This article originally appeared on frankamerica.com on 9/25/21
Central Bank Owned Commy Crypto
First they punt the miners out of the country, now they’ve locked up all the on-ramps to buying, trading, and storing cryptocurrency. Yesterday’s headline on CNBC, “Central Bank Vows Harsh Crackdown on Cryptocurrency”, indicates, “the People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. [and] Overseas crypto exchanges providing services in mainland China are also illegal.” Basically, China is bullguarding the joint on digital currency and running the competition out of town, having piloted its digital yuan (e-renminbi) central bank owned commy crypto program in several regions of the country already.
China’s CBDC (Central Bank Digital Currency) has already transacted over 5.3 Billion (34.5 Billion Yuan) since June of 2021. Fortunately, the markets took a haircut (much like they did when the miners got punted from the PRC), and it’s discount time for Hitler in Germany (ala The Producers). The way I see a politically motivated bitcoin price drop now is like that dude in the yellow jacket behind the tree meme. It’s a FUD discount. Trying to stop crypto is like throwing more weight at a trampoline.
Crypto Regs Are a Litmus Test
Bankless’ Ryan Sean Adams tweeted yesterday that how a nation state treats cryptocurrency is like an acid test for authoritarianism. In the United States, the Securities and Exchange Commission (SEC) simply sends a letter (not even a charge), to Coinbase and the entire crypto-sphere (including many notable figures like Mark Cuban) are more pissed than a group of frat boys on game night without a keg tap. There are different jurisdictions on this land, and how they operate is most certainly a litmus test for economic individuation.
The gem to be conveyed here is that politically motivated price action (based on regulations from any nation state) are artificially induced speed bumps to the proliferation and mass adoption of digital currencies. This is evidenced by the fact that there will always be digital jurisdiction havens for cryptocurrency, and one can’t just put that genie back in the bottle. Whether crypto is accessed on Web3 through VPNs, or on Coinbase with your Credit Card is up to the nation states. Do you want to profit, or do you want to drive out the profit?
As far as the US is concerned, a recent article in TIME magazine highlighted many reasons they are behind China in the pursuit of a CBDC. The US is still talking about it and China is doing it. According to Fed Chair Jerome Powell as of last Wednesday, Sep 21st, 2021, they’re still wondering whether or not to even do it.
So, with that in mind, and with the creation of myriad private currencies and currency-like products, we are working proactively to evaluate whether to issue a CBDC and, if so, in what form. — FED Chair Jerome Powell
But more importantly than a FED coin is the ability to access cryptocurrency without having to resort to cloak and dagger measures, and in this regard, the United States is leaps and bounds ahead of any communist nation state that aims to try and stop it. It appears like the US will settle for, “can we at least tax it?” If you can’t beat em’ join em’. Right?
On that note check my tweet projecting El Salvador’s national rank in purchasing power parity (PPP) going from 112th in 2019, to top 50 by 2025, just because they hold bitcoin on their balance sheet. If the US really wanted to win, they’d stop printing bond credits and start buying bitcoin.
Frank America is a researcher, writer, and artist exploring the crypto-sphere.