Why NO To e₹?

CBDC – Centralized Banking Digital Currency
e₹ – eRupee or Digital Rupee

CBDC to end personal liberties. Last call to Indians.

CBDCs are the last nail in the coffin; once implemented there will be no freedom

“Money is probably the most successful story ever told. It has no objective value… but then you have these master storytellers: the big bankers, the finance ministers… and they come, and they tell a very convincing story.” – Yuval Noah Harari.

To understand how we will all come to accept a central bank digital currency…

Q 1. What is Digital Rupee or e₹ (RBI issued CBDC)?

Digital Rupee or e₹ is a Central Bank Digital Currency (CBDC), the digital form of the existing Indian Currency Notes, being issued by central bank of India (i.e. RBI).

Reserve Bank of India (RBI) broadly defines CBDC as “the legal tender issued by a central bank in a digital form. It is akin to sovereign paper currency but takes a different form, exchangeable at par (1:1) with the existing currency and shall be accepted as a medium of payment, legal tender and a safe store of value. CBDCs would appear as liability on a central bank’s (i.e. RBI) balance sheet.”

Refer to “Concept Note On Central Bank Digital Currency” issued by RBI on 07.10.2022– https://m.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1218

Bank of International Settlements (BIS) defines “CBDCs as new variants of central bank money different from physical cash or central bank reserve/settlement accounts. That is, a central bank liability, denominated in an existing unit of account, which serves both as a medium of exchange and a store of value”. BIS also says that it is “challenging to precisely define what a CBDC is”. So BIS says “it is easier to define a CBDC by highlighting what it is not”.

Refer to BIS’s CPMI-MC Report of 2018 – https://www.bis.org/cpmi/publ/d174.pdf

Q 2. What is difference between Digital Rupee/ e₹ (RBI issued CBDC) and ₹/ INR i.e. Indian Fiat Currency (in circulation since last 80 years)?

Digital Rupee/ e₹ is issued by RBI, only in digital form, and so it cannot be held or transacted (paid/ received) in physical cash form. While ₹ or INR, the RBI issued Indian fiat currency, can be held and transacted in both electronic/ digital as well as physical cash form.

For completion of transaction, Digital Rupee/ e₹ is dependent on availability of electric power, internet and smart device, if done in online mode; or, electric power, smart device and facial/ retina/ finger biometrics, if done in offline mode. On the other hand, completion of transaction of ₹ or INR does not depend on availability of any other product/ service if, done in the form of physical cash.

Availability of reasonable anonymity, if transacting in Digital Rupee/ e₹, is misconceived/ fallacy, even for small value transaction. Whereas, transactions in physical cash form, in case of ₹ or INR, are completely anonymous; and if done via bank accounts, its anonymous too, unless not of high value or causing high turnover in the account.

Digital Rupee/ e₹ is a programmable currency, meaning it can be designed for specific need, purpose, place, time, etc. and can be deactivated by central bank/ government at any time or place, or for making payment for a set of product/ service. Digital Rupee/ e₹ can also have expiry date, after which it cannot be used. If permission (usually real-time) provided by the central bank (RBI) is withdrawn for a particular individual, product/ service, place, time, etc., the transaction cannot be done/ completed. However, ₹ or INR in its physical cash form, cannot be programmed once printed and released in circulation by a bank (unless it is not demonetized); and hence, permission of any bank or third party is not at all required if transaction is made in physical cash form.

Digital Rupee/ e₹ can be held and transacted in offline mode only for small amounts. While ₹ or INR can be held and transacted in offline mode for larger amounts (that too in physical cash form).

Holding of Digital Rupee/ e₹ in account/ wallet does not provide interest benefit; while holding ₹ or INR in bank account, does provide interest as benefit.

Q3. Why some people are critical and worried about Digital Rupee or e₹?

Few aspects of Digital Rupee/ e₹ are not clear and its implementation is being hushed and hurried up! Few people are asking pertinent questions for which there are no clear answers. Just like GST was rushed and people struggled, CBDCs are being rushed without considering the entire population of the country many many among who, have no understanding of the technology behind such initiatives. Even the bureaucrats who are part of this implementation do not fully understand what is happening. That is why and for many more reasons, Digital Rupee/ e₹/ CBDCs or e-Rupee is very concerning.

