Digital currency: how is it shaping the new world order?

Digital currency: The assumption that central bank digital currencies (CBDCs) are more reliable than stablecoins should raise some eyebrows, says international lawyer Yaroslav K. Yarutin.

The past fifty years have radically reshaped the global socio-economic landscape. The globalist approach to the formation of the social fabric goes through the degrees of material possession. This solidified silver’s status as a full companion on the thorny path of evolution.

However, money itself has also evolved and undergone drastic changes. This in its forms and applications. It reflects fundamental shifts in its perception as a store of value in mass consciousness.

But is the financial component of society still such a solid bastion backed by the indisputable authority of the state?

The model of state-backed monetary stability was formed under the influence of the Westphalian world order that prevailed in the 17th century. Most world leaders and their subjects still hold such views about money on an almost subconscious level.

Despite advances in technology, echoes of these archaic views still reverberate today. It can be seen in the latest iteration of money in its digital form.

Central Bank Digital Currencies

According to the Financial Action Task Force and the Basel Committee on Banking Supervision, central bank digital currencies (CBDCs), a digital form of fiat money, are more reliable than stablecoins. This is only due to the fact that the issuance of CBDCs is carried out by a central bank. Not by a decentralized organization or a group of enthusiasts.

Given the level of associated risk, the international community has developed a similar approach. The global banking watchdog said stablecoins involve additional risks. Indeed, non-state actors are behind the issuance of these coins.

Financial regulators sincerely believe that money developed by a state is more reliable. But how reliable are these CBDCs essentially? Are they backed by commodities or tangible assets? Or is their support based solely on their legal status?

Given the rampant inflation and volatility of its exchange rate, the assumption that CBDCs are more trustworthy should raise some eyebrows.

Even the global banking watchdog stresses the need for financial institutions and regulators “to capture the risks associated with stabilization mechanisms” of cryptocurrencies when assessing the risk ratio.

Could the stabilization mechanisms developed by a group of enthusiasts be more reliable than those supported by the state? They certainly could, at least from a mathematical and economic point of view.

Digital currency: soft laws

The aforementioned provisions do not derive from instruments of international law. They come from the so-called “soft” law. The adoption of “soft” law provisions does not require total consistency on the part of sovereign States. This contrasts with the process of concluding conventions or international treaties. Hereby, the international community proclaims the uselessness of sovereign will while sculpting the frameworks of international regulation.

The international community has recognized virtual currencies, including stablecoins, as categories subject to international law. There is already a legal basis in the works for the global recognition of digital currencies. By developing a legal approach, the international community subtly calls on States to put in place rules allowing the free circulation of virtual currencies in the same way as fiduciary money.

The generalization of virtual currencies is considered a harbinger of the new world order. It is characterized by the redistribution of the financial sovereignty of the state between supranational entities and groups of enthusiasts.

Every individual has the right to hold their own political views, or lack thereof, and that right is immutable. Each group of enthusiasts has the right to defend its ideals, as long as it does not violate any applicable law. However, would a state promote the concept of its sovereignty? Surprisingly, on the contrary, States are contributing in every way possible to the advent of the new world order.

Digital currency: The assumption that CBDCs are more reliable than stablecoins should raise some eyebrows

Digital vs Traditional Currency

A considerable number of people and businesses around the world refrain from using fiat currency for a number of reasons. These include its non-universality, high inflationary expectations and heavy compliance burden.

These circumstances obviously reduce the competitiveness of the traditional financial system. It is based on fiat currency championed by the US dollar as the world’s reserve currency. The latter literally undermines its own status by becoming an instrument of political manipulation and repression in an ongoing type of economic warfare. This leads to the destruction of civil liberties and the free exchange of value on a global scale.

Humanity currently desperately needs a strictly regulated traditional financial system. And, an alternative in the form of decentralized finance that is free from redundant control, ruthless repressions, discrimination and intolerance, endemic corruption and unjust restrictions.

To win the geopolitical race of the 21st century, states must abandon the oppressive paradigm of legal prohibitions related to cryptocurrencies and blockchain-based projects.

Money should not be a restrictive instrument, but rather a unifying force to facilitate the free flow of goods and services.

The current financial system in place is quite the opposite. It is an instrument of subjugation armed to forcefully impose points of view.

From then on, alternative finance becomes the refuge that blurs the boundaries between people. And, it meets the basic needs for the inclusive and sustainable development of all humanity.

About the Author

Yaroslav K. Yarutin is an international lawyer and lawyer from Moscow, Russia. His legal practice is primarily aimed at protecting the rights of crypto enthusiasts around the world. Prior to getting his lawyer’s license, Yaroslav has experience of project interaction with the global consulting firm on legal issues related to AML/KYC, international tax compliance (FATCA, CRS) and corporate crime. initiates. He also has professional experience in the legal department of a major international bank. Yaroslav holds an LL.M. degree in international law. He speaks Russian, English and Chinese.

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