The Central Bank of Venezuela will launch a central bank digital currency (CBDC) in October alongside a monetary redenomination that will cut six zeros from the currency due to raging inflation.
Early June, I posted an article titled, The Race Towards a Central Bank Digital Currency, which was meant to bring together the latest news pertaining to cryptocurrency and Central Bank Digital Currency (CBDC) and how we should view it from a prophetic perspective. In the article I noted how the increase in the popularity of cryptocurrency such as bitcoin is causing governments to tune in and in turn look into their own CBDC in order to not be outdone by cryptocurrency, or worse, left behind by other nations such as China who are well ahead of this race to issuing a CBDC.
Since then there’s been much that’s occurred in the world of digital currency. In January I posted an article about Venezuela’s attempt to move to a fully digital currency. In an update to that, it’s been announced that they will be launching a CBDC of their own in October. The Ukrainian government is also fully authorized to issue a digital currency. If that wasn’t enough, British Chancellor Rishi Sunak is also pushing for a digital currency -“Britcoin”, “In what Treasury insiders say would be the biggest upheaval in the monetary system for centuries, the Bank of England would establish a direct digital equivalent to physical money and take control of it in the same way as sterling,” (Daily Mail).
Meanwhile, other countries are racing to develop their own digital currencies. China has been testing a digital yuan; US Treasury secretary Janet Yellen has hinted that a digital dollar could be created; and the European Central Bank is investigating plans for a digital euro. (DailyMail)
There are around 81 countries currently exploring a CBDC and that doesn’t seem to be slowing down anytime soon. According to Axios “81 countries, representing over 90% of global GDP, are now exploring the development of one,” (Axios).
Axios notes that the US is lagging behind this effort which is something that I’ve mentioned in the past particularly in my article here. It’s due to this lag that the federal reserve is now starting to move a bit faster. In fact, Federal Reserve Governor Lael Brainard called for urgency “around the issue of developing a U.S. central bank digital currency, including the fact that other countries such as China are moving ahead with their own,” (Reuters).
‘The dollar is very dominant in international payments, and if you have the other major jurisdictions in the world with a digital currency, a CBDC (central bank digital currency) offering, and the U.S. doesn’t have one, I just, I can’t wrap my head around that,’ Brainard told the Aspen Institute Economic Strategy Group. ‘That just doesn’t sound like a sustainable future to me.’ (Reuters)
Early July we learned that the International Monetary Fund (IMF) and the World Bank along with the Bank for International Settlements (BIS) advocated for the benefits of digital currencies at G20, “The International Monetary Fund (IMF) and the World Bank on Friday advocated for the cross-border benefits of central bank-issued digital currencies, suggesting that projects like a digital dollar in the U.S. would support global development”, (Yahoo Finance).
Federal Reserve Chair Jerome Powell has also spoken positively about a US digital currency by pointing out that having one “could undercut the need for private alternatives such as cryptocurrencies and stablecoins,” (Reuters). This is important because in the beginning of the article I mentioned how governments are looking closer into CBDC due to the rise of crypto and stablecoins which we continue to see brought up.
“I think that may be the case and I think that’s one of the arguments that are offered in favor of digital currency,” Powell said during a hearing before the U.S. House of Representatives Financial Services Committee. “That, in particular, you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency – I think that’s one of the stronger arguments in its favor.” (Reuters)
As interesting as this all may sound on its own my ultimate purpose here is to bring this all back to the bible. Why does this all matter from a prophetic perspective? I don’t see the rise in the popularity of cryptocurrency (as well as its adoption) which is further spurring on this CBDC race as a coincidence. In my article, What is the Prophetic Significance of Digital Currency?, I elaborated on why I believe this digital currency race is prophetically significant.
I believe that it’s possible that this “CBDC race” may very well contribute to or be laying the groundwork for the mark of the beast system that comes about during the tribulation and that as we see efforts for this progress it shows us how close this time period is to us, and even closer the rapture of the church.
Venezuela to launch CBDC in October — And cut six zeros from its currency
CoinTelegraph: As of Oct. 1, the digital Venezuelan bolivar will begin circulation in the economy. Its cash equivalent will get a new 1-bolivar coin, along with banknotes ranging from 5 bolivars to 100 bolivars as part of the six-zero readjustment of the currency.
The Central Bank of Venezuela made the announcement on Friday. The CBDC will be accompanied by an SMS-based exchange system to facilitate payments and transfers among its users. The bank claimed that the CBDC and redenomination of the currency will have no effect on the bolivar’s value and that the overhaul is part of a move to simplify the use of the currency.
“The bolivar will not be worth any more or any less, in order to facilitate its use, it is being taken to a simpler monetary scale,” the central bank said.
Venezuelan President Nicolás Maduro first teased the idea of a digital bolivar back in February as he outlined the issuance of CBDC as one of the actions the government was taking to modernize and rebuild the economy.
The president is no stranger to state-issued digital currencies, having launched the oil-pegged Petro coin in 2018 as a tool to circumvent United States sanctions.
This is the second time in three years that Venezuela has readjusted the bolivar after Maduro cut five zeros from the currency in 2018 as inflation hit its peak of 1.8 million percent. In 2020, the annual inflation rate was estimated to be around 2,300%. Read More
Ukraine central bank now officially allowed to issue digital currency
Cointelegraph: The Ukrainian government is moving forward with its central bank digital currency (CBDC) plans, as the National Bank of Ukraine (NBU) is now officially authorized to issue a digital currency.
Ukrainian President Volodymyr Zelenskyy has signed a law titled On Payment Services, officially enabling the country’s central bank to issue a CBDC, the digital hryvnia, according to a Thursday announcement.
The new law authorizes the NBU to set up regulatory sandboxes for testing payment services and instruments based on emerging technologies. The new legislation also requires close collaboration between the Ukrainian central bank and local startups in the payment market, taking into account the demand of the private sector, the announcement reads.
Initially approved by the Ukrainian parliament in late June, the On Payment Services aims to provide the implementation of open banking, the practice of sharing access and control to consumer financial information through third-party applications. The law is expected to stimulate the development of financial technologies in the country, allowing private fintech companies to establish cooperation with banks and have more business opportunities.
Among other intentions, the newly signed law is also designed to adapt the Ukrainian legislation to the legal framework of the European Union, which would eventually allow integrating the country’s payment system with the one of the EU, the announcement notes. The legislation is based on modern requirements and takes into account the standards of European regulatory acts, including the Payments Service Directive 2 and the E-Money Directive. Read More
Other articles in this series:
Sources
- Venezuela to launch CBDC in October — and cut six zeros from its currency (August 5th, 2021) – Cointelegraph
- Ukraine central bank now officially allowed to issue digital currency (July 30th, 2021) – Cointelegraph
- Fed’s Brainard: Can’t wrap head around not having U.S. central bank digital currency (July 30th, 2021) – Reuters
- The Britcoin revolution! Rishi Sunak plans to introduce official digital currency to rival cash in ‘biggest upheaval in the monetary system for centuries’ (July 24th, 2021) – Daily New
- The 81 countries exploring central bank digital currencies (July 22nd, 2021) – Axios
- Powell says a Fed digital currency could undercut need for cryptocurrencies (July 14th, 2021) – Reuters
- IMF, World Bank advocate for benefits of central bank-issued digital currencies at G20 (July 9th, 2021) – Yahoo Finance