- While the world was distracted and watching the events of Russia’s attack on Ukraine, President Biden quietly issued an executive order on March 9 that directs federal agencies to develop policies for the US government to regulate and issue a new digital currency, tentatively called the FedCoin (1).
- Digital cryptocurrencies have seen explosive growth in recent years. The combined assets of non-governmental digital currencies (those not issued by governments, such as Bitcoin, Ethereum, and others) had a market capitalization of over $3 trillion in November 2021. This valuation was up from a capitalization of only $14 billion in 2016. This incredible growth rate represents a 214-fold increase in cryptocurrency holdings in just 5 years.
- Monetary authorities are now exploring or issuing central bank digital currencies (CBDCs) to get control over non-state and privately-issued cryptocurrencies. Because of Biden’s executive order, the US may soon issue a CBDC that will revolutionize commerce as we know it.
- People who now hold assets in private digital currencies may be required to transfer those assets into state digital currencies in the near future. These events are moving forward to ultimately fulfill the End Times prophecies in the Bible related to the Mark of the Beast.
On March 9, 2022, the White House issued an executive order with far-reaching implications for anyone holding digital assets (1). The order authorizes several US government agencies to develop plans for studying, regulating, and monitoring cryptocurrencies including control over the exchanges that trade in them. However, the new executive order doesn’t just provide for new regulations and control, it also provides the authority to study and develop the first US government-issued cryptocurrency.
Anytime money or wealth is created or flows in new ways, the government is always quick to step in and get its regulatory tentacles into it. No doubt this will include a vast new set of regulations and new tax laws to extract revenue from the buying and selling of digital assets. Unlike commerce done with US dollars or smart cards, the new digital currency being planned would allow the government to monitor every transaction in real-time and extract fees or other taxes from each transfer of value.
Biden’s executive order states,
“We must reinforce United States leadership in the global financial system and in technological and economic competitiveness, including through the responsible development of payment innovations and digital assets. The United States has an interest in ensuring that it remains at the forefront of responsible development and design of digital assets and the technology that underpins new forms of payments and capital flows in the international financial system…”
The US government is moving quickly to get cryptocurrencies under the control of the regulatory agencies. However, the new executive order also provides funding for research and development into issuing a new US CBDC. The order provides measures to…
“Explore a US Central Bank Digital Currency (CBDC) by placing urgency on research and development of a potential United States CBDC, should issuance be deemed in the national interest. The Order directs the US Government to assess the technological infrastructure and capacity needs for a potential US CBDC in a manner that protects Americans’ interests. The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a US CBDC, including development of a plan for broader US Government action in support of their work. This effort prioritizes US participation in multi-country experimentation, and ensures US leadership internationally to promote CBDC development that is consistent with US priorities and democratic values.”
The executive order also provides for the Secretary of the Treasury to study and produce a report on the future of money within 180 days. Then, within 210 days, a legislative proposal must be presented to the president regarding a new CBDC to be issued by the US.
When an official US digital currency issues—and make no mistake, it will issue—it will forever transform the way buying and selling are done in the US and throughout the world. This new digital currency is unlike present-day cryptocurrencies in that it will act as a digital representation of the US paper and coin fiat currency. Thus, the new US digital currency will become the monetary instrument of commerce that is created under the control of the Federal Reserve Central Bank system, in the same way as the US dollar has always been issued.
In 2020, 8 of the largest central banks issued an overview of digital currency, including the principles and motivations for developing them and steps to take to reach the digital future (2). According to a US House of Representatives hearing by the Committee on Financial Services, there are now 81 nations researching, developing, or managing CBDCs (3). These nations represent 90% of global Gross Domestic Product, which means that digital currency is coming to the world with rapid intent and broad adoption.
The transformation of money and commerce in this century has occurred with incredible speed. The movement from a cash-based economy to a cashless society based on smart cards and smartphones (which has occurred in less than 25 years), is now being followed by a transformation to a completely digital economy underpinned by digital currency. The new digital currencies will eventually replace all forms of physical money. Several years from now, this effort could transform the US dollar-based economy into a new one that involves buying and selling only in digital currency.
