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CBDC Currency Reset

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BlueJay
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https://bitcoinmagazine.com/culture/cash-limits-cbdc-and-bitcoin-in-nigeria  

This is an opinion editorial by Heritage Falodun, a Bitcoin consultant and computer scientist based in Nigeria.

Nigeria, Africa’s most populous country, introduced a central bank digital currency (CBDC), the eNaira, into its financial system in late 2021, an action that paved the way for different sets of financial policies, regulations and restrictions from the country’s central bank.

In an attempt to drive consumers toward alternative options, like its CBDC, the Nigerian government has now put restrictions on the amount of cash that can be withdrawn. It has limited cash withdrawal from banks to about $225, which is around 100,000 naira per week, with a daily limit of about $45. This is another example of how Nigeria's financial terrain has been a rollercoaster of economic sabotage since the launch of the eNaira.

In the words of Godwin Emefiele, the governor of the Central Bank of Nigeria, the whole point of the CDBC is “to ensure that more people in this country are financially included. If you see, a lot has happened in terms of the evolution of money from commodity to metallic, then paper, to plastic and now we are talking of digital. And so, we need to be at pace with where the world is moving.”

In his view, Nigerians should have found that the CBDC is the solution to their financial predicaments such as inflation, monetary censorship, rigorous payment rails, epileptic cross-border payment channels and rigid access to foreign exchange, among others. Not surprisingly, the reverse has been the case, as the situation on the ground in Nigeria right now is gradually moving from “banking the unbanked” to “un-banking the banked.”

On February 2, 2023 — just two days after the initial January 31, 2023 deadline set by the Central Bank of Nigeria for all Nigerians to return the old naira denomination of 200, 500 and 1,000 notes — a Nigerian named Oluwasegun Kosemani tweeted, “I just spent 1000 Naira from my Naira @Mastercard by @gtbank to buy 10,000 Naira cash from a @palmpay_ng POS. The Nigerian government is intentionally forcing its citizens into a cashless Keynesian economy while they position their surveillance CBDC - eNaria as final destination.”

As this example shows, the well-informed Nigerians youth, which happens to be about 70% of Nigeria’s population, understand that these regulations are mostly about financial control. They are about pushing a cashless policy in which the government has complete control over all citizens while having the luxury of tracking every single transaction.

Judging with the less than 0.5% adoption rate on the eNaira since its launch about 16 months ago, it seems that only government actions, such as the cash restrictions that Nigerians are battling with right now, will force people toward using the CBDC.

Nevertheless, the Nigerians disposition is visible to the blind and audible to the deaf as the country regularly tops lists for the highest bitcoin and crypto exposure.

HOW NIGERIANS ARE ADAPTING TO NEW FINANCIAL REALITIES

To learn more about the balance between Bitcoin adoption and being forced toward the eNaira, I spoke with a few business owners in Nigeria. Eric Ogbekene, who works in the media and tech industry there and also runs a bespoke men’s fashion business on the side, said, “The cash swap policy has been ridiculous, to say the least. Today, February 4, 2023, alone, you could not get any physical cash in the entire Garki ultra modern market in Abuja, Nigeria. People are unable to take care of little business deals, like cash for services, transportation, etc. It’s so bad because even the traditional banking applications seem to be overwhelmed by the sudden surge in transactions and cannot cope.”

I interviewed an over-the-counter bitcoin liquidity provider named Oluwatimilehin Kayode, popularly known as “Pander” by his customers and merchants.

How have you been coping with business amidst this new policy and cash shortage?” I asked.

Bro, e no dey easy like that oo, but we dey push am, if I will be honest with you,” he responded in Nigerian dialect. “It’s crazy, it affected our P2P dealings a bit on exchanges as most transactions keep showing bank network errors and also there are limits on transactions and high charges. But as you know, Bitcoin will always find a way out for us amidst all restrictions. Although we had low access to cash over the counter, we keep pulling the P2P transactions through with Bitcoin and Tether using our existing, conventional ways.”

Mary Imasuen, a Bitcoin podcast host, has tweeted that, “If vendors were open to accepting bitcoin payments, we wouldn't have to deal with the craziness happening in the country right now.”

Sharing her odyssey amid the cash and transaction struggles, Imasuen has experienced people withdrawing 20,000 naira with 3,000 naira as the charge being paid to the merchants. She has stated that “money is being sold for money right now.”

Nigeria has always been a cash-based society and with the current issues, people can't get cash from banks or ATMs. Those who do get cash must pay for it at a premium and the prices for things have skyrocketed.

Perplexed as I am by the government’s actions, I feel that Nigerians are resilient. It’s no wonder that Ray Youssef, the CEO of Paxful, has written that “The youth of Nigeria taught me to think beyond the financial systems of the West and look into alternative payments to buy Bitcoin.”

Nigerians need to know right now that the CBDCs are here and that, slowly but surely, the government will continuously restrict their access to cash until it’s gone and it has fully taken away everyone’s financial freedom.

Proffering sustainable solutions, the best bet and only solution for Nigerians toward attaining a decentralized, cashless economy is through Bitcoin, which is fundamentally different from the cage of financial slavery spearheaded with CBDCs. Bitcoin’s blockchain democratizes finance with proof of work by enabling transactions in a distributed, open and transparent ledger, while CBDCs offers a centralized and closed-source fabric which gives full control and issuance to the government.

