🎩 Importance of Digital Payments 🎩
The truth is that those card and PayPal transactions you take for granted, power the global economy. After all, with those digital transactions it’s going to be pretty difficult to buy anything online. Yes, these types of payments have tons of benefits. If you lose your bank card, your bank will send you a new one. Get scammed using PayPal? Well, you can dispute that payment. You even get a ton of perks if you use a credit card. With all those benefits, you have many people asking the question: Why do we even need cash? That’s kickstarted a trend to a cashless society, with a significant number of governments looking at CBDCs. Everything sounds good, right? Well, don’t be so hasty!
👎 The Problem With Payment Providers 👎
Studies have shown that the more credit a person is given, the greater their propensity to spend. So, those credit cards are a sort of debt trap. Debit cards have the benefits of credit cards. However, you can only spend the money you have. However, the drawbacks are those merchant fees which are about 30 cents each and 3% of the transactions. Those fees are passed onto consumers. Then you have the likes of WeChat Pay that basically have no transaction fees. However, you do have to put up with the Chinese government sifting through your transactions. Do something the government doesn’t like and they’ll suspend your WeChat account! A genius way of controlling the population. 🇭🇰 Dangers of Cashless Society 🇭🇰 Turns out that a lot of people wanted to attend the pro democracy protests a little while ago. What was the main way of getting there? Public transport. In HK they have a contactless smart card called an Octopus card to pay for that. However, during the protests people switched to paying in cash as this could not be traced by the government. However, in a cashless society this would not be possible. So, this would lead to greater government control. Also, do you really want the likes of Visa to have this much power?
🔮 A Dystopian Future?🔮
Make sure you watch the vid if you want to hear my take on the rise of payment oligopolies and the value of crypto as an alternative.
🏦 The Pandemic & CBDCs 🏦
In this mini thought-experiment, I outline how governments may usher in the age of cashless societies and CBDCs. Seriously guys, this could be the greatest assault on our freedoms we’ve ever seen!
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.