Former Coinbase CTO urges ‘get to Bitcoin’ before CBDC digital lockdown Former Coinbase CTO urges ‘get to Bitcoin’ before CBDC digital lockdown
Balaji Srinivasan warns of impending financial tyranny under CBDC system, advocates for Bitcoin as a solution.
2 min read
Updated: Jul. 22, 2023 at 10:50 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Former Coinbase CTO Balaji Srinivasan warned people to “GET TO BITCOIN BEFORE DIGITAL LOCKDOWN.”
The comment came in a lengthy tweet about banking system weaknesses and the soon-to-be-released FedNow payment network.
Srinivasan described a hypothetical situation where individuals have “Bitcoin independence” or are confined to a CBDC system. He compared the latter to a digital financial ringfence, which he labeled the “Great Dollarwall” — a nod to China’s Great Firewall that restricts access to certain websites considered inappropriate by the governing Chinese Communist Party.
“Fed is launching their CBDC in July.
You have about 90 days to exit.
After that, you’re trapped.”
Fed around and find out
Recent events — including the collapse and seizure of three American banks — have drawn attention to the fragility of the banking system. This unease was further amplified over the weekend as Credit Suisse revealed a “material weakness.”
During a recent live stream, Input Output CEO Charles Hoskinson summarized the current state of the banking system, stating that its failure is inevitable. Hoskinson pointed out the unsustainability of Ponzinomics, which involves creating money out of thin air and relying on monetary expansion to sustain the Ponzi scheme.
On March 15, the Fed said its FedNow payment network would launch in July. This network will offer settlement services, allowing participating organizations to make instant payments to one another.
It is worth noting that FedNow is not a CBDC system. Nonetheless, some individuals suggest it could be a complement or precursor to a CBDC, should such a thing become a reality.
Connecting the two issues, Srinivasan launched into a lengthy tirade, criticizing the U.S. government’s history of dishonesty. For those who remain skeptical of his assertions, Srinivasan challenged them to “fed around and find out.”
Bitcoin to the rescue?
CBDC critics voice concerns over the centralization of power and their potential to force behavioral compliance. Srinivasan echoed these concerns saying:
“Just imagine wage, price, and capital controls down to the individual level for those still trapped in the dollar system.“
Under such a system, he warned it’s “game over” for personal sovereignty and those who oppose and call out political shenanigans. Addressing the argument that “something like this couldn’t happen in the West,” Srinivasan proceeded to reel off several examples of U.S. government lies.
“Just think about all the lies — NSA surveillance, Iraq WMD, the 2008 financial crisis, the last ten years of media whoppers, the claim that masks don’t work before they do, the denial of inflation“
With that, he asked if readers had enough trust in the U.S. government to relinquish complete control of their money to them.
For those who don’t, Srinivasan said financial sovereignty is possible through Bitcoin – recommending concerned citizens acquire BTC “before they lock you in.”
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Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Input Output
Input Output Hong Kong (IOHK) is a research and development company committed to using the peer-to-peer innovations of blockchain to build accessible financial services for all.
Balaji Srinivasan is recognized for his influential roles in the tech and cryptocurrency sectors, most notably as the former Chief Technology Officer (CTO) of Coinbase.
Charles Hoskinson, based in Colorado, stands out as a prominent figure in the blockchain and cryptocurrency sphere.