A few unique features which are very alarming:

  1. It is unlike any other mode of transaction, money, or any physical method like cards, etc. that we know of. There is nothing to touch, to store, to put away or even see like physical cash or a credit card. All we will get is a count or a number of units on an App on a mobile.
  2. It is not universally accessible by anyone and everyone whether they have access to and knowledge of technology. It requires a mobile, a SIM, an internet pack (connectivity like 4G and above), electricity to charge the mobile, and regular service charges to mobile operators for our banking activities and using our “money” and regular payment to electricity provider for using our “money” and for accessing their services, at any cost which they decide. Thus, we will not be in charge of our “money” – but will be dependent on two more service providers just to access the fruits of our sweat.
  3. It is an exclusion based network, and un-friendly for people with weak eyesight, dementia, paralysis, age related infirmities, diabetic neuropathy, trembling, have an eye operation (blindness or retinal scarring), or arms amputated, deep cuts and wound in the finger, and fading lines on fingers, callouses and for people with palm psoriasis. Most dangerous in winter when the skin starts peeling off – since people will have to prove that they are the owners of their biometrics.
  4. It doesn’t allow for human errors.
    There are so many simple ways in which people may not be able to prove their identity.
    a. They can lose/misplace their mobile.
    b. The system will not work and there maybe glitches
    c. The network may not be available.
    d. They’ve not paid their phone bill.
    e. There is a dispute regarding their identity theft (someone has hacked their Digital ID).
    People may have million worries and they will may suddenly have no money or anyway to fight against the system or to use their money in any way.
  5. It punishes people for being robbed and thrashed. Imagine being a victim of pickpocket or the thrashing in hands of political goons in any area. If we don’t agree with the local authorities BMC, Goonda, politician, bureaucrat we can lose our identity. Situation will be such that we could afford to lose our life, but not our phone. Even if we have our life how will we survive without “money”?
  6. It opens doors for extortion, bribery, and corruption. It forces us to be at the mercy of corrupt bureaucrats in government services and be fleeced by mobile operators and all in the chain of service providers. They can simply turn off our SIM. (It happens even now). They will make us run around and stand like a criminal and take our photo for our KYC, against our will.
  7. e-Rupee doesn’t honour death (till the Government chooses to). Should one die, and there is no one to call in their family, their own money ceases to exist. It may not be passed on to the next of kin or one’s children. Even one’s parents or spouse will not have any money in cash to complete for their final rites.

Digital Rupee or e₹ (or CBDC) Is Not Money. What Is It?

  1. It is a TOKEN like SODEXO or coupons.
    it is restrictive in its use.
  2. It is not about saving. It is a token to spend.
    And you get to spend as per RBI’s wish.
  3. It has 2 more direct but invisible” decision makers. You are not one of them.
    One is JIO/Airtel/VI, the other is your electricity provider
    They turn off the SIM, or the electricity, then your mobile is inaccessible, and so also is your CBDC.
  4. CBDC comes with expiry. Atleast China, the CBDC country has shown that.
    Your 1 million CBDC will be zero after a certain date.
  5. You can’t buy even a lozenge for your child, if the lozenge seller has no mobile.
  6. Your money cannot be hacked but your CBDC can be.
  7. Should someday, you chose to leave it all, and purchase an obscure land to settle, you can’t.
    The purchase needs CBDC.
  8. Because of CBDC, you will have to take your mobile to your deathbed. You will have to divulge your PIN and entire mobile content to unknown strangers…just so that you can access your CBDC.
  9. Since a real-time high frequency device is necessary for CBDC, you will be hooked forever to a 5G EMF grid and exposed to killer radiation. You can’t escape it.

CBDC is not money.
It is a cancer causing EMF, that decides how you live and how long.


Why central banks should not push ahead with CBDCs?

