Digital Dollars Equate To A National Bank
As bad as the banking sector is, it does serve a purpose. It is a go-between for people from the government. This provides great protection from the changing whims of politicians and, worse, bureaucrats.
The recent economic crisis has spurred even more countries to talk about digital currencies. In the United States, both Republicans and Democrats have offered this idea up as an option.
While blockchain does provide many benefits and cryptocurrency will allow for faster distribution to individuals, there is much greater downside. Sadly, the risks outweigh the rewards.
Banks are the classic definition of "middleman". They are the layer between our accounts and government. So, while it is a great idea to have restaurant owners get their money immediately in this time of crisis, there is a darker side to it all.
Any entity that gives can also take.
What happens when politics takes over? People do not think this a bad idea when their party is in power. Yet, a switch in party and they scream how unfair it is.
Imagine your competitor being politically connected and getting money sent directly into its bank account. Or how about you having transactions blocked if you are not aligned with the party in charge?
Do not believe it will happen?
Look at the cannabis industry or the sex workers plight. They were basically booted out of the banking system by the Feds. At least in those instances, it took a major move by Congress to get it through.
Of course, right now, people can always use cash. This will be removed from the equation. Essentially, these entities are out of business.
What happens if the Democrats decided to do that to gun shop owners? How about the other side taking it out on environmental groups?
Do you really want that much power in the hands of politicians?
An even scarier thought is the people at the DMV having control over all your money. Would you feel comfortable with a bunch of government bureaucrats having the ability to basically crush your account without any reason or explanation?
At least with the present banking system, there is the chance that you might get somewhere by threatening to take your business elsewhere.
None of this would exist with the national bank. Government would be able to go in and take what it is owed in taxes. All fees will be instantly deducted. Any mistakes, good luck getting them cleared up. Look at what people are going through just trying to get their unemployment checks.
Things are bad but they can get a whole lot worse. All proposals for a national bank need to be rejected. Politicians, bureaucrats, and everyone else related to government have shown themselves incapable of acting on behalf of individuals under their control.
For this reason, all efforts need to be taken to decentralize as much as possible. This virus is seeing an enormous power reach, one that is unprecedented.
Failure to do so will only put more power in the hands of the people who have exhibited the tendency to abuse that power.