The Bank of International Settlements (BIS) has just announced its new CBDC project, Project Icebreaker, which aims to provide a solution to the problem of expensive and slow cross-border payments. However, some critics argue that this new system could lead to a dystopian nightmare of central control and loss of freedom.
In this blog post, we will analyze the inner workings of Project Icebreaker and provide a three-step guide to understanding its implications. We'll also provide tips on how to protect your freedom, liberty, and privacy against potential threats posed by this new system.
Understanding the Current System
To understand how Project Icebreaker will work, we need to first understand how the current system operates. Currently, sending money across borders is slow and expensive due to the involvement of multiple intermediaries. This increases the complexity, time, and cost of transactions.
The Problem and the Current Free Market Solution
The current system is slow and expensive, which has led to the development of a free-market solution called correspondent banking. This involves multiple networks connected by individual banks. However, this system is still slow, expensive, and involves significant counterparty risk.
The Central Planners Solution
Project Icebreaker aims to provide a solution to these problems by creating a centralized network controlled by central banks. Instead of having individual accounts with different banks, individuals would have a direct account with their local central bank. The central bank would then transfer the liability to another central bank using a settlement asset known as SDRs (Special Drawing Rights).
However, this system could lead to loss of privacy and freedom. The central planners would have access to all transaction data, which could be used to control citizens' financial behavior. Moreover, this system is still denominated in the local currency and is not a new currency.
Tips for Protecting Your Freedom, Liberty, and Privacy
The good news is that a central bank digital currency is currently illegal in the United States, and the Federal Reserve cannot do business with individuals. This means that they cannot set up the framework for a central bank digital currency. However, citizens should remain vigilant to ensure that central planners do not change or break the law.
Furthermore, a decentralized approach using free-market capitalism could provide a better solution to the problem of expensive and slow cross-border payments. By coming together with like-minded individuals, citizens can protect their freedom, liberty, and privacy from potential threats posed by central planners and authoritarians.
In conclusion, Project Icebreaker is an ambitious project that aims to provide a solution to the problem of expensive and slow cross-border payments. However, it is important to remain vigilant and ensure that central planners do not erode citizens' freedom, liberty, and privacy. A decentralized approach using free-market capitalism could provide a better solution in the long run.