The first CBDC, the Sand Dollar, was launched in the Bahamas in the fall of 2020 (4, 5). Being a small nation, they could move quickly to develop and issue the new digital currency without much disruption to their economy. Now all the major economies of the world are moving to catch up.
In April 2021, the People’s Bank of China issued what they called their Digital Currency Electronic Payment (DCEP) system, and it is currently undergoing extensive public testing (6-10). It is designed to move funds nearly instantaneously through international exchange and at a lower cost. It even allows transactions to occur between offline devices such as two smartphones to permit flexibility in payments, especially between individuals.
The European Central Bank also implemented a study and experimentation phase of digital currency that they began in July of 2021 (11). As these digital currency systems are developed, they will be standardized so that commerce can occur anywhere in the world without encountering incompatible systems or software.
The increase in state-sponsored digital currencies will be followed by a decline in privately-issued cryptocurrencies. In certain countries, trading in cryptocurrencies will become illegal. In other countries, Bitcoin, Ethereum, and other cryptocurrencies will be inhibited to the point that they will suffer major declines in value. For instance, on April 1, 2022, India approved a new law, Finance Bill 2022, which slaps a flat tax of 30% on all cryptocurrency income with no allowances for deductions or losses. In the aftermath of this law, trading in cryptocurrencies has plummeted in India.
The rapid rise of state-sponsored digital currency has set off alarm bells for those concerned about personal privacy and government surveillance and control (12-13). The combination of smartphones and digital currency will allow governments to track and control everyone with absolute power. The electronic network will know where you are and what you buy or sell almost instantaneously.
Combine this system with tyrannical governments and you end up with the greatest potential for diabolical control over society ever conceived. Imagine if the social scoring system and surveillance network of China (14) are merged with control over digital currency, then you could have absolute power over a person’s ability to participate in society. The government could enable or shut down a person’s life simply with the flip of a digital switch.
The Bible predicts that in the Last Days an evil global empire will arise that will require all people to obtain a Mark in their right hand or in their forehead and that no one will be able to buy or sell without this Mark. The Mark of the Beast will be digital in nature, and it will inaugurate a global government led by the Antichrist, which will have complete control over everyone everywhere. That day is approaching quickly with the rise of digital currency. The combination of this new way of buying and selling with the need for security and identity is leading the world down the path to this prophesied Mark.
References
1. Executive Order on Ensuring Responsible Development of Digital Assets, The White House, March 9, 2022.
2. Bank of Canada, European Central Bank, Bank of Japan, Sveriges Riksbank, Swiss National Bank, Bank of England, Federal Reserve, and the Bank for International Settlements, Central bank digital currencies: foundational principles and core features (Accessed July 22, 2021).
3. House of Representatives, Committee on Financial Services Hearing, The Promises and Perils of Central Bank Digital Currencies (July 23, 2021).
4. Forbes, The First Nationwide CBDC In The World Has Been Launched By The Bahamas, (Oct. 21, 2020).
5. Bloomberg, How the Tiny Bahamas Beat Global Giants in the E-Currency Race, (May 20, 2021).
6. Financial Times, Virtual control: the agenda behind China’s new digital currency, (Feb. 17, 2021).
7. Reuters, Analysis: China digital currency trials show threat to Alipay, WeChat duopoly (Apr. 25, 2021).
8. Ledger Insights, China suggests principles for cross border CBDC to ‘avoid dollarization’ (Mar. 25, 2021).
9. Ferguson, N., Bloomberg, Don’t Let China Mint the Money of the Future (Apr. 4, 2021).
10. Council on Foreign Relations, Assessing China’s Digital Silk Road Initiative (Last Accessed Jul. 16, 2021).
11. European Central Bank, Eurosystem launches digital euro project (Jul. 14, 2021).
12. Fanusie, Y., Central Bank Digital Currencies: The Threat From Money Launderers and How to Stop Them (Dec. 14, 2020).
13. Disparte, D., Diplomatic Courier, The Risks Of Central Bank Digital Currencies (Jun. 16, 2021).
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