U.S. to make a ‘FedCoin’ they Control and Force Us to Use It?

How will the dynamic play out? He speculates… “To start with, I suspect it’s going to be a parallel currency. Perhaps usable just within the U.S. which, in effect, would be a form of foreign exchange controls even more effective than the inability of Americans to open up foreign bank and brokerage accounts today [due to monetary control through FATCA]…I think it’s a near certainty that they’re going to do something like this and soon.”

Fedcoin refers to cryptocurrency and/or protocol established by a central bank. National banks could forge their own ‘bitcoin’ with comparative ease and bitcoin consultants have sketched possible scenarios on how.

In “Some Thoughts on Fedcoin – a Fed backed cryptocurrency” (March 9, 2015),  Albert Szmigielski suggests, “[T]he Fed would premine all the currency that they want to issue on a blockchain….A premine happens where all (or part of) the cryptocurrency is issued in the first block, the genesis block. Then the Fed would just exchange the fedcoin for a dollar each.”…..

One user—the Fed—would get special authority to create and destroy ledger entries….

…“Bank of England: Why might central banks issue digital currencies?”

In America, similar scenarios occur. In June 2016, central bankers from 90-some countries met behind closed doors in Washington D.C. and conferred with bitcoin experts. Federal Reserve Chair Janet Yellen opened the conference, which included the International Monetary Fund, the World Bank and Bank for International Settlements.