The End of Physical Currency: which Digitial Currency do you choose? Theirs or Ours?

The neat thing about blogging is that you can basically timestamp your prediction and come back to it in a year, two or even five and see how your prediction turned out.

This week we received two announcements, one from Europe and one from America that the physical currency spending limits for all citizens are being lowered to an amount so low that buying almost anything these days will be required by law to be reported to a separate department in the government.

For example, if you buy a used sailboat for $5,000, and transfer the money to the seller’s bank account, you (or your bank) will have to report that transaction to what basically amounts to the NSA of the IRS in order to confirm that the transaction is legitimate.

According to the Economic Collapse Blog:

  • In France, starting September 2015 cash transactions above Euro 1,000 are prohibited, and currency exchanges without requiring proof-of-identity are reduced from Euro 8,000 to Euro 1,000. Further, cash deposits or withdrawals from your bank account above Euro 10,000 will be reported to the French “Anti-Fraud and Anti-Money Laundering” Agency Tracfin.
  • French Finance Minister Michel Sapin brazenly stated  that it was necessary to “fight against the use of cash and anonymity in the French economy.
  • In Spain, cash transaction limits are already Euro 2,500, and in Italy, Euro 1,000.

In America, if you regularly deposit large amounts of cash, say for example you own a used-car dealership where many customers prefer to purchase a vehicle in cash, then you may need to fill out a “Suspicious Activity Report”. They say only suspicious transactions need be reported, but then they say “there are minimum quotas for suspicious activity reports that banks must meet.  If they do not submit enough suspicious activity reports, they can be fined (or worse). So why not stuff the quota with a few Mom & Pop small business transactions as well?”

Just this kind of scenario happened with one unlucky person in Iowa:

“A widow’s bank account was seized by the IRS and she now faces criminal charges for depositing her legal inheritance money in lumps instead of all together.

Janet Malone, 68, had $18,775 seized from her — money that was legally earned and was legally bestowed to her by her late husband, Ronald Malone. The problem, according to the government, was the fact that she deposited it in several lumps instead of all at once.

According to the Associated Press, Mrs. Malone deposited the cash in increments between $5,800 and $9,000. The widow’s private financial affairs evidently set off red flags under the watchful gaze of the federal government.”

So why would governments be increasingly limiting use of their own currency?

  1. Capital flight controls: they don’t want their currency “heading for the exists” or circulating faster than better currencies.
  2. Citizen espionage: All these government employees need reasons to keep their job, what better one than to spy not just on everyone as a whole like they have been, but on every single one of us.
  3. Traceable currency: Trying to control a currency through interest rates is so 1800s; they want to be able to do a little bit more. Monetary competition between countries is getting more fierce as they are dragged towards a US Dollar-led monetary collapse. They want to be able to take stern measures if needed, and a traceable currency is the only way to be able to do this.

In short, governments are taking us towards a single currency in which all citizens and transactions are identifiable and traceable.

And we can be sure they are working to implement their own Digital Currency. In fact, some people say they should, including “James Angel, a professor of economics at Georgetown University. He thinks the government should create what he calls “bitdollar,” a bitcoin-like digital currency that’s backed by the US dollar.”

“The world’s governments already are looking for ways to regulate bitcoin. And the Canadian government has explored its very own digital currency, MintChip, which is something akin to Angel’s proposal.”

There is even more interesting and pointed information in this Bitcoin Magazine article which confirms that governments are working towards implementing a fiat digital currency. Ecuador already has one, the Philippines are now considering it.

Our options are to continue using cash for as many kinds of transactions as we can, and to use peer-to-peer currencies like Bitcoin, Ripple, and others that are not easily traceable by government agents whose job it is to track every single one of us.

I’ll be checking back on this article to see how things have progressed, but in the meantime, get educated about Digital Currencies, get your own wallet, and convert some of that increasingly worthless paper for some of our money.