The US and almost all countries are moving towards the implementation of digital currencies. With this comes concerns related to privacy and government and political overreach and discrimination.
The below discussion with George Gammon addresses concerns about the government dictating who can get loans and at what rates.
Just imagine the next time you go to get a mortgage for your home. You wouldn’t go down to your local Wells Fargo branch, you would go directly to Jerome Powell. Right, and they would determine whether or not you get that loan and what the interest rate would be and therefore they can control the amount of dollars in the system.
Another reason this is so important for people to understand is right now the amount of lending in the system is constrained by the amount of individuals or entities in the system that can actually pay back the loans. Right, commercial banks are constrained by a profit and loss. The FED is not contained by a profit and loss. So they wouldn’t have to use a credit score, as an example, to determine who gets a loan and who doesn’t get a loan and at what interest rate. They could use a social score like we’re kind of seeing in China.
Similar actions could take place with groups being discriminated against. Imagine if a governor in a state approves a bill that he or she believes will help their state but the bill conflicts with what the federal government wants. Those controlling currency could penalize members of that state in reaction to the bill being passed.
This is an excellent video discussing the possibilities and concerns with a future with digital currencies.