The White House and the Federal Reserve have started to lay the groundwork for a programmable, trackable digital currency. The Biden administration released a sweeping executive order that directed numerous federal agencies to crack down on digital assets, including on popular cryptocurrencies, as well as to study the potential development of a central bank digital currency (CBDC). A CBDC would not be a digital version of the existing paper-based dollar, but rather an entirely new currency that would exist exclusively in a digital (meaning an electronic, non-physical) form.

In September 2022, the White House announced the completion of the CBDC reports. Although the administration did not officially propose a CBDC following the release of the reports, it did announce that it had developed “policy objectives” for a U.S. CBDC system. Biden also directed the leadership of the National Economic Council, National Security Council, Office of Science and Technology Policy and the Treasury Department to “meet regularly” with the Federal Reserve to further design a potential CBDC. Since September, the administration has worked tirelessly to advance the creation of a CBDC, through various working groups, speeches and coordinated efforts with non-government groups.

Under the various CBDC proposals floated by the Biden administration and the Federal Reserve, a U.S. CBDC would be programmable and traceable. Unlike with decentralized cryptocurrencies, such as Bitcoin, every transaction made using a CBDC could be easily traced to individual users by financial institutions, government agents and/or the Federal Reserve, depending on the details of the final design. Additionally, because a CBDC would be digital and programmable, rules could be imposed that limit spending on approved activities. So, if the federal government or Federal Reserve were to determine that Americans are buying too much gasoline, for example, it could stop people from using CBDCs at gas stations with a few clicks on a computer.

Perhaps most disturbing of all, however, is that under most of the CBDC designs discussed by the Biden administration and Federal Reserve, nearly all forms of ownership of CBDC money would also be strictly limited. Only large institutions such as banks, the federal government, and/or the Federal Reserve would actually have ownership of CBDCs. Everyone else would be prevented from having absolute control over their digital money. That means in this possible future, you will not own CBDC money, and you’ll have no privacy either.

Currently, when you go to the bank and deposit money into a checking or savings account, you immediately cease to own the money. The cash becomes the property of the bank. In most situations, the bank is required to return the money you provided to it at your request, but the cash ultimately belongs to the bank until you remove the money from your deposit account.

Under the current system, there is a way to regain control of your money, by withdrawing cash from a deposit account, and privacy laws prevent banks in many situations from giving away details about your financial accounts to third parties, including the government. But because CBDCs would only exist in digital form in a deposit account, and because they would be programmed to possibly feed data to the government, there would be no way for you to physically take CBDCs out of a depository account, store them privately, own them directly, or use them without being surveilled by a large institution.

Regardless of where your CBDCs are held, it’s likely the federal government would have access to data about your purchases and other information – a design choice CBDC supporters say is necessary so that officials can limit criminal activity. The only significant privacy questions that remain in the minds of those who support CBDCs are about the extent of the data collection.

Biblical Connection: For centuries people have wondered how it would be possible for the events of Revelation 13:16-17 to occur, where the Antichrist and False Prophet would be able to stop people from purchasing. Perhaps the groundwork for this type of system is not too far off.

PRAY: Pray that the forces of evil will not be able to use this type of technology to impact the world before the time of the Tribulation.