Article: Much Do About Nothing
MMJ 20230626
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CENTRAL BANK DIGITAL CURRENCIES – MUCH ADO ABOUT NOTHING
Positive Money UK, a leading member of the International Movement for Monetary Reform (IMMR) is excited that Europe is about to Issue a Digital Euro and the UK is about to issue the Digital Pound. The IMMR is an international Coalition of NGOs fighting for Monetary Reforms, of which Movement for Monetary Justice / Gerakan Keadilan Monetari, Malaysia is an active member with its representative serving in the Core Group / International Board of Directors.
Money everywhere is created by private banks to the detriment of the nation and its people. Historically this injustice and hegemony have been deceitfully hidden by a fait accompli monetary system not questioned by anyone, and given a veneer of respectability by the same unquestioning ‘education system’.
Feeding the megalomaniac risk fear of private banks, money created by them are allowed to be focused on the personal sector delivering an unending and untold inflation to ordinary people, and denying the country real economic growth if the money had instead been directed to the real sector.
This is the Elephant in the room, not seen and not discussed in the Corridors of Power. Monetary Reformists watch with grieving pain the honesty of governments seeking solutions for the people, only to be advised by people, who are either agents of the hegemonists, or miseducated unable to deliver to them an honest and revealing analysis of the true picture of the national pain; and yet these are the so-called experts the government turn to again and again!
A Digital Euro is a digital version of paper note Euro to be created by the European Central Bank whilst a Digital Pound is a Digital version of paper note Pound to be created by the Bank of England. Of importance here is that these monies are created by the Central Banks, not the private banks. Hence these are not banking created money, that appear when banks give loans. Is that significant? Yes!
Instead of allowing the private banks to direct where the money is headed to, the personal sector or the real sector? The Central Banks now have the decision to direct the digital currency to the real sector.
In the world today on average 80% of money is directed to personal loans and the personal sector, creating inflation, rocketing house prices, youth and graduates' unemployment and underemployment, depressed starting and general wages and salaries, widening poverty gap.
Only 20% goes to the real sector to create employment and economic output. We ask readers to imagine what would happen to our national economy if 80% of money went to the real sector instead of to the personal sector. And we again ask the reader to imagine what would have happened to our economy if this was the ratio practiced from 1957?! (In Malaysia the ratio is 65% personal sector: 35% real sector).
Will Positive Money succeed? Will the ECB and the Bank of England heed their calls for a more humanity and nation focused realignment of the monetary system? Will these Central Banks produce more digital currencies and direct them to the real sector?
What about Malaysia? Is there talk of a Digital Ringgit that will carry the same hopes for Malaysia?
We hear there is consideration of CBDC by our Central Bank but upfront we hear clear and loud noises from them of the risks of CBDC’s /Digital Ringgit. We do not see the eagerness of creating this money, taking money creation out of private banks, and revolutionarily directing the money to the real sector.
We are not holding our breath in anticipation
There is also Project Dunbar and Project Nexus that will speed up international cross-border payments. Excellent support, but again we see the game is still deliberately kept far away from the penalty area of banks’ interests and nation’s interest, of upholding nation’s interest for once at the expense of the banks’ interest!
Nay, we are not holding our breath!
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Dikemaskini [Updated]: Sam Ahmad 20230627