The Last Hope Against Biden Bucks? By James Rickards

Maybe the states will stop CBDCs. From James Rickards at dailyreckoning.com:

For the past two years, I’ve been warning about the emergence of central bank digital currencies (CBDCs), or as I like to call the U.S. version, “Biden Bucks.”

Can good old-fashioned American federalism stop them? We’ll consider that possibility today.

If you’re a new reader who isn’t familiar with Biden Bucks, or an existing reader who could use a reminder, the Biden administration is planning to create a purely digital dollar.

These Biden Bucks would have the full backing of the U.S. Federal Reserve. They’d replace the cash (“fiat”) dollar we have now. And if Biden got his way, they’d be the sole, mandatory currency of the United States.

What does this mean for you? It would make your money less truly your own. It would be subject to government control.

We Just Want a More Efficient Payment System!

Biden Bucks are being peddled as a more efficient and convenient form of money. They say they’re just simplifying the payment system and making it more efficient. It’ll be much more convenient than the convoluted system we have today.

And they’re actually right about that. A digital dollar will be simpler, more efficient and more convenient to use.

Assume you buy gasoline at your local gas station. You pay with a credit card, which begins a payment process involving maybe five separate parties.

These include the merchant from whom you bought the gas, the credit card company, the bank and an intermediary called a merchant acquirer (no need to explain what a merchant acquirer does for today’s purposes, but just realize that it’s part of the payment system).

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