WATCH OUT!! Cashless Society is Closer Than You Think!
Published: 2023-11-11
Status:
Available
|
Analyzed
Published: 2023-11-11
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The launch of Facebook's Libra in 2019 prompted central banks to accelerate their efforts in developing and promoting CBDCs, especially after the pandemic provided justification for cashless initiatives.
"2019 was when Facebook unveiled its Libra stablecoin project at that moment the central banks realized they'd lose control of the increasingly unstable Financial system if they allowed a private currency to take over one year later the pandemic began and the resulting restrictions conveniently made made it possible for central banks and governments to justify going cashless as much as it was possible to do so this is also when they started pushing CBDCs and you can see this on Google search Trends searches for CBDCs have gone parabolic ever since"
Pending
Bitcoin is identified as a highly decentralized cryptocurrency.
"some cryptos like Bitcoin are very decentralized"
Pending
Sweden's goal of becoming completely cashless by March of the current year (2023, given the context of the video published in late 2023) was not achieved.
"Sweden was expected to become completely cashless by March of this year and it seems to have missed the mark by quite a margin."
Pending
Governments in large economies like the US and EU may eliminate cash through a combination of inflation and high interest rates, making it financially unappealing to hold physical cash.
"The US the EU and others will need to find some way to get rid of cash. We've long believed that the only way you can get rid of cash in these countries is to inflate it away to make the cash in circulation worthless to the point that there's no point in holding it however we're starting to think that it could be a combination of inflation and incentives via interest rates."
Pending
Sustained high interest rates, combined with inflation, will incentivize large holders of physical cash to deposit it in banks to earn yield.
"Take a second to consider that interest rates are at their highest levels in decades assuming they stay this high or even go higher then it will eventually incentivize large holders of physical cash to go to the bank and earn a yield on their massive cash pile particularly if there's lots of inflation too"
Pending
Sweden's transition to a cashless society involved replacing all existing currency with new notes and coins and reducing the availability of ATMs, particularly in rural areas.
"The Swedish Central Bank announced that all coins and cash notes needed to be exchanged for new ones... at the same time Sweden's Mega Banks started dismantling ATMs around the country especially in rural communities where cash was being used the most."
Pending
The convenience of cashless payment systems will lead to their voluntary adoption, but the danger lies in the imposition of controls, which may only become apparent to individuals when it's too late.
"The scariest part is that the average person won't realize this until it's too late as we mentioned in our video about fast payment systems these cashless payment methods are just too convenient they will be voluntarily adopted and it's only when controls are imposed that people will realize their fatal error"
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Bitcoin is highlighted as a highly decentralized cryptocurrency.
"some cryptos like Bitcoin are very decentralized"
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Nigeria is actively trying to force the adoption of its eNaira CBDC by restricting cash usage.
"The country that comes to mind here is Nigeria where the government is trying to force the adoption of its enira cbdc by restricting cash use."
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Scandinavia, specifically Sweden, is identified as a leading region in the transition to a cashless society.
"The answer seems to be those in Scandinavia starting with Sweden."
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Sweden has been pursuing a cashless society agenda since the early 2000s.
"Sweden has been trying to go cashless since the early 2000s."
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By 2019, 50% of Swedish bank branches no longer handled cash.
"by 2019 only half of Bank branches worked with cash"
Pending
The Swedish Central Bank's announcement in 2015 requiring the exchange of all coins and cash notes for new ones led to a significant drop in cash usage.
"Sweden's use of cash really fell off a cliff this was because the Swedish Central Bank announced that all coins and cash notes needed to be exchanged for new ones"
Pending
Less than 10% of sales in Sweden are conducted in cash, which is the lowest rate globally.
"today less than 10% of all sales are made in cash in Sweden the lowest level in the world"
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Sweden's goal of becoming completely cashless by March of the current year (2023, based on video publication date) was significantly missed.
"Sweden was expected to become completely cashless by March of this year and it seems to have missed the mark by quite a margin"
Pending
The Netherlands is also progressing towards a cashless society, similar to Scandinavia, with trust in government being a key factor.
"The same seems to be true of the Dutch which explains why the Netherlands is headed in a similar direction"
Pending
The convenience of cashless payment methods will lead to their voluntary adoption by individuals.
"As we mentioned in our video about fast payment systems these cashless payment methods are just too convenient they will be voluntarily adopted"
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Steps to make cash access difficult include removing ATMs, establishing cashless bank branches, and creating hurdles for cash transactions at banks.
