Global Banks Partnering to Test Centralized Digital Currency

The banks partnered with the New York Federal Reserve.

QUICK FACTS:
  • Several major banking institutions are partnering with the New York Fed to test a 12-week digital dollar program.
  • The program works to test how the banks would function with digital dollar tokens instead of a cash system.
  • Banks, including Wells Fargo, Citigroup, and Mastercard, are all taking part in the pilot program.
  • The plan has a stated purpose of using a central bank digital dollar to speed settlements time in currency markets, according to Michelle Neil, the head of the New York Fed’s market group.
  • The push for digital currency has raised questions among conservatives who are concerned the banking system could use access to digital funds as a way of manipulating citizens.
CONSERVATIVES’ PROBLEMS WITH BIG BANKS:
  • Conservatives are worried about the possibility of banking being used against those who hold an ideology antithetical to that banking institution’s leadership.
  • The United States federal reserve has been pushing “climate change” dogma onto banks, potentially creating a foundation for a Chinese- style social credit score system.
  • Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo are all said to be “assessing their exposure to climate risks through a pilot program.”
  • The Federal Reserve said the plan is “designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks.”
  • Chase bank canceled the bank account for the nonprofit ‘The National Committee’ for Religious Freedom (NCRF), which is a 501(c)4 political action group that opened an account with the bank in April.
  • Another seemingly political move by banks took place when J.P. Morgan Chase bank cut ties with Kanye West on the heels of West’s public statement that “white lives matter.”
  • Political Commentator Candace Owens reported on the banking company’s decision saying, “I was told there was no official reason given, but they sent this letter as well to confirm that he has until late November to find another place for the Yeezy empire to bank.”
  • The banking institution also froze donations to Republicans who contested the 2020 election results in the summer of 2021.
BACKGROUND:
  • In China, where the banks make a number of decisions based on social credit systems, tanks were rolled out to banks earlier this year to guard the institutions from account holders, as American Faith reported in July of this year.
  • Footage from the Shandong Province in China shows military vehicles blocking the Chinese people from accessing banks that denied them access to their money.
  • Issues with the financial system began months ago after the State Council approved a special purpose debt quota of 103 billion yuan ($15.2 billion) to provide liquidity to small banks in Liaoning, Gansu, Henan, and Dalian, the CBIRC source told the South China Morning Post.