China and Russia: Full Steam Ahead Towards a Cashless Society

Sprott Money's picture

China and Russia: Full Steam Ahead Towards a Cashless Society

Posted with permission and written by Rory Hall, The Daily Coin

 

China and Russia: Full Steam Ahead Towards a Cashless Society - Rory Hall

We reported back in November 2016 – Cashless World: 1 out of 3 People Never Use Cash – fewer and fewer people understand the importance of using cash to protect themselves from an overarching government warlord. At the time, China’s use of digitized currency was growing at about 40% per annum. This means millions of people each year freely hand over their cash and opt to use their cell phone, online currency transfers or a plastic debit/credit card to make 100% of their purchases. We see this as nothing short of happily going into the gulag of digital enslavement.

 

Today we learned China is taking another step toward being a cashless society. Not just any cashless society, but the largest populated nation on the planet. Please keep in mind this announcement is coming on the heels of China’s closest ally, Russia, announcing she would be issuing a crypto-ruble – Which is a digitized currency as well.
Once these two nations go cashless that will be a huge blow to hard currency in circulation around the world.

 

Yesterday, Cointelegraph reported that local news sources in Russia had been informed by the Minister of Communications, Nikolay Nikiforov, that President Putin has approved a plan for the issue of a “CrypoRuble.” There was no detail, however, on timeline and no any subsequent confirmation that we’ve seen. Coincidentally, or not, Nikiforov is quoted as saying “I confidently declare that we run (sic) CryptoRuble for one simple reason: if we do not, then after 2 months our neighbors in the EurAsEC will.” Source

As ZeroHedge reported:

 

In a story that seems to have gone largely unnoticed by the western press, the China Daily reported that the PBoC has successfully designed a prototype that can regulate its future supply of digital fiat currency.

In a report, “PBoC inches closer to digital currency”, the newspaper stated that China’s central bank “has completed trial runs on the algorithms needed for digital currency supply, taking it a step closer to addressing the technological challenges associated with digital currencies, according to a top official associated with the project.”

China’s has been preparing for digital currency since 2016. In June this year, the PBoC “finished several digital money trials involving fake transactions between it and some of the country’s commercial banks.” Given over-invoicing of imports and the shenanigans in the shadow banking/WMP sector, we suspect that the commercial banks took to these trials like proverbial flies to feces.

The China Daily article goes on to suggest that, while there is no timetable, “China is likely to become the first country that would deploy a digital fiat currency.”




Far be it for us to question the accuracy of the China Daily – which Wikipedia notes is often used as a guide to Chinese government policy – but we were expecting Sweden (already the world’s most cashless society) to be first. It has been widely reported that the introduction of an “e-krona” is being investigated by the Riksbank. Forbes noted last month that “The inquiry is expected to be finalized in late 2019.” It would not replace cash, which accounts for 1% of transactions in Sweden according to a recent BBC report, but operate alongside physical cash initially.

So…while China expects to be first, it will be “some time before the currency goes public”. According to Di Gang, a senior engineer of the Institute of Digital Money at the PBOC, a number of concerns need to be solved like “managing risks and improving efficiency.” He added that “the government also needs to factor whether the public would use the currency.”




We know the answer to that.

Yes, although it would be much quicker if Chinese citizens could somehow use it to get their savings out of the country.

Back to the serious work of the PBoC’s Institute of Digital Money. Yao Qian, the director-general no less, said that the successful simulation of money supply had paved the way for the central bank to become the future sole regulator and policymaker governing the value of digital currency. That sounded like a veiled explanation for the recent heavy-handed clampdown on Bitcoin trading in the Middle Kingdom. Indeed, the story notes that “Unlike Bitcoin or other digital money issued by the private sector, the digital fiat currency has the same legal status as the Chinese yuan.” Source

This sounds like a rebuttal to bitcoin and other privately issued cryptocurrencies and a way for the Chinese government to begin the process of outlawing private cryptocurrencies. It’s not just another major step in moving to a cashless society, it’s a major step in attacking cryptocurrencies as they continue to gain notoriety.

