The evidence that central bank digital currencies (CBDCs) could be a threat to your financial freedom continues to grow…
Brazil is running a pilot project to test a digital version of its currency, the real. As part of the process, it was made using open-source code that anyone can see online.
That’s a positive mark for transparency.
But according to the website Cointelegraph, a Brazilian blockchain developer named Pedro Magalhães was recently able to reverse engineer the open-source code.
And what he found was troubling…
The digital real includes functions that allow the freezing and unfreezing of accounts… increasing and decreasing of balances… and creating or burning tokens from wallets.
Magalhães says the functions can be beneficial. For instance, the digital real can track how tax funds are allocated and prevent bank runs.
However, he points out that the digital real ledger doesn’t say who has the power to freeze and unfreeze accounts or specify under what circumstances they can do so.
This is much different than decentralized blockchains like bitcoin and Ethereum. They include smart contracts that specify the details of any transaction.
And since smart contracts are written in immutable code, you can’t alter or tamper with them.
Here’s the thing about CBDCs: They offer the benefits of blockchain technology… without the decentralization needed to prevent surveillance.
Now, we’re not saying the Brazilian government will use the digital real to snoop on its citizens. But it has the ability to do so.
That’s why the crypto community is so skeptical of CBDCs.
And it’s why you should watch out for the launch of a new payment network in the United States. It’s called FedNow. And it’s scheduled to launch later this month.
Like decentralized blockchain technology, FedNow will allow you to settle transactions (like wire transfers and check deposits) much faster.
It also uses a ledger system to keep track of every single transaction. That makes it the perfect launching pad for a “digital dollar.”
Look, CBDCs are the future. There’s no getting around that. More than 110 countries are already experimenting with or using them.
The best thing you can do to protect your financial freedom is to opt some of your wealth out of the traditional currency system by allocating a portion of it to bitcoin.
Remember, all great change brings great profit opportunity, too. This seismic shift to a CBDCs is no different.
There are multiple ways for you to profit from the potential rollout of the digital dollar.
And Daily editor Teeka Tiwari has put together a new playbook to show you how.
In it, you’ll learn:
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Step-by-step instructions to securely buy and store your bitcoin.
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The name of a company set to profit from the digital dollar trend.
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The name of a crypto project also set to profit from this trend.
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And a little-known way to 10x your money on gold.
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Regards,
Chaka Ferguson
Editorial Director, Palm Beach Daily