In March 2022, President Biden signed an Executive Order directing government agencies to urgently research and develop a potential US central bank digital currency (CBDC) “in a manner that protects Americans’ interests.” It also encouraged the Federal Reserve Bank to continue doing so. And it isn’t just the Biden Administration in the United States working in such a direction.
As of the time of writing, CBDCTracker.org lists three countries or regions with retail CBDCs already “launched” (Bahamas, Jamaica and Nigeria), another five in “pilot” stage, and another twenty in “proof of concept” stage. Many more have at least researched wholesale CBDCs. (“Wholesale” CBDCs are intended for commercial and central bank use and the like, while “retail” CBDCs are intended for the rest of us). A report by the Bank for International Settlements (BIS) released just this month summarizes the results of a survey of 86 central banks and concludes that “there could be 15 retail and nine wholesale CBDCs publicly circulating in 2030.”
When you read statements from high-level officials of the BIS, central banks, and governments, you get the impression that CBDCs are an exciting development in the evolution of money. The BIS, for example, calls them “a new tool in the financial inclusion toolkit.” An op-ed co-authored by BIS General Manager Agustín Carstens and Queen Máxima of the Netherlands frames them in the title as “CBDCs for the people.” An IMF working paper asserts that CBDCs can “bank large unbanked populations” in developing countries.
Unpopular and risky
But when a CBDC was thrust upon the Nigerian people, adoption rates were abysmal at best (below 0.5 percent even a year after its launch), and Nigerians took to the streets to demand access to cash. CBDCs are widely unpopular in the United States as well. A CATO Institute national survey published just in May found that only 16 percent of Americans support the idea, and over twice as many (34 percent) oppose it. 78 percent responded that if a CBDC were offered, they would be unlikely to use it altogether. As for partisanship, while Democrats were twice as likely to support a CBDC than Republicans (22 percent for Democrats, 11 percent for Republicans), just as many Democrats oppose it, and the remaining 56 percent respond that they “don’t know.”
Risks CBDCs present include the loss of settlement finality that comes with physical cash (as abandoning cash accompanies the push for CBDCs), loss of financial privacy, easy seizure of assets, loss of the ability to resolve problems at a local level with a commercial bank (as it would be doubtful that a central bank would come to be known for its customer service), outright prohibition on spending or purchase limits with certain merchants or on certain products, and (perhaps most importantly) the paradigm shift from money as an exercise of economic freedom to one of social engineering by central banks and their respective governments. The latter could manifest itself in various ways, including (to name just a few) negative interest rates (essentially a confiscation of one’s savings), the expiry of one’s money (with a date determined by the issuing central bank or its government) — or even discouraging the consumption of products like gasoline, plane tickets or red meat in order to enforce a climate agenda.
Another CATO resource dedicated to identifying the risks of CBDCs rightly points out that a CBDC could reduce credit availability, disintermediate banks, and challenge the rise of cryptocurrencies. And all this is to say nothing of how businesses operating legally under state law would be treated by central banks when those very same economic activities are illegal under federal law. Even at present (with no CBDC yet launched in the United States), businesses working in the cannabis industry struggle to obtain and maintain bank accounts as many of the commercial banks are federally regulated. Are we really supposed to believe that the Federal Reserve would be more accommodating for cannabis businesses? It is difficult to imagine how CBDCs would not radically undermine federalism.
Finally, the increased surveillance also has a chilling effect on the public – even for legal activities. Enjoy vice (gambling, pornography)? Want to buy a gun? Now maybe you avoid living your life as you presently do.
Hardly inclusive
A quick trip down memory lane demonstrates how the debanking of legally-operating banked businesses in action has historically manifested. An Obama-era Justice Department operation called ‘Operation Choke Point’ targeted gun retailers, payday lenders, and the like beginning in 2013 not by charging the employees or owners of those businesses with actual crimes, but by upping the cost for banks to provide banking services to them, reminding those banks of their obligations under the Bank Secrecy Act and anti-money laundering (BSA/AML) regulations and the penalties for non-compliance. The result was (not surprisingly) the debanking of banked people and companies.
More recently, crypto has entered into the crosshairs, with regulators shutting down commercial banks that provide financial services to crypto companies. This latter operation was appropriately coined ‘Operation Choke Point 2.0’ by Nic Carter who draws parallels to the first operation.
The timing of a global CBDC initiative is also suspicious given the present cultural and political climate of “canceling” people with dissenting opinions and of Big Tech’s alignment with government to orchestrate something that resembles more of a PsyOp than “public health” as we have traditionally known it (as evidence from a FOIA request revealed).
Even if you think that a CBDC is a good idea, consider that its power may be turned against you when the political pendulum shifts in your direction and your views or activities are suddenly considered taboo or illegal by those in power. Real financial inclusion requires an economic system where financial censorship is harder to accomplish in the first place. (Paper cash and Bitcoin help here).
Oh, and by the way, the BIS itself calls physical cash “the most inclusive form of money we currently have.” With all the talk of financial inclusion, the global push to phase it out is, well, ironic. SEC Chair Gary Gensler was right when he declared that “we already have digital currency. It’s called the US dollar.” We can address the many shortcomings of the traditional financial system without introducing another digital dollar in the form of a CBDC.
The vast power that a CBDC would place in the hands of a nation state or its central bank points in the direction of an unprecedented level of financial surveillance, censorship, and potentially debanking the banked whenever it may serve certain political objectives. Thus, it is hardly an understatement to say that we are at a crossroads for civilization.
We would also be wise to consider the words of FA Hayek, from The Road to Serfdom:
Economic control is not merely control of a sector of human life which can be separated from the rest; it is the control of the means for all our ends. And whoever has sole control of the means must also determine which ends are to be served, which values are to be rated higher and which lower—in short, what men should believe and strive for.
About the Author
Emile writes on matters of money and cryptocurrency and has spent well over a decade working in international business development around the world. He holds a Master’s (double degree) in Economics from OMMA Business School Madrid and from Universidad Francisco Marroquín as well as an MA in Political Science from the University of Arkansas.
He is from the USA but has also lived in Japan, New Zealand, and (now) Brazil.
Article cross-posted from AIER.
Bypass Big Tech Censors
Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
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In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.