Chapter 1: The Rise of Digital Currency

In recent times, China has made significant strides by introducing its currency in a digital format. The Chinese government presents several justifications for this move, primarily emphasizing cost-effectiveness and enhanced security against counterfeiting. However, the underlying motive appears to be an intensified grip on its citizens.

China's regime thrives on total control, exemplified by its ongoing lockdowns to curb COVID-19—measures that most of the world has abandoned. This level of oversight is crucial for sustaining its communist governance.

In stark contrast, the United States operates under a different system that prioritizes individual liberties. Our government possesses limited authority to infringe upon our rights, and such actions typically require lawful justification. This freedom contributes to the influx of immigrants seeking refuge here, reinforcing the U.S.'s status as a global superpower across various sectors, including the economy.

Despite these freedoms, some U.S. lawmakers advocate for the establishment of a domestic digital currency to rival China's initiative. Representative Maxine Waters (D-CA) is at the forefront of this movement.

As the chair of the influential House Committee on Financial Services, which oversees the nation’s financial operations and monitors the Federal Reserve, Waters has been vocal about the urgency of entering a "new digital assets space race" to keep pace with China’s currency strategies.

Currently, the White House and the Federal Reserve do not support this initiative. However, with rapid advancements in technology over the past few decades, the likelihood of a digital currency becoming a reality is increasingly plausible.

The shift away from cash transactions is already underway. In 2020, credit card payments overtook cash transactions, a trend driven by incentives like cash back and other rewards that make credit cards appealing.

Additionally, credit and debit cards offer a compact alternative to cash, which can be cumbersome. Nowadays, many people prefer storing cards digitally on their smartphones, allowing for seamless transactions with a simple tap.

This transition not only simplifies everyday spending but also makes the argument for a government-issued digital currency more compelling; our spending habits would remain unchanged.

However, the drawback is that such a system would grant the government insight into every transaction, a level of monitoring that is not possible with physical cash.

While government officials may claim that tracking spending is beneficial, it raises significant privacy concerns. Cash transactions can facilitate anonymous purchases, even of illicit goods, and cryptocurrencies like Bitcoin offer similar anonymity.

A state-controlled digital currency would eliminate this privacy, leading to increased governmental oversight over how we spend our money. Although many might support curtailing black market activities, this could pave the way for government overreach in regulating personal choices.

Consider the implications if the government begins to restrict purchases deemed harmful, such as sugary products, or if political changes lead to limitations on donations to specific causes.

Moreover, what if you find yourself in a legal state for marijuana, yet your non-legal state residency prevents the transaction? While these scenarios may seem exaggerated, they become feasible in a system where currency is entirely controlled and monitored by the government.

Dylan Hughes, a 25-year-old freelance writer, explores themes of self-development and his experiences as a touring manager. His writings can be found on Medium and Substack, along with two published books available on Amazon.

This video titled "Dangers of Digital Currency: Death of Freedom" delves into the implications of government control over digital currencies, emphasizing the risks to personal freedoms.

In the video "Fed's Digital Dollar is 'Scary' — All About 'Control' Over Currency, Economy," experts discuss the concerns surrounding the Federal Reserve's potential digital currency and its implications for economic control.