President Biden just signed an executive order to change our money and the way that we transact this is very important to understand. And I have all the details for you on this topic.
So President Biden did just sign this executive order so that federal agencies, including the treasury, as well as other entities like the Federal Reserve, can spend the next 180 days to start researching what it would be to actually implement a digital dollar, otherwise known as Fed Coin or CBDC central bank digital currency. Now stick with me on this. This is going to maybe get a little bit confusing. But at the same time, let me talk you through the details on this, because the money that we carry around in our pockets, the paper stuff, and the coins, this may be a thing of the past relatively soon here. So we got to understand all this very closely.
We need to understand what the impacts are behind this type of transaction as far as this type of implementation of a digital dollar and what this would actually mean going forward. So stick with me on this and I’ll try to break it down as simple as I can here to make sure that we all understand what this actually means for us going forward. So they’re throwing around a couple of different names right now. So first off, it could be called a digital dollar or it could be called Fed Coin. Either way, let me explain this a little bit further here.
So I think at this point, all of us have probably at least heard about cryptocurrencies like Bitcoin Ethereum, as well as all of the other thousands of coins out there. Essentially just a digital currency, right? There’s no such thing as a physical coin like that, but rather it’s just all digital. It’s all online, it’s on your phone, things like this. But there’s no actual physical coins.
That’s exactly what they’re examining right here. So the executive order that President Biden just signed basically calls on these federal institutions to spend the next 180 days doing all the research and figuring out what is the impact of a digital dollar. What are the risks of a digital dollar? What are the other aspects, like equity and all of these other things about a digital currency if the Federal Reserve was to actually implement one. Now, here’s the thing.
I’ve been talking about this for probably a year and a half now. It’s going to be coming whether they come out in their report here in the next 180 days and say, oh, no, the risks would be way too high. Here’s the thing. The world is going digital. It’s going to be coming.
The things that we carry around in our pocket, the green stuff and the coins that we carry around, those are going to be a thing of the past. It’s just a matter of time. But here’s the thing. The executive order that President Biden signed is basically calling on them, hey, let’s start the train moving here as far as getting a CBDC, a central bank digital currency. So let me tell you the more details about this so we can understand this a little bit further as far as the impacts to us, the American people, and what this would mean for us going forward.
So here’s what would happen. The Federal Reserve, who is basically the people who print all the money right now, how they print billions of dollars every single month. Yeah, they would be the people behind this. So they would be the ones who actually create this new Fed coin or the digital dollar. Again, it’s called multiple different things, but it’s essentially the exact same thing with multiple names.
So the Federal Reserve would be the one who creates this new digital dollar and they’d be the one who actually distributes the digital dollar. So basically what it’d be is all the green stuff, all the physical money that we have in our pockets would be transferred from physical into digital. Therefore, there would be no more physical stuff floating around. However, the Federal Reserve has already mentioned that this would not replace the physical dollars that we have in our pockets and the coins, but rather it would just be like a derivative. Right.
It’d be like a substitute. It would be something in addition to. But let’s be real with ourselves. I think all of us know better. Here’s what would happen.
They would roll out a digital coin and then eventually, over time, they would start siphoning all of the physical cash out of the system and maybe over the course of a year, two years, maybe five years, I don’t know, the time frame. Eventually, all the physical stuff that we see on our pockets, it’d be gone. Whoa. What happened to it? Well, yeah, they’ve siphoned it out of the system, and now we’ve all been forced into this digital coin.
So the days of going out and meeting in the parking lot of Walmart or something like that to buy a skateboard that you found online and pay $20 for cash. Yeah, those days will be gone. So no more of that stuff going on. But anyway, basically what they’re going to do is just like a Bitcoin or an Ethereum, something like that. There’s going to be a ledger.
So basically, you transact between parties. You all have your own physical or not physical, but you have your own unique, secure, basically like key code, maybe like a 20 digit character of characters. And then basically that is consistent with your digital wallet, where you go out and you want to transact with somebody and say, hey, I want to buy this skateboard from you. What’s your code or whatever, what’s your thing? And then your QR code or whatever.
However, they decide to do this and basically just scan it or you find a way to send it to them and you basically just send them money instantly, digitally, through your phone, or whatever other types of means that they would have. So basically, everybody would be set up with a digital wallet or a digital bank account. And that’s where you would hold your new digital dollars. Your new little fake digital dollars, essentially is what they’d be, right? Yeah, kind of interesting.
But here, let me talk through a couple of other things about this and why a lot of people are actually throwing a lot of contract or why there’s a lot of controversy about this, and why a lot of people are not really enjoying this idea here’s why? Because literally every single transaction would be tracked just like Bitcoin and Ethereum. There’s a ledger where every single transaction between all parties are tracked on this ledger. Right? Well, with these Bitcoin and Ethereum, the cryptocurrencies out there now, it’s all anonymous, right?
You don’t really know who’s transacting. You just know that it’s all being basically recorded on a ledger. But yet nobody knows who’s transacting between each other. However, with the Federal Reserve coin or the Fed coin, the digital dollar, essentially, the Federal Reserve would have the ability to track every single transaction. They could see that, hey, I just sent you $50.
I just sent you $100. Whatever it happens to be, they can see every single transaction, the date, the timestamp of when it actually took place. They can see the dollar amount. They can see the exact parties me, Matt, I just sent you Bob, $100 or whoever, Bob, Mary, whatever. It doesn’t matter at all.