"it will also involve removing ATMs introducing cashless Bank branches and making it very difficult to deal with cash at the bank"
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A combination of inflation and interest rate incentives might be used to drive cash out of circulation.
"we're starting to think that it could be a combination of inflation and incentives via interest rates"
Pending
High interest rates and inflation could encourage cash to be deposited into banks, paving the way for forced currency exchange to eliminate remaining cash.
"this would cause cash to flood into Banks once enough cash is in the bank they can get rid of the rest with forced currency exchange"
Pending
Individuals can prepare for a cashless society by advocating for legal rights to cash access and by utilizing decentralized and private cashless payment systems.
"enshrine access to cash in law and use utopian cashless Payment Systems instead"
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The shift to cashless transactions is inevitable due to circumstances and convenience, irrespective of legal protections for cash.
"going cashless is inevitable given the circumstances regardless of the laws people will naturally stop using cash"
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Central banks intend to implement limits on savings and spending with CBDCs, contrasting with cryptocurrencies which are purportedly decentralized.
"central banks have stated their intentions to do things like set limits on saving and spending on the decentralized side of the spectrum meanwhile you have cryptocurrencies which are supposedly not controlled by anyone"
Pending
Facebook's Libra project in 2019 alerted central banks to the potential loss of control over the financial system if private currencies gained prominence.
"2019 was when Facebook unveiled its Libra stablecoin project at that moment the central banks realized they'd lose control of the increasingly unstable Financial system if they allowed a private currency to take over"
Pending
Following the pandemic, there was an increased push for CBDCs, evidenced by a parabolic rise in Google searches for the term.
"This is also when they started pushing cbdcs and you can see this on Google search Trends searches for cbdcs have gone parabolic ever since"
Pending
Any cashless solutions that challenge CBDCs will face significant restrictions from governments and central banks, potentially leading to the dominance of CBDCs.
"any kind of cashless solution that competes with cbdcs will be significantly restricted by governments and central banks and it would be game over if cbdcs were adopted instead"
Pending
Cryptocurrencies, like Bitcoin, are on the decentralized end of the payment spectrum and are largely not controlled by any single entity.
"On the decentralized side of the spectrum meanwhile you have cryptocurrencies which are supposedly not controlled by anyone but this really depends on which cryptos we're talking about some cryptos like Bitcoin are very decentralized"
Pending
Many cryptocurrencies, unlike Bitcoin, are highly centralized and capable of imposing controls similar to CBDCs.
"most other cryptos are almost as centralized as cbdcs and can impose the same controls"
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The public visibility of most cryptocurrency transactions poses a risk to financial freedom.
"most cryptocurrency transactions are also publicly viewable which can threaten Financial Freedom"
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Decentralized digital currencies, including some cryptocurrencies, offer a non-dystopian cashless society alternative because they cannot be controlled by any single entity.
"if it's done using decentralized digital currencies that can't be controlled by anyone such as some cryptocurrencies"
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Cash usage in Sweden began a decline after 2008 and significantly decreased starting in 2015.
"cash use in Sweden started declining after that but it wasn't until 2015 that Sweden's use of cash really fell off a cliff"
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The Swedish Central Bank's initiative to exchange old currency for new in 2015 was ostensibly to combat counterfeiting.
"the Swedish Central Bank announced that all coins and cash notes needed to be exchanged for new ones can you guess the excuse that's right to fight crimes specifically counterfeiting"
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Simultaneously, Swedish banks began removing ATMs, particularly in rural areas where cash usage was highest.
"at the same time Sweden's Mega Banks started dismantling ATMs around the country especially in rural communities where cash was being used the most"
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The combined actions of the Swedish Central Bank and major banks made obtaining cash extremely difficult.
"the practical effect of this was that cash became almost impossible to get hold of"
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Swedish banks are actively scrutinizing cash transactions, with some refusing to accept it or even confiscating it from clients, all under the guise of crime prevention.
"Swedish Banks continue to scrutinize cash transactions regardless of the amount some have refused used to accept cash and others have confiscated it from clients all in the name of fighting crime"
Pending
An emergency preparedness guide issued by the Swedish government advised citizens to always keep some cash on hand.
"the Swedish government once put out an emergency preparedness guide that included an instruction to always keep some cash on hand"
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Sweden's projection to be fully cashless by March of the current year (2023) was not met, falling significantly short of the target.
"for what it's worth Sweden was expected to become completely cashless by March of this year and it seems to have missed the mark by quite a margin"
Pending
Citizens in Sweden, Norway, Denmark, and Finland generally trust their respective governments.
