Acclaimed author of Rich Dad Poor Dad, Robert Kiyosaki, has issued a stark warning that the US’s possible launch of a central bank digital currency (CBDC) could lead to a surveillance state akin to George Orwell’s dystopian novel, 1984.
Kiyosaki shared his concerns in a recent episode of The Rich Dad podcast, suggesting that a Federal Reserve-backed CBDC would enable an unprecedented level of government surveillance on citizens.
Related: Biden signals support for CBDCs
Kiyosaki expressed his apprehension regarding the potential loss of privacy that would accompany the introduction of a CBDC. He fears that with the “FedCoin,” authorities will have the ability to monitor every transaction, purchase, and financial interaction, effectively erasing any semblance of privacy.
In drawing parallels to Orwell’s 1984, Kiyosaki highlights the potential for a “Big Brother” scenario, where people’s lives are constantly scrutinized through their monetary activities.
The author’s comments have emerged at a time when the Federal Reserve is actively investigating the advantages of implementing a CBDC.
“The major apprehension with FedCoin, the CBDC, is that it erodes our privacy. By tracking every financial transaction, they will have access to every detail of our spending, the recipient of our money, and how we allocate our resources. In essence, it replicates George Orwell’s dystopian society depicted in 1984. Big Brother will be constantly monitoring our financial activity, and this is precisely the problem with central bank digital currency, or the Fed Coin.
“As an individual, I become nervous at the thought of this. I do not want them to monitor my every transaction or be privy to my spending habits. It is a violation of my privacy, and they have no business knowing how I choose to allocate my resources.”
Rep. Tom Emmer (R-MN) introduced a bill that would ban the US Federal Reserve from introducing a Central Bank Digital Currency (CBDC) or using a digital currency to control monetary policy.
The bill would also require the Fed to be transparent with Congress about its efforts to study digital currency systems.
All over the world, central governments are increasingly exploring the idea of central bank digital currencies, to not only digitize money but also financial systems.
That would be possible because a CBDC is programmable, meaning the government can dictate how much you spend, what you can use it for, and even how much you can save. A government can also program negative rates on savings accounts to encourage people to spend money.
