Central Banks are a Scam: Can You Kill Them?

Central Banks are a Scam: Can You Kill Them?

3 min read

Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, engages with Cory Klippsten, CEO of Swan Bitcoin. The focal point of their discussion centres around Argentina’s groundbreaking move of electing its inaugural Libertarian President, Javier Milei, who has claimed that central banks are a scam and pledged to close the nation’s one. In this exchange with Michelle, Klippsten delves into the prospect of Argentina embracing Bitcoin as a recognised legal tender, shedding light on Milei’s unequivocal support for the cryptocurrency. Klippsten goes on to characterise Bitcoin as the harbinger of the sixth technological revolution, elucidating its potential profound influence on global monetary policies over the next 50 years.

For a concise overview of the video’s key insights read on, or immerse yourself in the full interview here:

New Trend: Central Banks are a Scam

Michelle: We have the leader of the second biggest economy in South America, saying Central Banks are a scam and that Bitcoin is the reaction to that scam. What do you make of his comments?

Cory: This really launches this idea of Central Banking being a scam as Milei said, but at least being unfair and maybe not all that people previously understood it to be. Many people around the world don’t understand what is going on with the money printing and the Cantillon effect and that it’s the cause of inflation and credit burst cycles so I think it’s fascinating to have someone that is this fluent in Austrian economics and in libertarian principles that really understands the root of much of the much of what’s wrong in the global system today.


No Central Bank

Michelle: Is it possible to kill the Central Bank? Can you have no Central Bank and what would that look like for Argentina?

Cory: Admittedly, I am very unclear on whether the Peso can continue in any fashion with the Central Bank being dead. I have done some digging into understanding what would happen if they did try to dollarize and what everyone seems to have a consensus on is that if you dollarized you would see a dramatic, even faster fall in the value of the Peso. So, you would see a very quick 4 or 5 x essentially of the Dollar’s value versus the Peso… there’s a bit of brinkmanship and maybe a bit of a race to try to let that run before it can be blamed on Milei.


Bitcoin’s Role in Argentina’s Future

Michelle: If you’re giving up control over your currency by moving it to the Dollar, it’s probably a step closer to moving to Bitcoin. Do you see that as a first step in the path towards making Bitcoin legal tender?

Cory: The primary motivation of the current ruling class in any of these countries is to maintain the power of the printing press and so if they’ve given that up, then at that point they would be relatively indifferent as to what that other currency is as long as it serves the needs of the country.


Bitcoin as a Global Currency Standard

Michelle: How does this development with Argentina play into the narrative of Bitcoin potentially becoming some form of backing to Fiat currencies or becoming the new Bitcoin standard?

Cory: You’re still subject to all the political machinations and whims and arguing over what would be in the basket and to think about countries as diverse as the ones that are now making up the expanded BRICS, (Brazil, Russia, India and China) it would never work. Even though they’ve been around for decades talking about it, they’ve never made any headway. As far as Bitcoin, it doesn’t need to back anything. It is the currency so I think what you’ll see over the coming decades is that these countries will adopt Bitcoin as a medium of exchange and a store of value and they will actually conduct trade using Bitcoin for payment.

Don’t miss out on valuable insights as Cory delves deeper into the subject—watch the video now for more!


Stay informed with our Bi-Weekly Pulse for the latest crypto and blockchain news.

Get access to the week’s most interesting reads, stats and find out about the most recent trends in the cryptocurrency market.