I'm not exactly sure how this has any benefit to consumers, my Bank already allows me to perform digital transactions. Why should the Government need to compete in that market. The only explanation that seems to be somewhat relevant is the value of metals in coins becoming worth more than their corresponding currency values. So then this becomes a spin off campaign from removing the penny from circulation. Of course this is only a half truth, since the proper solution would be to prevent inflation to begin with and then the penny would still have a high value. Most people tend to think the world just runs off inflation and neglect to educate themselves as to why it is occurring. The same argument that wars are good for the economy is another misconception. Anyway I don't want to derail my topic...
Loss of freedom
Whether by accident or design this is yet another example of us losing our freedoms. This means that one day I will no longer be able to safeguard my own finances. I will not be able to keep a physical tangible currency on my person or in a personal vault and so the government will be entrusted to safeguard my money. I lose the freedom to protect my own wealth.
Increased personal liability
In the case of my Bank getting hacked, they would assume liability in the event of losses. Or in the event a company containing my credit information getting hacked like Sony, Winners, etc... They would be liable for security breaches. However in the case of the Government being hacked and taxpayers losing money, than the taxpayers will be backing the losses.
Loss of privacy
The article describes these transactions as being anonymous. This is simply misleading, and again another half truth. I found this article because I am a computer programmer, I work with Insurance Companies and with many of the large Canadian Banks. So I can lend some credibility to this argument and say with certainty you will not be entirely anonymous. This is because in order for a transaction to proceed a level of trust must be established with a vendor, and the Royal Canadian Mint would be the authority in regards to that trust. So perhaps you will be anonymous to the vendor, but all your transactions would be tracked by the Government.
It's amazing how we accept inflation as a vital component to our monetary system. It is an economic axiom that is blindly accepted. At the same time we get to blame it for everything. Rather than fixing the problem we just keep fixing the symptoms.
That's why I buy gold and silver;
Allows me to safeguard my own finances in this crazy worlds of money being a blip on a computer screen.
That may be a smart move, it has always proven to be a hedge against inflation. I am still hesitant about investing in it, even though it has kept its value for thousands of years it's still just a metal. Obviously it is useful for several things including electronics, but a large part of its value is perception. Even Warren Buffet advises against buying gold because it doesn't actually go up in value long term, it just protects from falling value of the dollar. Investors want to have a margin of profit, not only break even.
On the topic of gold there may be a huge demand for it soon. Several central banks around the world, specifically the Federal Reserve are considering reclassifying gold as a zero risk asset. Currently in the united states it is considered high risk so only 50% of its market value is recognized. See article here http://www.profitconfidential......d=OUTBRAIN
This is fairly dangerous and its not the same as tying the value of dollar to price of gold. There is speculation here mixed with giving more lending power to the banks. If the price of gold ramps up from speculation or high demand, and then banks suddenly are up +50% in value for all gold they own that could potentially initiate hyper inflation. I don't even know how much gold banks own realistically or what that amounts to in $$$, but it still concerns me nonetheless. Also, what then happens if after this ramp up there is a deflation then banks will have over extended on their debt if they loaned against gold assets. Sounds like subprimes all over again.
I might buy into gold now though, assuming the risk for government confiscation of gold is low. (This has happened before)
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