 

We have been arguing these totalitarian governments, like China, the U.S., Russia and most other governments, are not going to simply hand over the mechanism that produces their power and control. We are now seeing the first real steps by a major government to maintain their control and power through the issuance of currency. If the people want to enslave themselves through the use of digital currency, why wouldn’t the government be on board with that idea and fully assist the citizens in their desire to willingly hand over their sovereignty?

 

 

 

Questions or comments about this article? Leave your thoughts HERE.

 

 

 

 

China and Russia: Full Steam Ahead Towards a Cashless Society

Posted with permission and written by Rory Hall, The Daily Coin

 

 

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Hkan's picture

Totally control.....successful for now. As time goes frustration building from taxes and regulations will kill cryptocurrency going back to trade (potatoes for meat). Total control...end in total collapse. Pretty much like EU...citizen kickback. 

Turning another historybook page..... 

grasha87's picture

I have created a currency that is better than gold, bitcoin, and the dollar. It is based on Say's Law and is neither inflationary nor deflationary. It helps alleviate unemployment during recessions:

 

https://bunky1787.wordpress.com/2017/09/06/the-wallark-neo-scrip/

grasha87's picture

I have created a currency that is better than gold, bitcoin, and the dollar. It is based on Say's Law and is neither inflationary nor deflationary. It helps alleviate unemployment during recessions:

 

https://bunky1787.wordpress.com/2017/09/06/the-wallark-neo-scrip/

Der Libertäre's picture

It feels to me that any anti Sprott comment here get lots of thumbs down - can be accidentally - can be the Sprott company working on weekends.

I don't trust them anymore. I would not read nor listen to them anymore.

And now Sprotties give me the down fingers.  LOL

Honest Sam's picture

Earlier in the week Sprott either endorsed or did it themselves in the firing of whistleblower about a serious problem.  It's in the back pages here.

CoCosAB's picture

SLAVES are DUMB as SHIT!

Maestro Maestro's picture

And you were all waiting for China and Russia to declare that their currencies were backed by gold, and dethrone the king dollar.

All the gold they told you the Russians and the Chinese were buying was a lie. I fell for it myself. What a letdown.

How could the gold price go lower and than stagnate if they were really buying physical gold in large amounts, like the Chinese and the Russians whispered in our ears through the agency of alternative websites and gold analysts? Do not believe a word the Chinese, the Americans, the Russians, the Indians, the Saudi muslim terrorists, or the Israelis are saying.

Instead, all the governments and the bankers are colluding behind the scenes to screw average folk everywhere.

The ruling classes are sick depraved fucks only competing for the accolades of Who can cull the human race better.

Look at Syria. America, Russia and Israel are cooperating to murder as many human beings that they can: Jihadi, Christian, Shia, Sunni, Arab, Turkmen or Kurd, it's all the same to them.

Do not pay taxes. Do not use fiat or cryptos. Do not conscript into their armies or police forces. Do not fight their wars.

Exterminate the bankers and the generals and the politicians. Bring down the bankers.

Why don't you kill yourself.

It's all because of you.

Honest Sam's picture

You need a break.

Order some takeout Canadian food.

erk's picture

The problem with fiat is the creators of it can use it to buy things of actual value (food, land, companies etc.) for almost zero cost.

ICOs are a scam for exactly the same reason, they can issue tokens for almost no cost and get Ethereum or other valuable coins which they can trade to buy food, land, companies etc.

Central bank issued crypto currencies are the same as any other pre-mine, (fiat, XRP, ICO tokens) they do not represent work that has been done, eg. the energy cost of mining, and there is no limit to the rate of issue, therefore they are most certainly not a unit of account, one of the key attributes of money. In other words they are a scam like fiat, so the creators can use their near worthless tokens to buy real things of value.

 

What's worse is that the idiot masses are quite prepared to give away their items of value for these near worthless tokens, like they have been doing since the Nixon era with USD, resulting in wealth/power concentration to the banksters and token issuers. Soverign crypto coins are just the latest fad in the same "conjure out of thin air" scam.  Tokens that are an IOU for fiat, which itself is an IOU whereby the item owed is undefined, so it need never be paid back. It''s the best scam ever!

 

Maestro Maestro's picture

So true.

Thanks for sharing.

deKevelioc's picture

Sprott should hide for a while.   I'll never do business with the guy.  He can be bought.

Maestro Maestro's picture

Unlike you, psyop CIA troll who is trying to mindfuck us all?

