CBDCs vs. Crypto

Altucher Confidential presents... [Altucher Confidential] July 14, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Two words: credible neutrality. [Hero_Image] CBDCs vs. Crypto By: Chris Campbell A $608 credit has been applied to your account. [Please click here to learn how to claim it.]( — Customer Service, Paradigm Press [Chris Campbell] CHRIS CAMPBELL Dear Reader, CBDCs are coming, sure. In a way they’re already here. Circle’s crypto stablecoin USDC -- launched on the Ethereum blockchain -- is a CBDC-lite. With it, Circle can: → Freeze assets → Create new coins → Take money out of accounts Similarly… Brazil is creating a pilot CBDC -- the Real Digital -- on a Ethereum-compatible blockchain. With it, Brazil will have the ability to: → Freeze assets → Create unlimited new coins → Take money out of accounts But, here’s the thing… The Big Difference Although these two projects are built on public crypto blockchains… A CBDC isn’t “crypto.” There are big, fundamental differences. The biggest difference is what’s called “credible neutrality.” Credible neutrality is a term that's often used in the context of blockchain and cryptocurrency projects, but it can apply in a broader context as well. In the public sector, credible neutrality is crucial to maintain institutional trust. From distribution of resources to the enforcement of laws, the entire system relies on credible neutrality. When these systems are credibly neutral, it means they operate in a way that is fair and impartial, regardless of an individual's status or influence. Decentralized public blockchains are the first global networks that have provable credible neutrality. Anyone can audit the blockchain and see that it operated in a neutral way. Not only does no central entity control the network, it has the added benefit of making the network resilient to single points of failure. It also means no single entity controls the supply of the underlying asset… or who holds that asset. (Alongside emergency savings, data backup, and regular health check-ups, this is one of those things that doesn’t seem important until you need it. Then, it’s too late.) Urgent From James Altucher! Hey, it’s James Altucher. I just announced a massive new change to Altucher’s Investment Network, and as one of my readers I wanted to make sure you know what’s going on. [Click here now to see my urgent announcement.]( The Multipolar World CBDCs, by their nature, don’t have credible neutrality. So there’s the constant danger of falling into a multipolar trap -- an ultimately self-destructive cycle where nations are continuously escalating their efforts to outdo one another. (AKA, Cold War.) As the world inevitably becomes more multipolar, the need for neutral, trustworthy systems like public blockchains may very well increase. After all… Cryptocurrencies are designed to resist control by any one entity, making them attractive in a world where many different entities may attempt to assert control over financial systems. In this way, crypto could act as a safety valve, providing individuals insulation from any particular nation’s monetary policies. (In places with high near-triple digit inflation rates -- Venezuela, Argentina, and Turkey -- Bitcoin has been a boon.) Moreover, it can help level the playing field for smaller nations, helping to reduce their dependence, attract investment, deal with inflation, and gain more self-sufficiency. If traditional financial systems are perceived as being controlled by certain entities and not neutrally benefiting all participants, this could drive more people towards the neutrality of cryptocurrencies. There’s also… A Matter of Security It remains to be seen if centralized CBDCs will be immune to hacks. Most cryptocurrencies are open source, which means that developers around the world can examine their code for bugs or vulnerabilities and suggest improvements. This constant, global scrutiny and testing, combined with the ability to adapt the code over time, contributes to their resiliency. Most CBDCs will be less transparent than Brazil’s Real Digital pilot. These are all reasons to be bullish on certain (not all) cryptocurrencies. Although our colleague Jim Rickards might disagree on these points, there’s one thing we both agree on: CBDCs are far from ideal as the de facto future of money. On Monday, Jim will outline exactly why. And why they’re coming. Before we go there, though… An invitation from Jim just slid past our desks. We thought you should see it first. The Prophecy Came True Over a decade ago, Jim predicted that currency wars were coming. Behind closed doors, he briefed top officials from the DOD and the CIA. Publicly, he said: “Sequential bouts of inflation, recession, retaliation and actual violence as the scramble for resources leads to invasion and war...” From Putin’s war in Ukraine, to the rise of the BRICs system designed to challenge the U.S dollar… Things are playing out pretty close to what he predicted in his book Currency Wars. Now, he’s ready to release his predictions for the next decade. But this time, it’s not behind closed doors at the Pentagon. It’s open to our readers. And you’re invited. There’s just one catch: You must fill out a clearance form before attending. Just click the link below to register, and answer three questions on the next page. [Click here to register for the event and be taken to the Clearance Form on the following page.]( Clicking the link above automatically registers you for Jim’s Urgent Pentagon City Announcement, but does not obligate you in any way to attend the event. By reserving your spot, you will receive event updates. We will not share your email address with anyone. And you can opt out at any time. [Privacy Policy.]( Until next time, [Chris Campbell] Chris Campbell For Altucher Confidential Governors warn of “Biden Blackouts” [James Altucher]( A former advisor to the CIA and Pentagon just made this dark prediction: Calamity Joe’s sabotage of the Nord Stream pipeline [His Evidence Here]( was suicide. In the next 75 days, Americans will face fuel shortages… …widespread BLACKOUTS… …empty grocery shelves… …up to $1000 energy bills… …drained retirement accounts, and… …a massive crime wave. [>>Welcome to Biden’s American Energy Armageddon<<]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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