three round gold-colored coins on 100 US dollar banknotes

CRYPTO CURRENCY VS DIGITAL DOLLAR

CRYPTO CURRENCY VS DIGITAL DOLLAR

Banking adopting “Digital” currency.

While listening to one of the YouTube channels I follow, the speaker mentioned how multiple banks were totally against Crypto, how bad it is, and it needed to be banned. He then stated these same banks now think, maybe crypto isn’t bad after all. Now, they are creating their version of Crypto Currency which would be “digital dollars. The speaker further stated, “they don’t get it!”

What does this speaker mean by his statement: “they don’t get it!”

I was first introduced to Crypto Currency and Bitcoin a number of years ago. We, here at COMPUMATRIX were introduced by our founder Henry Banayat to not only Crypto Currency but also to the concept of Decentralization. This is the “piece” others do not get. This is what the speaker was referencing.

In her blog Crypto Currency and/or Paper Money, Inga Molin writes: “My mission will be to create noise in my country! A noise that gets people and businesses interested in connecting with me and starting their own business.”

CRYPTO CURRENCY VS DIGITAL DOLLAR

During the 2008 market crash, failing banks and financial corporations were bailed out of their financial struggles by the Government to the tune of 100’s of $$Billions$$ of dollars. The financial games finally caught up and it was a devastating nightmare. This was due to the system the financial markets run on. 

After the crisis, nothing was changed and a precedent was set: “The Bigger You Are, You Can’t be Allowed to FAIL”. Here we are in 2020 and bail out as well as stimulus have been utilized to protect the economy. The problem however, still remains the same! The banking system is a CENTRALIZED system and the banks do not wish to lose control.

 As the true issues show the weaknesses of our current banking system, banks are having a difficult time maintaining their financial system. Out of the ashes of the 2008 market crash came an alternative. This is called BITCOIN AND BLOCKCHAIN. This was introduced as a White Paper late 2008 and into 2009, it was running on computers all over. 

When it began gaining popularity, it was met with negativity from the financial community. It went through the phases of denial to acceptance. Not to be outdone, the banks began plans to host trading and now they have started announcing plans of developing their own Crypto Currency that I will refer to as the Digital Dollar. (There are several proposals from various institutions.) 

The banks thought they could shut down the trending toward Crypto Currencies with their negative campaigns. When this didn’t work, they sought out means to reproduce it in their system and therefore control. They stated their desire to embrace Blochchain but they still did not want Bitcoin. They are striving headfirst in their quest to provide THE DIGITAL DOLLAR. 

Again, we address the meaning of what this YouTube speaker meant by his statement: “they don’t get it!” The fundamental aspect of Bitcoin and the Blockchain is it runs on a DECENTRALIZED format. By this, I am referring to the fact the Blockchain runs on thousands and thousands of computers throughout the World. There is NO CENTRALIZED AUTHORITY. 

The DIGITAL DOLLAR concept is run under a CENTRALIZED AUTHORITY. This means it has a point of reference that can be accessed (therefore manipulated). With Bitcoin and the Blockchain system of DECENTRALIZATION, it can not be manipulated and therefore it can not be corrupted. The banking system has systematically destroyed themselves through tremendous greed.

The Banking system is only trying to change horses but THEY ARE IN THE SAME RACE.

About the author

Stephen Sampson is among the founding members of the Compumatrix Bloggers' Network and writes various topics about life and business.

Comments

  1. The ‘system’ of banks and economists worldwide are desperately trying to find a way to continue controlling or ‘centralizing’ us. I think this attempt at creating the CryptoDollar is their way of getting into the race and once there trying to force everyone to use it and demonizing all other cryptocurriencies. I really wish I did not think this way, but all the disappointments throughout the years being controlled by these evil, greedy people make me store this as a buffer against the ‘just maybe’ it happens again.

    1. “They don’t get it!” Yes, lots of people won’t get it or understand cryptocurrency, but I honestly believe the banks get it!!! They get that they are loosing control of the financial community and the people within, so they are jumping on the bank wagon with their version called Crypto Dollar to keep their profits and control and continue to be able to pull the wool over their customers’ eyes. This time though people are becoming much wiser.

  2. My belief is that the digital dollar is less about the potential of BTC and other cryptos to unseat the dollar and other fiat currencies, and more about the elimination of CASH money. They will have a much easier time tracking all transactions and making sure everyone is playing by their rules, they will also have a much easier time freezing and seizing dollar assets. Pushing a button to take someones funds, justified or not, is much easier than going to their house and taking all of their cash money. A digital dollar does this by eliminating untracable paper. If all USD is digitized that then makes operating outside of the tax man much more difficult. This concept of digitizing all currency has been around, I believe since JFK. There were concepts for nationally issued debit cards in lieu of cash.

