Top Analyst Says Banks Get Too Big For Depositors To Escape
Balaji Srinivasan, who used to be the chief technology officer of Coinbase, thinks that Bitcoin (BTC) is a way for US citizens to leave the money system and get away from government control.
In a new interview with Bitcoin bull Anthony Pompliano, Srinivasan says that the Federal Reserve’s plan to start its new digital payment and settlement service, FedNow, in July worries him in particular.
The service is called a central bank digital currency by the former CTO of Coinbase (CBDC). Srinivasan says that FedNow could give the government more power over how people spend their money.
“It’s really going to be one of two things. First, there are all kinds of chaotic printing and bank runs in the weeks to come, as worried depositors check on their funds, and the big branch point is whether they wire it to big banks or they turn it into Bitcoin. And that determines literally whether freedom lives, as funny as that sounds.
Because if everybody wires to big banks, and they think, ‘Oh my God, the Fed saved us, the big banks saved us,’ and all the small banks and all the tech banks and so on die, well the FedNow CBDC, which they chose to announce even in the middle of this crisis… then all the money is trapped in all the big banks, and then in July you only have like four banks left or whatever it is, the CBDC is rolled out, and ‘too big to fail’ becomes ‘too big to escape.’ You literally can’t spend your money without government approval on anything.”
The Federal Reserve says that the FedNow Service will let people and businesses send and receive instant payments at any time. The Fed did not say, though, that they plan to use CBDCs to handle payments.
The Biden Administration is looking into whether or not CBDCs could be used to make digital dollars.
Comments
Post a Comment