The point is they could see every single transaction going forward. So a lot of people that are looking at this are saying, I don’t like this. We’re going to be tracked. I don’t want to be tracked. So that’s kind of one of the cool things about cash right now.
And again, I’m not saying that we’re doing anything unethical. I’m just simply saying a lot of people love the kind of the transparency behind cash and the ability to go out and transact and not have somebody follow you everywhere you go, everything that you do. So that is one of the main controversies right now about a digital dollar. So next, going forward, let me tell you one of the good things about this. And I’ve seen quite a bit about this.
And I’ve actually talked about this about a year and a half ago. I started talking about this. Here’s one good thing. If there happens to be a silver lining, this is what it would be. So when it comes to a digital currency, like I said, everybody would be essentially set up with a digital wallet or a digital like a bank account, essentially where your digital currency would go into.
Now, here’s one of the things they’ve talked about this. In fact, I just saw this recently as well. They’ve talked about this saying one of the best things about a digital currency would be that the Federal Reserve could just deposit these coins or the digital dollars into your account whenever they decide to do so. For those people who are maybe low income or living on a fixed income or any time that we get into a situation like what we saw in 2022, 2021 where they established these stimulus checks, here’s what they would do. Rather than waiting a week for the treasury to send them out, rather than waiting two weeks or a month for the treasury and the IRS to work together or the Social Security Administration and the IRS to work together to get these accounts and all the ledgers and all this stuff put together so they can send out the necessary money into the bank accounts.
The Federal Reserve would already have all that information. Basically, all they do push a button, and boom, you’ve got money in your account immediately, instantly. No waiting a week. No waiting a month. No waiting for three weeks for it to arrive in your mailbox as a physical check.
Those days will be gone, too. Basically, all they would need to do is just basically push a button and that money would be deposited digitally into your new bank account immediately. No waiting it’s there. Snap your fingers and boom, it is in your account immediately. So the lightning speed behind digital currency is kind of one of those things that actually would be nice when you transact.
It would be literally payment would be sent from you to the next person or from the other person to you immediately. No time wasted. It would be fast. Like lightning speed, fast. So that is one of the nice things about cryptocurrency is generally it is very, very fast.
So, again, that is one of the nice things. However, I want to throw this out there as well. Something else that I’ve seen recently and I’ve talked about a year and a half ago, in the event of a digital dollar actually being introduced, here’s something else that they would consider. Those lower-income individuals, as we’ve talked about universal basic income and guaranteed basic income, this would be the easiest way. The Federal Reserve on a monthly basis, on a bi-weekly basis, on a weekly basis, whatever it happens to be,
the Federal Reserve could just deposit on a regular basis a guaranteed basic income program. Right. Or amount right into your bank account, whatever that would be $100 worth, $200, $500,000, whatever it would decide to be. It would be so incredibly easy. The Federal Reserve would again, simply just push a button, and boom, you’ve got a bunch of digital currency right there in your account as your monthly guaranteed basic income payment.
So some of the people who are advocates for a digital currency are saying this is the way of the future. Number one, everything is going digital. And number two, for those people who are lower-income, this would be a super-easy way for us to implement a guaranteed basic income program immediately, pushing a button, boom, you’ve got the money in your account and you’re off to the races. You can go spend it wherever you want. Very interesting, right.
So basically how this would probably happen is probably at that point, all of us would be having a smartphone or some type of smart device. We probably have a unique bank account or wallet, something like this. And probably also have some type of unique maybe like a barcode or a QR code or some kind of unique type of code with our account, you go to the grocery store, for example, and you say, okay, time to pay. And you pull up your phone, you pull up your little QR code, you scan it on the scanner and boom, you’re done. You’ve paid for it right out of your new wallet, your digital wallet, your CBDC, your Fed coin, or your digital dollar, whatever they happen to call it.
It’s all the same exact thing. But boom, you just scan your code and you’re off to the races. You’re done. That’s it. So it would be kind of nice in a couple of senses.
But again, at the same time, I do know that a lot of people because I’ve read about it many, many times, many people are saying I don’t like the idea of the Federal Reserve tracking everything that I do. But anyway, President Biden signed the executive order and they are spending the next six months working on all the research behind this and kind of the impacts, the risks and everything about a digital dollar going forward. Here’s the deal. Whether we like it or not, it’s coming. I guarantee it 100%, 100% guarantee before long, within the next few years.
Honestly, I don’t know if it’s going to be a year, two years, five years, ten years. I don’t know that. But I can tell you this much. A digital currency is coming. It will be a thing.
The green stuff and the paper stuff we carry around, it’s going to be a thing of the past. It’s going to be one of those things that we look back on and think, wow, remember when we carry this stuff around, it’s not going to be happening much longer. How long that’s going to be, I don’t really know. But everything is going digital. And that’s just the wave of the future.
That is how things are going right now. So it will be a thing, just a matter of time. So anyway, kind of interesting, the President signed this executive order and we’ll have to see what happens here in the next six months as these federal agencies start to come out with their reports here and how they decide to proceed with this. And as we’ve known here for probably the last year or so, the Federal Reserve has already been talking about and working on a white paper in regards to a digital currency. So, yeah, they’re already working on it essentially, is what I’m saying.
So anyway, I hope this helps you out, to let you better understand what is going on out in the real world, what’s happening with the President, what’s happening with our money, things like this. But just like with everything, there’s always kind of the negatives plus the silver lining with just about everything. So anyway, hope this one helps you out.
Enjoy your day and I’ll catch you in later. bye