  3. Jaime Dimon, you figure that out on your own? You guys got it “head on”.

    First they laugh at you…. When all the games don’t work, they say: “I don’t like Bitcoin but we can use Blockchain…..” There are levels of acceptance but big banking has been very creative. The purpose of the Digital Dollar is to make people think they are mimicking Crypto when indeed THEY ARE NOT! THEY ARE TRYING TO MAINTAIN “CENTRAL” CONTROL.

  4. A statement goes by, if you cannot beat them, join them, the ways the banks are using, the challenges they are facing it’s making them be creative.we are on the right path and we will see much to come.

  5. Banks are running scared because they know they are losing control. I advise everyone I know to have some crypto in their portfolio so there is something ti use should the freezing or seizing happen to them.
    Bitcoin was brought into play because of the 2008 crash. Many years in the making before but the 2008 debacle was what put the icing on the cake for it to become a reality. The consortium known as Satoshi Nakimoto recognized it was time for the people to take their money back.

    A digital dollar is nothing different than what you are using right now – MOST currencies are in digtal format in the form of a blip on a computer screen at your bank. Used via debit cards and bank transfers. Paypal is a digital dollar. All of which can disappear at a moments notice. Say something against the government agenda – lose your money.. Decide that a vaccine isn’t for you – lose your money. Seems out of this world, but it will start to happen.

    Get out of the centralized money networks and go full blown DEcentralized. It’s time we all did this.

  6. Cryptocurrency is not visible to the eye, but loved by many. It has made unbelievable strides into many housefolds and looked upon as a savior.
    Digital dollar, visible fiat currency, currently used by many, but no more love left between the currency and people who are presently using it. Shades of fading into oblivion seems to be not a distant possiblity.
    Crypto verses Digital dollar will be an interesting episode to watch.

  7. The dollar and many other currencies lost its power when it was talen off the Gold standard and became to be known as fiat money . Central Banks became its creators allowing themselves to print as much and when ever they wanted money bills , a Centralized system.
    Satoshi introduces a new paradigm of money or value which is not manipulatrd by any central power ,for its decentralized and limited.
    Banks hate this for it can not be shutdown

  8. awesome read and great info here — when you take power away from places they tend to try and make the power come back to them and they will do and say whatever they think to get that power back — as in politics and business — the egos of so many get in the way — but if we can decentralize and keep power and money away then we have a probability of success here and around the spinning globe —

  9. Great article. It shoes hoe the billionaires are not in to sharing and want to hold on to everything. When they see something typical folks and not the filthy rich can use beneficial to them they wish to make it look unappealing to average folks. The rich trying to get richer and hold everyone else back. With our business, which is crypto based, will with this situation.

  10. The Digital Dollar defeats the purpose of Crypto Currency. I think Crypto Currency compared to the digital dollar is like comparing a cat to a dog – they are completely different. Crypto Currency is decentralized; the Digital Dollar is centralized and can be inflated indefinitely. Because of Covid-19, I think the Digital Dollar could be very useful so that America can go to paperless (digital) transactions for a more sanitary world. Crypto Currency is in it’s own league.

    1. Decentralization is one of my favorite aspects of BTC. The second is the deflationary aspect and finite numbers which cater to the supply and demand theory. So both concepts, decentralization and finite supply I feel will be the biggest attributes to BTC’s long-term success and hopefully mass adoption! For the short term if we can get out of this sideways trading pattern and cross the psychological threshold of 10k BTC; we may begin to see a major up tick in major media. This hopefully will exacerbate the rise to a new all time high!!

  11. as you go back thru history and study different time periods you also see many forms and types of currency and with the advent of the internet and computer applications over the globe the forms are still evolving and not all will be successful but I do believe that in this time and crypto area Bitcoin is durable and I believe will be useable and spendable as time over next 20 years plays out ?? maybe

  12. I keep seeing that Bitcoin and a few others in the arena are very viable alternatives to the current banking and money manipulations being exercised globally after this global virus was introduced for reasons — but total control world happenings and power are at its core imho — but I sincerely think with the internets ability to keep Free because of the incredible speed and invisibility of where and who — I really like the crypto over dollar part — but time will tell and over next few years this may be answered ?? will see great reading — thanks

  13. I vividly recall Jamie Dimon, CEO of JP Morgan Chase, actively bashing Bitcoin publically for more than a year, starting in 2017, calling it a fraud. Plenty of his negative statements were published and that seemed to result in the price of Bitcoin dropping significantly. I also recall reading elsewhere that one of his companies capitalized on the new low price with huge purchases of Bitcoin.

