Stablecoins & CBDCs

Monetary Policy & Stablecoins

Director Mu made it clear in his statement that banning cryptocurrency was critical to protect Chinese Monetary Policy.

Central banks control monetary policy by controlling what currency is created and how central bank lending is done.

Stablecoins pose a real and genuine threat to that independence.

Stablecoins are private coins and they are not controlled by central banks. But the value of these coins is pegged to fiat money. 

This means actual currency supply is no longer controlled by the central banks. This loss of control has fuelled the race to bring into finance the CBDC.





“We live in an increasingly digitalised world where the way we make payments and use money is changing rapidly. The prospect of stablecoins as a means of payment and the emerging propositions of CBDC have generated a host of issues that central banks, governments, and society as a whole, need to carefully consider and address.”  Governor BoE   


Satoshi Nakamoto & CBDCs

“the private sector nature of stablecoins raises risks to monetary policy transmission and may threaten the effectiveness of the central bank’s lender of last resort function.BIS

Bitcoin and Impact

In 2008, an email appeared in a mailing list entitled – Bitcoin P2P e-cash Paper – it was the now famous bitcoin whitepaper. 

Although bitcoin could never have worked it’s invention did have one consequence – to change the entire world’s financial system.

This change was not via cryptocurrency or bitcoin, but enabling stablecoins – coins based on blockchains which are pegged to fiat values. 

Stablecoins directly threatened central banks and prompted them to move into action. The action was to invent a new term – CBDC – which proprogated globally reaching every central bank.

Today in 2021, the entire world system is on the brink of a change not seen since the 1600s in terms of scale. 

It seems clear that the actual design of bitcoin was to cause CBDCs (not by name but by design) and with it a complete digitization of currency; and complete globalization of financial services at a level never seen before – low-cost, instant, and universally accessible.

Satoshi Nakamoto was never identified and it is likely the name referred to a team in a government agency whose purpose was to cause CBDCs. speculates it could have been the NSA.