Crypto Propaganda

TAFKAS will defer to the wisdom of the Doom Lord, but there was a very interesting piece in today’s Wall Street Journal:

The Coming Currency War: Digital Money vs. the Dollar.

TAFKAS is far from a crypto currency expert, but he has done a few transactions and broadly understands the logic of the system(s).

There is no doubt that government and central banks don’t like crypto-currencies – because they can’t control them and they can’t be used to steal from citizens through things like money printing and negative interest rates.

So there is discussion amongst the central planners, sorry central bankers to develop “crypto fiat currency”.  Why:

The benefits of digitization could be myriad. In addition to faster and cheaper money transfers across borders, a survey conducted by the International Monetary Fund found that central banks are looking at benefits like lower costs, more efficient monetary policy, blunting competition from bitcoin and its peers, and offering a risk-free payment network to the public.

Blunting competition.  Efficient monetary policy.  You know, a government sponsored means to take money and otherwise discourange savers.

But this WSJ article had some other corker quotes:

The U.S. has been wary about the growth of cryptocurrencies. Federal Reserve Chairman Jerome Powell said this month that consumers have many payment options already. Moreover, he added, the cybersecurity risks involved with a digital currency are “quite daunting,” pointing out that if hackers gained access to the system, they could siphon off money from the electronic vault.

Hackers could siphon off money.  Ha!  You mean like central banks do right now?

Is this a concern about the integrity of the system or textbook lobbying and fear mongering to protect an entrench state monopoly?

And there is this obvious statement:

“No central bank wants the currency to be something it doesn’t control,” says Jeremy Stein, a Harvard University economics professor who served as a Fed governor from 2012 to 2014. “In the extreme, if everything in the world is priced in Libra and not in dollars, the U.S. cannot set monetary policy—because setting interest rates in dollars, who cares?”

Yep.

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7 Responses to Crypto Propaganda

  1. stackja

    PayPal Australia ordered to do audit by financial crime watchdog
    The Sydney Morning Herald-1 hour ago

  2. Bruce of Newcastle

    Another interesting piece today:

    Google’s “Quantum Supremacy” To Render All Cryptocurrency & Military Secrets Breakable

    Google’s announcement that it has achieved “quantum supremacy” with a 53-qubit quantum computer greases the skids for all cryptocurrency and military secrets protected by cryptography to be breakable in a stunning new development that will change the world.

    The Big Tech corporation’s new quantum processor took a mere 200 seconds to complete a computing task that would normally require 10,000 years on a supercomputer.

    The 53-qubit quantum computer can break any 53-bit cryptography in seconds, meaning Bitcoin’s 256-bit encryption is vulnerable once Google scales its quantum computing to 256 qubits, something their own scientists say will be possible by 2022.

    I’ve included the link to a Fortune mag article from 20 Sep that the author linked. If it is true then the cryptocurrency concept will be back to the drawing board.

  3. What I don’t really understand is that pretty much everyone is paid by direct deposit into a nominated bank account, so the money trail has already begun. Soon enough, cash will become redundant and for most people is already, so the second part of the money trail is already in progress. Thirdly, it’s virtually impossible to hide your internet activity, so the third part of the money trail can be more or less tracked, if desired. This will become more intrusive in future, especially when it involves any financial transactions.

    So who and how will cryptocurrency serve and protect?

  4. Dr Fred Lenin

    Da Goombahs of Cosa Nostra do not approve of banning money ,no effin way paysano wegotta fix dese bastids ,put out contracts on dem assholes ,how you run a numbers game without da cash ,Eh? How you lend money witout money ? De guys who thunk this up need concrete shoes .

  5. pbw

    Bruce,
    Yes indeed. If a quantum computer ever worked as originally hyped, encryption would be dead, an we would live in a brave old world, where the only secrets were those entrusted to trusted individuals, and the computer required to reveal the secret is a torture chamber.
    If.
    Colour me skeptical. If, on the other hand, quantum computing devolves into using quantum effects to make standard computing processes faster (even very much faster) the solution is to increase the difficulty of the cyphers.

  6. Speedbox

    If it is true then the cryptocurrency concept will be back to the drawing board.

    Yes, but not just cryptos. All banking, credit cards, data stored in most Government and private industry data banks will be vulnerable. By 2024, and assuming the anticipated rate of capability in quantum computing is also true, almost all military grade encryption will also be exposed.

    If Google have really gone beyond the theoretical and actually produced a machine that can do this, then the ‘genie is out of the bottle’. The implications are enormous for every Government, company and person on the planet.

    Again, if true, mark this date in your diary as the date that the world changed (even if it doesn’t know it yet).

  7. Howard Hill

    If you don’t hold it you don’t own it; a statement as old as the earth itself.
    Crypto’s is what they want, BitCon was setup to usher in a new way of screwing everyone, these pieces quoted are just reverse psychology.
    In any case, crypto’s will be useless to Aussies in the near future because no electrical power and an NBN that doesn’t work!

    Gold and Silver, babe, the best crypto’s ever discovered.

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