    Today I searched on my secure DuckDuckGo search engine and saw that in 2019 JP Morgan announced that they are launching their very own digital JPM Coin. It is valued at 1 USD and backed by USD held in their accounts. LOL, that’s a centralized coin controlled by their bank!

    It’s clear to me that they still don’t get it. Perhaps he still hates Bitcoin after all. That confuses me a bit because I thought that imitation was the sincerest form of flattery.

  14. Kevin, you summed it up completely. Jamie Dimon has been trying to do the same thing with Bitcoin that he has done in the Silver markets. I just saw the Department of Justice ordered Chase to reduce their position in Silver. He couldn’t even hide the fact his daughter was buying Bitcoin. This surfaced at a time he had threatened to fire anyone working for Chase that was involved with Bitcoin. (I wonder if he fired his daughter!)

  15. It is not a surprise that big fist conglomerates want to dismiss digital currency. They want to keep their monopoly in place. This way they can control inflation, control enormous rates and basically control the economies of scale for the country. Digital currency has opened my eyes to the unfairness of these conglomerates and the reason they charge us double digits numbers just to use our credit card. Once definance is accepted in main stream and not contrarian to popular belief, we will be able to control rates of inflation and have more fiat and digital currency to use.

  16. yeppers it is all about the power play of keeping status quo the status quo — time will always tell the absolute truth — but if anything becomes an opportunity to take the power away from the status quo they tend to become very protective of their power and so as I said earlier not sure which way it will turn out but time does tend to tell the absolute truth ??

  17. This summary statement is right on the money! (Pun intended… LOL) “The Banking system is only trying to change horses but THEY ARE IN THE SAME RACE.” Stephen Sampson

    It is the same race that has been run by ‘the Haves’ for centuries, while the ‘Have Nots’ always are victimized. It is a sad situation that this cycle continues to repeat generation after generation. The introduction of cryptocurrency and blockchain technology, into the mix recently, does provide a ray of hope for the future.

    Conceptually it has the potential to become an alternative to fiat, without permission from governments or corporations. That scares them so much because they can sense that the end of their run may be at hand, sooner than later. The uninformed will inevitably fall for the trickery of centralized digital coins, while the informed will gravitate to the best available decentralized cryptocurrency options.

  18. What is the point of the digital dollar? We can input our credit card number onto a website and pay for things online that way instead. The digital dollar is centralized. Crypto currency is decentralized. That is the beauty of crypto currency, crypto currency is decentralized and that is what separates it from any other way of transaction.

  19. Long live scalable cryptocurrency! Most, who have moved into cryptocurrency are looking to free themselves from different forms of regulations and banking shortcomings. Digital still follows the same banking regulations and collects your private data but does offer assistance if you error. Decentralized cryptocurrency is the way many choose to operate with anonymity and power over their own wallets. This is especially good for the millions of unbanked people around the globe!

  20. love the anonymity factor of a decentralized business model and less regulations and more freedom in my movements and less fear of being stolen hacked on — we must always work at being as quiet as we can in our finances and keeping as much normal banking bureaucracy away and out of our operations — it is back to what ive said many times less intervention n regulations better our chances of success and more Free we will be —

  21. Stephen, A really great read, and why we need to get rid of the middle “Men” for they all have their hands in the pot and they want total control; much like our life time politicians and the hundreds of people under them all scrambling to maintain a constant control over you. The banking centralize controls have become way to top heavy and take out the profits or direct the profits long before anyone else can realize they have done it.
    Stephen, a system where no one can manipulate it like you said is the only way to go with any monetary system; it should be to benefit the people using it, and not some rich powerful group

  22. it will be nice honestly if we could ever get to a banking system that does not intrude on our own personal history — however life and everyday existence kind of teaches me that total privacy is just a dream — however if we as online entrepreneurs can keep our biz simple and not too extravagant — then we may have a legit shot at Success — time will tell the whole story ??

  23. Power and control is why I believe the large corporations distribute negative information on Bitcoin. These powerful bankers and leaders don’t want money coming out of their pocket. I feel its a type of fraud to tell your customers, as the CEO of JPMorgan did, that Bitcoin is a negative concept yet purchasing it for the company. CEOs can get away with murder.

  24. Ever it has been the central banks plan to use the customer’s money for their plans and investments. Even today, as we step into the digital world of cryptocurrencies, they are looking for ways to keep control. They have or are implementing a plan to bring the banking system into the future by using the blockchain technology to maintain control of their financial empire. Their blockchain is centralized with little security for the customers. Fortunately for us, we have access to the decentralized blockchain technology, we have protection and much more. Your words are actuality of what is occurring Stephen. Great pos

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