"swedes Norwegians Danes and fins all trust their governments"
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Since abandoning the gold standard in 1971, currency has been fiat, meaning it is not backed by a physical commodity like gold.
"since that time though currency has been backed by well nothing"
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The lack of a gold backing for currency has led to increased instability in the financial system.
"the consequence of this is that the financial system is becoming more unstable"
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The abandonment of the gold standard enabled unlimited currency creation, resulting in more volatile economic boom and bust cycles.
"abandoning the gold standard made it possible to create unlimited amounts of currency this has made the boom and bus cycle of the economy much more volatile"
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After the 2008 financial crisis, central banks recognized the financial system's instability and began seeking solutions.
"following the 2008 financial crisis however central banks realized just how unstable the financial system was and started looking for Solutions"
Pending
Many solutions proposed by central banks after 2008 involved implementing restrictive regulations that increased centralization within the financial system.
"most of these involved introducing restrictive regulations that further centralized the financial system"
Pending
The United States, the EU, and other major economies will need to implement measures to eliminate cash.
"The US the EU and others will need to find some way to get rid of cash"
Pending
A long-held belief is that inflation will be used to devalue cash, making it pointless to hold and thus facilitating its removal from circulation in countries like the US and EU.
"We've long believed that the only way you can get rid of cash in these countries is to inflate it away to make the cash in circulation worthless to the point that there's no point in holding it"
Pending
A new hypothesis suggests that a combination of inflation and interest rate incentives might be the mechanism for eliminating cash.
"however we're starting to think that it could be a combination of inflation and incentives via interest rates"
Pending
Current high interest rates, especially if they increase further, combined with inflation, will incentivize large cash holders to deposit their funds in banks to earn yields.
"interest rates are at their highest levels in decades assuming they stay this high or even go higher then it will eventually incentivize large holders of physical cash to go to the bank and earn a yield on their massive cash pile particularly if there's lots of inflation too"
Pending
The current economic climate suggests a potential return to higher inflation and interest rates, which would likely lead to a significant influx of cash into banks.
"we could very well be entering a world of higher inflation and higher interest rates again this would cause cash to flood into Banks"
Pending
Once a substantial amount of cash is deposited in banks, the remaining cash can be eliminated through forced currency exchanges.
"once enough cash is in the bank they can get rid of the rest with forced currency exchange"
Pending
Financial freedom is defined not by wealth accumulation but by the control individuals have over their assets and their ability to decide how and when to spend them.
"Financial Freedom doesn't mean having lots of money Financial Freedom Freedom means being in control of your assets and deciding when and how they are spent"
Pending
Financial freedom is diminishing within the digital financial system and will vanish entirely in a cashless society, unless that society is built on decentralized and private systems.
"this is something that is slowly disappearing from the digitized financial system and it will be completely gone if we go cashless that is unless the cashless solution is decentralized and private"
Pending
Central banks began actively supporting the cashless society concept around 2019.
"it seems it wasn't until 2019 that the central banks got on board with the cashless Society idea"
Pending
The launch of Facebook's Libra stablecoin in 2019 prompted central banks to recognize the threat to their control over the financial system posed by private currencies.
"2019 was when Facebook unveiled its Libra stablecoin project at that moment the central banks realized they'd lose control of the increasingly unstable Financial system if they allowed a private currency to take over"
Pending
The pandemic, starting in 2020, provided a convenient justification for central banks and governments to push for cashless measures.
"one year later the pandemic began and the resulting restrictions conveniently made made it possible for central banks and governments to justify going cashless as much as it was possible to do so"
Pending
The increased promotion of CBDCs coincided with the pandemic, leading to a significant surge in related Google searches.
"This is also when they started pushing cbdcs and you can see this on Google search Trends searches for cbdcs have gone parabolic ever since"
Pending
Despite efforts by various financial institutions, cash usage in most countries has nearly returned to pre-pandemic levels.
"central banks commercial Banks and card payment processes cash use is almost back at its pre-pandemic levels in most countries"
Pending
Following the 2008 financial crisis, central banks identified the instability of the financial system and began seeking resolutions.
"central banks realized just how unstable the financial system was and started looking for Solutions"
Pending
A primary response from central banks post-2008 involved implementing restrictive regulations to increase the centralization of the financial system.
"most of these involved introducing restrictive regulations that further centralized the financial system"
Pending
The United States, the European Union, and other major economies are expected to seek methods to eliminate physical cash.