Until Nigerians decide to intrinsically separate money from State actors, the masses will remain slaves to central authorities. Ultimately, this is more of an opportunity for Nigeria to opt out and break the shackles of financial restrictions with Bitcoin.

This is a guest post by Heritage Falodun. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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BlueJay
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https://www.youtube.com/watch?v=bRuQu91ccaY  

CBDC's and the Monetary Reset: Expert Analysis from Clive Thompson [54:41 min video]

In this video we explore the new Monetary and currency reset with retired executive wealth manager Clive Thompson. Get ready for the biggest financial shift in history!

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BlueJay
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https://www.armstrongeconomics.com/world-news/capital-flow/markets-war/

Keep an eye on our Capital Flow tracking. This may become very critical in the months ahead.

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Vlastimil
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@bluejay 

Thank you bluejay 

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BlueJay
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BlueJay
Posts: 1959
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https://www.patheos.com/blogs/markdriscoll/2020/03/understanding-the-lion-bear-leopard-and-beast-of-daniel-7/  

1. Winged LionBabylon was the focus of Daniel 1-4 and is here revealed as the first kingdom.

2. Bear – The imbalanced bear was a prophecy about the joint Medo-Persian Empire in which the Persian side was larger and more dominant. The overtaking of Babylon by this empire was the focus of Daniel 5.

3. Winged Leopard – This was a prophecy about the future coming of the Greek empire which would conquer the Persian empire and expand beyond it. This prophecy came true when Alexander the Great, by his early thirties, had conquered the known world with lightning speed, metaphorically running by and flying over his enemies. Alexander died young without an heir, and so his empire was split between four generals as predicted in Daniel’s vision.

4. BeastThe Roman empire is depicted as a demonic monstrosity of animals & weapons and it came to become the largest and longest standing empire in world history. Jesus Christ was born, tried, and murdered by the Roman empire. 

 

My teacher recently gave a lecture on Daniel 7, and I realized the Beast, the Roman Empire, has existed through the City of London with many tentacles to enforce the Babylonian monetary system by the Canaanite, Rothschild.

My teacher also shared with his pupils that the Babylonian Canaanites like to use 40 years as a cycle.

I was listening to Simon Hunt today, the three months old interview by Black Swan Capitalist, and I must say Simon commands deep understanding for the subject he discusses and speaks very slowly to choose the best words that fit the context.

Black Swan Capitalist, two brothers most likely from Iran, described as the Bear in Daniel 7, draw the best from their interviewee. Kudos to both!

https://www.youtube.com/watch?v=HxxEMJYqs4A  

Simon Hunt - Global Depression By 2025 & The New Currency [51:45 video]

Exclusive Interview with Simon Hunt regarding the the new currency pegged to gold that plans to challenge the dollar as the reserve currency. Very powerful message to be heard. Simon Hunt is an economist & commodities expert with over 40 years experience. His business includes Strategic Services that provide regular analyses of the copper industry as well as the economy (both in China & Globally).

I highly recommend the above video as well as the recent interview with Clive Thompson in preparation for the coming collapse.

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BlueJay
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https://www.bis.org/publ/othp61.htm  

Project Icebreaker: breaking new paths in cross-border retail CBDC payments

The project was a collaboration between the Bank of Israel, Norges Bank, Sveriges Riksbank and the BIS Innovation Hub Nordic Centre.

While domestic payments have seen significant improvement in many jurisdictions in recent years, cross-border payments still face challenges such as high costs, low speed, limited access and insufficient transparency. The G20 has made it a priority to enhance cross-border payments a priority and, in response to this call for action, the BIS Innovation Hub is coordinating experiments on how this might be done.

Many central banks are exploring retail central bank digital currencies (rCBDCs). The requirements for interlinking these (domestic) rCBDC systems to support cross-border payments should be considered at the outset so that cross-border payments can be enabled when appropriate.

Project Icebreaker explores a specific way to interlink rCBDC systems (the hub-and-spoke solution) with several additional features that would allow the Icebreaker model to be readily scaled up. In addition, these features would promote simplicity and interoperability, reduce settlement risk, and foster competition and transparency for cross-border rCBDC payments.

Settlement risk and speed. In the Icebreaker model, a cross-border transaction is broken up into two domestic payments, one in each domestic system. An rCBDC therefore never leaves its own domestic system. This is because foreign exchange (FX) providers buy one currency in one system and sell the other currency in the other system. Settlement is via a coordinated payment-versus-payment (PvP) arrangement using Hash Time Locked Contracts (HTLC), going a long way towards eliminating counterparty risk in the FX transaction.

Competition and transparency. FX providers submit FX rates to the Icebreaker hub, which selects the best rate to be presented to the payer for each payment request. This lets the payer access competitive FX rates independently of the PSP providing the end user with a digital rCBDC-supporting wallet. Additionally, the dependency on liquidity in the desired bilateral currency pair is mitigated by automated use of bridge currencies.

Interoperability and scalability. The number of connections between rCBDC systems are kept to a minimum by the hub-and-spoke approach. The Icebreaker hub only routes payment messages and does not act upon them. The only information it acts upon is the data from FX providers, which are used when identifying and selecting the best FX rates for the payer.

The Icebreaker model makes a minimal set of technical requirements about the rCBDC systems that connect to it. Project Icebreaker shows that central banks can have almost full autonomy when designing their domestic rCBDC system while still being able to participate in a formalised interlinking arrangement to enable cross-border payments.

https://www.bis.org/publ/othp61.pdf  

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