ZIRPdiggler's picture

ahhhhhh yes. Sprott money; still shouting as they fall further into the depths of irrelevance.  I used to be a gold bug until it became evident that central banks CAN and DO whatever the fuck they want.   I'm sure we will see DOW 50,000....soon.   I'm tired of listening to the PM community bitch about their powerlessness at a time when we are afforded the perfect solution, found in cryptocurrencies.  Listen to me dumbfuck gold bugs:  NO CENTRAL BANK OR FINANCIAL INSTITUTION WILL EVER CONTROL BITCOIN.  The fact is, they're not able to, no matter how many blockchain counterfeits they create.  Could governments win the battle over control, defeating sound money as well as kill blockchain-based currencies?  It's possible, but not likely; after all there are a million and one places to hide a Bitcoin wallet and as long as there is a market for crypto, it will be very useful.  I choose to believe the unwashed masses will win this power struggle against governments.  It's defeatist operate under any other assumption.  Why bother getting out of bed if you already believe you've lost the war?

Maestro Maestro's picture

Another psyop CIA agent, this one, pretending that cryptos are kryptonite to the central bankers who created them.

How can you live with yourself, you subhuman piece of shit?

Exterminate the bankers, the politicians and the governments, the generals and the CIA, and their muslim terrorists.

Or they will kill us all, one way or another.

Volkodav's picture

     get lost Sprott

     weaklings

koan's picture

There still has to be some form of anonymous cash, these 2 nations know damn good and well that the blackmarket economy is huge and important.

honest injun's picture

An EMP attack or hacking the electrical grid will be more devastating than nuclear bombs in a cashless society.

1033eruth's picture

This is such a BS story and it will hook lots of people because they've never been there and know virtually nothing about the former soviet union except that we need to go to war with them because of the propaganda.

The vast majority of the people are still going to be going out to their dachas, growing produce or small animals and standing at the flea markets trying to sell what little they can.  And a ridiculous number of them are dog breeders too.  Any way to augment their meager incomes and retirement.  

Barter is the rule there far more than a cashless society will ever be.  Cashless will be for the wealthy on the top.  The other 95% will be the same as it ever was.  

I give this article a 5 out of 5 for heaping stinkiness

Juliette's picture

In the meantime, Bitcoin is up $ 375 USD in the past hour ...Time for the godbugs to capitulate! Now at $ 6050 USD!!!

 

Maestro Maestro's picture

Bankers raising the bitcoin price to lead the herd to their financial enslavement.

Kill the bankers or they will make us kill each other.

Greenspazm's picture

If you want to know what Sprott is good for, check the share price chart of Sprott Resources.

messystateofaffairs's picture

Thus is how it will work.

First countries will replace cash with traceable fiat blockchain money and eliminate cash.

Second they will not use the inherent capability to tax the shit out of everything economic you do so people (sheeple?) won't perceive the threat and will happily go along with the move.

Third when the hook is set they will reel you in and tax the shit out of you, more than they already do that is. The Beast would have truly given every man a number without which he could neither buy nor sell.

Fourth untraceable specie blockchain money (illegal by now of course) will make its appearance in the reemerging underground economy and gather momentum. There will be two economies again one in the dark competing against the one in Satans light.

Fifth The show of good against evil goes on.

Maestro Maestro's picture

Insidious liar.

No crypto is good as no crypto has real economic value, same as fiat. All cryptos are banker cryptos as no normal human being would even conceive the idea of exchanging real and valuable goods and services against worthless electrons swimming around in a banker's computer.

Calculus99's picture

Anyway we're already in a cashless soceity if you live in the west. 

Imagine not having any cash for a year, only using plastic and online, you'd encounter very few problems and ZERO negative effect to your lifestyle. 

Try doing that 20 years ago. 

Calculus99's picture

Cashless soceity = very bullish for Crypto currencies.

People are going to be given a simple choice, government money or free money (ccs out of their control to a certain degree). Many people will rightly choose both, both have their advahntages and disadvantages.

Folks, that's a hell of a lot of CCs to be bought....

PS. When that (nasty) Russian CC is introduced, buy a min of $100. See how it works, what it can do, where it can go etc. The future is digital, understand and embrace that or get left behind. And who by the way do you think will be embracing that statement the most? I'd say the 3rd world. Think about that...  

