building and lying on the ground in front of Israeli forces in the northern West Bank city of Jenin.

Both men lifted their T-shirts and held their hands in the air, apparently to show they were not carrying weapons or explosives.

The soldiers then appeared to order the men back inside the building before they were shot.

A Reuters journalist in the area saw the men leave the building, appearing to surrender, and later, after hearing shots fired, saw Israeli forces standing near what appeared to be a lifeless body.

The men were identified as al Muntasir Abdullah, 26, and Yousef Asasa, 37, by Palestinian authorities.

Footage of the incident has been broadcast on Arab TV channels
Image:
Footage of the incident has been broadcast on Arab TV channels

What has Israel said about the incident?

A joint statement between the Israeli Defence Forces and Israeli police said: “Earlier this evening (Thursday), during an Israel Border Police and IDF operation in the area of Jenin, the forces operated to apprehend wanted individuals who had carried out terror activities, including hurling explosives and firing at security forces.

“The wanted individuals were affiliated with a terror network in the area of Jenin.

“The forces entered the area, enclosed the structure in which the suspects were located, and initiated a surrender procedure that lasted several hours. Following the use of engineering tools on the structure, the two suspects exited.

“Following their exit, fire was directed toward the suspects.

“The incident is under review by the commanders on the ground, and will be transferred to the relevant professional bodies.”

Israel’s far-right national security minister Itamar Ben-Gvir said the military and police unit involved in the shooting had his “full backing”.

“The fighters acted exactly as expected of them – terrorists should die!” he wrote on X.

A Reuters journalist captured images from near the scene. Pic: Reuters
Image:
A Reuters journalist captured images from near the scene. Pic: Reuters

‘An outright extrajudicial killing’

But Palestinians and human rights groups say Israeli investigations in such incidents yield few results, with Israeli troops rarely prosecuted.

The Palestinian prime minister’s office in Ramallah also accused Israel of executing the men “in cold blood”, calling the shooting “an outright extrajudicial killing in blatant violation of international humanitarian law”.

Yuli Novak, the executive director of B’Tselem, an Israeli human rights organisation, said: “The execution documented today is the result of an accelerated process of dehumanisation of Palestinians and the complete abandonment of their lives by the Israeli regime.

“In Israel, there is no mechanism that acts to stop the killing of Palestinians or is capable of prosecuting those responsible.”

Read more from Sky News:
Hong Kongers reel from fire disaster
National Guard trooper shot in DC dies

Israel’s military has scaled up its military operations in the West Bank since the October 7 Hamas attack, which triggered the war in Gaza.

Since October 2023, Israeli forces and settlers have killed more than 1,000 Palestinians in the West Bank, according to B’Tselem, which said the perpetrators were “granted full impunity by Israel”.

Continue Reading

World

Swiss tourist killed in Australia shark attack – as partner in critical condition after fighting to save her

Published

on

By

Swiss tourist killed in Australia shark attack - as partner in critical condition after fighting to save her

A Swiss woman has died in a shark attack in Australia – with her partner in a critical condition after trying to save her.

It happened on Thursday at Kylies Beach in Crowdy Bay, near Port Macquarie, about 218 miles (350km) north of Sydney.

Police said a passer-by who made a tourniquet to stem the man’s bleeding had probably saved his life.

Switzerland’s foreign affairs office didn’t name the victims – who are both believed to be in their 20s – but confirmed they were Swiss citizens.

The pair are said to have arrived the night before, camping nearby before going for a swim with dolphins at dawn – a time when sharks are more active.

The man suffered major wounds to his thigh after trying to fight off the shark and dragging his partner more than 50m back to shore, reported Sky News Australia.

The woman died on the sand but call handlers instructed the passer-by how to fashion a tourniquet from a swimsuit in order to treat the man.

Early assessments indicate a bull shark may be responsible. File pic: iStock
Image:
Early assessments indicate a bull shark may be responsible. File pic: iStock

New South Wales Ambulance superintendent Josh Smyth said the backpacker’s quick thinking was “heroic” and created valuable time for them to reach the remote, unpatrolled beach.

Sky News Australia said initial indications are a large, mature bull shark may be responsible.

The beach has been closed while drones scour the area and drumlines have been laid in the hope of capturing the shark.

Read more from Sky News:
National Guard member dies after gun attack
Hong Kong reels from worst modern disaster

Authorities are also reportedly reviewing “harrowing footage” captured by the couple before the attack that could reveal more about what happened.

The man remains in a critical condition after being airlifted to hospital.

The attack comes two months after a man was killed by a shark, believed to be a great white, while surfing at a popular Sydney beach.

Continue Reading

Trending