In this interview, we reconnect with George Gammon, a seasoned investor and leading authority in macroeconomics, as he engages in another compelling discussion about CBDC in U.S. with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
George aligns with recent bank reports speculating the emergence of an Orwellian-esque Central Bank Digital Currency (CBDC) within the next three to five years, contingent on the nature of the impending crisis. During the conversation, George cautions against the perils associated with a CBDC, raising concerns about the possibility of its clandestine introduction in the United States. He also delves into his rationale for anticipating de-dollarization and explores the potential scenarios reminiscent of the 1970s.
Continue reading for a summary of the video or watch it in full here:
Michelle: Give us a broad overview of what is a CBDC before we get into the specifics.
George: Many mistakenly believe that the introduction of a CBDC implies an immediate replacement of the existing currency, as if a switch from the dollar to a new “fedcoin” is imminent. This is a misunderstanding. A CBDC is essentially a digital version of the existing national currency, such as the dollar. While most dollars are already digital, the key distinction lies in the liability. Instead of being associated with a commercial bank like Wells Fargo, the digital dollar becomes a liability of the central bank, in this case, the Federal Reserve.
Michelle: A new report (Wells Fargo) says it will be 3 – 5 years before a U.S. CBDC is designed, approved, and used. Is that a realistic timeline?
George: Yes, I think so. It all depends on the next crisis. We know one thing for sure: the central planners and the authoritarians will never let a crisis go to waste, so if you told me we’re not going to have another crisis between now and the next 5 years I would peg that at… I’ll call it a 50/50 probability. If you tell me that the yield curve is correct, that would imply that we’re going to have a hard landing most likely in 2024, then I would up that to 3 years and I’d up my probability to 75%.
Michelle: Is there validity to the case that the U.S. can’t be left behind if everybody else comes on board?
George: If I had to make an argument for that I could, but in reality I think it’s nonsense that just shows a misunderstanding of the global monetary system as it is right now. The dollar, existing as both a domestic currency and a global reserve currency, operates digitally through the euro dollar system, facilitated by a network of shadow banks. The idea of a digital currency replacing the dollar is deemed unfounded. However, it could be argued that a central bank digital currency would enable other countries’ central banks to issue credit at nearly 0% interest rates, presenting a competitive advantage against the dollar and potentially reshaping the global financial landscape.
Michelle: Explain the idea of tokenized assets on a ledger, on an open blockchain, and how everything will become tokenized.
George: Maybe not everything… at the end of the day, I think there is an above zero probability that gold will not be, and that Bitcoin will not be. I’m here at a Gold conference and I talk about the dollar not crashing, all these things, but that doesn’t mean that I’m not a huge fan of gold or Bitcoin. I’m a huge fan of it not because I think the dollar is going to crash or going to hyperinflation, but I think even more importantly it’s to have purchasing power outside of this insane system that we’re referring to. Here’s an example of what most people can relate to….
Watch the video now and find out more from George as he delves deeper into the subject. Don’t miss it!
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