Author- Tony Yates, former professor of economics and senior adviser at the Bank of England
Published on Financial Times

•The huge undertaking of digital currencies is not worth the costs and risks. Many of the motivations for doing it are very poor and there are a lot of risks. The author urges central banks not to proceed with CBDCs.

•Strictly speaking, almost every country already has one digital currency. The old name is “electronic or central bank reserves”. These are the digital things — entries in the central bank equivalent of a spreadsheet — that central banks lend to or borrow from their counterparties, the retail banks that have you and I as customers.

•The things pivotal to that “reserve currency” status in the future are not whether a state has CBDC or not. It is more the institutional health of the sponsoring country and whether they are good for their debt.

•One motivation cited (for CBDC) is to head off the threat from cryptocurrencies such as bitcoin or similar. This is also not a good reason. Cryptocurrencies are such bad candidates for money. They don’t have money supplies managed by humans to generate steady paths for inflation and are hugely expensive and time consuming to use in transactions. They can also be dealt with through laws and regulations, not cajoling the central bank to provide a wholly new competitor asset.

•CBDC advocates discuss the possible benefits of “financial inclusion”, but the most practical way of doing this – contracting out to banks to provide app-based access for CBDCS- entails familiar issues: an association with banks, the need for IT literacy etc.

•The most compelling arguments are about payments and settlement efficiency, reducing the percentages of national income that are lost to the providers of payment and settlement services. But here too the debate is mysterious. It would be a colossal undertaking for the central bank to employ the staff to build and manage the hardware and the software of a new payments system – tens of thousands probably. So this will be contracted out to the private sector – not everyone’s ideal construct. If there are efficiency wonders to be had in terms of systems, what is it about CBDCs that cannot be got through existing ones? If the major players are taking too big a cut in the payments business, why not just tax the excess away?

•CBDCs do have other “advantages”. If you allowed interest on the accounts, you could use the interest rate to sharpen the transmission of monetary policy into the economy. If you combined CBDCs with actually abolishing cash, you could charge negative rates so during a really bad recession the economy is stimulated by the spending of savings. In crises, the government could use CBDC accounts to “zap” money to people. But these advantages are not worth such a rise in running costs and reputational risks.

•CBDC accounts may drain money from the banks, particularly during a period of heightened financial risk. This would force banks either to find new sources of funds, or shrink their loans. That could amplify tightening in financial conditions when the central bank is trying to loosen them. The central bank could respond by simply reinvesting CBDC deposits back in the banks. But would this leave us in a better place? We’d have moved from a situation where the government stands behind the banks and takes a stake when things go badly; to one where it is on the hook all the time to the tune of the deposits reinvested.

Why central banks should not push ahead with CBDCs | Financial Times

How the Governments will attempt to gradually bring people into a digital monopoly of CBDC, as legal tender?

There is a chain, of which CBDC is the grand finality.
Bank – KYC – ATM- OTP – Mobile – 5G grid – CBDC.

They are not saying CBDC is exclusive, because, twists and tweaks in that chain will finally bring the herd to CBDC.

In any case, Banks have become a must, and banking system is a must now. This has been 100 percent achieved.
Once people have no option but to deposit all their money in banks, then came KYC. It is also 100 percent achieved.

So an exclusive lock to economics has already been put in place.
Now comes ATM, OTP and Mobile. Pandemic has forced people onto mobile platforms and hence OTPs. Simultaneously, ATMs are deliberately made “out of order” for days and weeks.

The 5G grid also comes with a “5G” update and SIM. Those will allow you only “exclusive” channels in case of a “cyber attack”.
5G system is not only about latency and bulk of data. The Grid is also about domination of entire wavelengths and frequency, and to turn them on and off as per convenience.

With the entire range of selection, they are slowly herding all into CBDC. They don’t even have to explicitly impose it upon us.

They just need to keep it operational as an alternative.

The media reporting such as the Financial Times article shared above is guided by AI algorithm. AI choses a carrot and stick approach and uses it as per the people’s resilience that the system catches, analyses, and subsequently decides the next moves.

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