Volkodav's picture

       best info it is digital rouble only... same value

       not mineable or any of that  

 

 

Neochrome's picture

Yeah, because Russia and China who are seeking monetary sovereignty should instead of developing their own accept yet another slew of (crypto) currencies originating in the West... 

 

spanish inquisition's picture

Wondering about this if Russia invents their own cryptoruble. Who owns the crypto vs who owns the cash? Seems like a potential end around, if Russia owns the crypto and the cash owned by Rothchild is sitting dormant in a bank. I don't know if it matters, but it seems like something is afoot.

truthordare's picture

Another sourceless article from Contelecrap

Yellow_Snow's picture

Sprott crypto-bashing BS has the 'oldbugs' dancing...

Karl Marxist's picture

I'm happy for your comment. I was feeling about the article same way -- get the "oldbugs" dancing. Mord FUD.

Boonster's picture

I left China in 2016 after 7 years. I saw little signs of this; cash was king. Most businesses were not set up for electronic payments. A few young people paid with their smartphones but this was a rare occurance. Still have freinds there and they said this story is bullshit.

grasha87's picture

I have created a currency that is better than gold, bitcoin, and the dollar. It is based on Say's Law and is neither inflationary nor deflationary. It helps alleviate unemployment during recessions:

 

https://bunky1787.wordpress.com/2017/09/06/the-wallark-neo-scrip/

messystateofaffairs's picture

The velocity of a little bit of cash used to power an underground economy is breathtaking. I remember back in the day when my darling govt used to publish the amount of cash in circulation and I compared it to my legal goods trading volume I used to wonder if I had all the cash.

Grandad Grumps's picture

Let em. Don't want it here, if for no other reason than the criminal parasitic elitists want it.

VWAndy's picture

 Yes team fiat. I told you so!

Bonaparte's picture

Yeah go digital or crypto. Oops, like in Cypress and Greece, the gubmint declare your account locked until further notice,( year 3525 perhaps.) Maybe the whole system is hacked by Nigerian princes who need your account for the good of the world. 

Kefeer's picture

"This sounds like a rebuttal to bitcoin and other privately issued cryptocurrencies and a way for the Chinese government to begin the process of outlawing private cryptocurrencies." - end  Yep, yep and more yep

 

That is exactly right and Europe will be next as the EU will begin that process.  Anyone who believes the EU will be busted up doesn't understand the power of the psychopaths who have authority and power which came from basically the same. As soon as they create an EU Military, then you will know it is over.

Juliette's picture

I invested first in gold and silver and now in cryptos ... not because I want to enslave myself, but the contrary, I want to empower myself through greater returns, becoming financially independent (not quite there yet, but on track I guess). A fiat-based crypto currency would be worthless to me.

grasha87's picture

I have created a currency that is better than gold, bitcoin, and the dollar. It is based on Say's Law and is neither inflationary nor deflationary. It helps alleviate unemployment during recessions:

 

https://bunky1787.wordpress.com/2017/09/06/the-wallark-neo-scrip/

ZIRPdiggler's picture

Amen! COuld not have said it better myself.

bezel-bob's picture

CryptoBabble....

ZIRPdiggler's picture

how bout this babble:  I've made 5000% profit this year on Bitcoin and Ethereum, Litecoin and Monero.  My silver stash?  a whopping 3%......that speaks louder than any whiney crybaby PM dealer.  

Maestro Maestro's picture

CIA troll.

The bankers are making bitcoin go up in price by thousands of dollars. There is no other explanation as real price discovery based on economic facts has been extinguished by the bankers. So, with lots of people buying gold and silver, the bankers assert that gold is going down in value.

With basically no one from the general population buying bitcoin or other cryptos, the bankers state that bitcoin went up a thousand dollars in the space of a few weeks.

The bankers can issue unlimited amounts of fiat currency and make the price of anything go up or down, including bitcoin.

As long as we allow the bankers to screw us.

The only solution is to abolish private for-profit banking.

ZIRPdiggler's picture

And, oh yeah........I can buy PM with my profits, if I should so choose.  Be a bad move in my opinion but I fail to see how I'm wrong...