Crypto May Downright Change the Face of Banking
That’s Why the American Banker’s Association Is So Against It
The Central African Republic has just launched a CBDC, a central bank digital currency. They call it the Sango coin. It and bitcoin are now recognized cryptocurrencies in the country.
Meanwhile, the Treasury Department here at home has issued a press release calling on the United States and its foreign allies to work together to create standards for crypto regulation. The notice said the U.S. must be a leader in the discussions on CBDCs and digital payment programs and the Bank for International Settlements (it's not really a bank. It's really an association of all of the world's central banks, like our Federal Reserve).
They just created an innovation hub, their first project, a cryptocurrency platform. Clearly on a global scale, crypto is becoming mainstream. And we're going to see countries all around the world launching their own central bank digital currencies. It's expected by the end of the decade, virtually every country in the world will have one. Our own Federal Reserve is hard at work on one, and everybody seems to acknowledge it as a given and frankly, with a lot of good reasons for it.
But there's one organization that doesn't like the idea, the American Bankers Association. They've written a letter to the Commerce Department opposing the idea of a US CBDC. They wrote, "The issuance of a CBDC, a central bank digital currency, would fundamentally rewire our banking and financial system".
Well. Duh. A CBDC threatens commercial banks. That's why the American Bankers Association doesn't like the idea. This kind of reminds me of way back 100 years ago when the National Association of Horse and Buggy Manufacturers opposed the invention of the automobile. I made that up. There's no such thing as a National Association of Horse and Buggy Manufacturer. But if there was, they clearly would have opposed the Model T because it was an existential threat to the horse and buggy business.
And crypto is an existential threat to the banking system. Why should anybody other than bankers care? I mean, you really love your bank. You love the limited hours, lousy service, and high fees. I don't think so. Crypto does an end run around all of that and they have a right to be trying to squash the competition. And guess what? They're going to fail, just like those buggy manufacturers failed.