March 9, 2022, 11:04 am EST
Central Bank Digital Currency
Stock markets made a big jump today with Dow Jones +600 points gains and Nasdaq +3% advances today. One potential reason could be the following news:
President Joe Biden on Wednesday will officially sign an executive order directing agencies to study cryptocurrencies and a central bank digital currency (CBDC), and come up with a government-wide approach to regulating digital assets.
Bitcoin spikes up +10% to 42,415 and Ethereum, XRP up about +7% as of now.
The next step could be a digital version of the US dollar. US government follows the same path as China is doing now. The major benefit of using digital currency to replace paper currency is that governments can fully control and track how individuals use the money. We could see how China is quickly taking this approach so that each individual would be limited from buying train or airline tickets, food, or any items. This is also an effective way for the government to allocate limited resources like food or certain commodities.
Since Biden took office in 2021, oil prices have been more than doubled because of his policies. Then, hyperinflation quickly spreads to other areas for a 40-year high inflation data. Recently, economic sanctions on Russia also hurt US people by watching the gasoline price to another high level. Lastly, this CBDC executive order will be another action to expand government power. In our opinion, the US is going in the wrong direction for its citizens.