"The US the EU and others will need to find some way to get rid of cash"
Pending
It is theorized that a combination of inflation and interest rate incentives could be used to phase out cash.
"we're starting to think that it could be a combination of inflation and incentives via interest rates"
Pending
A scenario is proposed where high interest rates and inflation lead to a surge of cash deposits in banks, enabling the elimination of remaining cash through forced exchange.
"this would cause cash to flood into Banks once enough cash is in the bank they can get rid of the rest with forced currency exchange"
Pending
During the pandemic protests in Canada, banks froze the accounts of protesters at the government's request.
"the pandemic protests in Canada early last year when Banks froze the accounts of protesters at the request of the government"
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Canada's banking system is highly centralized, with five major banks dominating most financial activities.
"Canada has an extremely centralized banking system with only five banks controlling most banking activities"
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Digital payment methods such as cards, phones, and QR codes offer greater convenience than physical cash.
"cashless payments by card phone or QR code are simply more convenient"
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Western Union made the first electronic payment in 1871.
"the first electronic payment was made by Western Union in 1871"
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Credit and debit cards are currently the most prevalent methods for digital payments.
"the most popular form of digital payments are done via credit or debit card"
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Bank of America issued the first credit card in 1958, predating the first debit card from the Bank of Delaware in 1966.
"the first credit card was issued by the Bank of America in 1958 but the first debit cards didn't come until 1966 from the bank of Delaware"
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Cashless payment options encompass a range from cryptocurrencies to Central Bank Digital Currencies (CBDCs).
"there are many different types of cashless payments ranging from cryptocurrencies to Central Bank digital currencies or cbdcs"
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Edward Bellamy, in his 1888 book, envisioned a cashless society that utilized credit cards, mentioning the term repeatedly.
"the cashless Society that Edward Bellamy envisioned back in 1888 replaced cash with credit cards and he actually used the term credit card 11 times in his book"
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Bellamy's envisioned credit cards functioned similarly to debit cards, with the government distributing a set amount of credit to citizens periodically.
"the catch is that the credit cards he envisioned worked more like debit cards with the government periodically giving all citizens the same amount of credit to spend"
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With credit and debit cards, customers have the option to switch banks or card providers if their current provider restricts certain transactions, like purchasing cryptocurrency.
"take credit cards and debit cards for example if your bank or card provider decides to say prevent you from buying crypto then chances are that you can change Banks or card providers"
Pending
Visa and Mastercard's initial decision to track all gun purchases in the US, later reversed in March of the current year, serves as a prominent example of card provider control.
"the most infamous example of this on the card provider side meanwhile is Visa and mastercard's decision to start tracking all gun purchases in the United States a decision they decided to undo in March this year"
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The countries most likely to become fully cashless are in Scandinavia.
"this begs the question of which countries will be the first to go fully cashless well the answer seems to be those in Scandinavia"
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The Swish phone payment system, introduced in 2012, facilitated the transition to cashless payments in Sweden.
"like the swish phone payment system in 2012"
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By 2019, debit cards became available to children as young as six in Sweden.
"by 2019 children aged six and older could get a debit card"
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The inherent convenience of cashless payment methods will lead to their voluntary adoption by the public.
"cashless payments are just too convenient they will be voluntarily adopted"
Pending
Two key strategies for navigating the cashless transition are to legally protect cash access and to utilize decentralized and private cashless payment systems.
"the answer is twofold enshrine access to cash in law and use utopian cashless Payment Systems instead"
Pending
Advocating for and using 'utopian' cashless payment systems is presented as a way to avoid a dystopian cashless future.
"utopian cashless Payment Systems"
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A cashless society can be utopian if it utilizes decentralized digital currencies, like certain cryptocurrencies, which are not subject to control by any single entity.
"it can be something closer to utopian if it's done using decentralized digital currencies that can't be controlled by anyone such as some cryptocurrencies"
Pending
A significant drawback of cryptocurrencies, referred to as an 'Achilles heel', is that all transactions are traceable.
"as I mentioned earlier though crypto has an Achilles heel and that's that all transactions are traceable"
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Financial privacy is a necessary component for achieving financial freedom.
"for those unaware Financial privacy is required for Financial Freedom"
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Edward Bellamy, an American author, is believed to have first described the concept of a cashless society in his 1888 book, 'Looking Backward'.
"it's believed that American Author Edward Bellamy was the first to describe the idea in his book Looking Backward in 1888"
Pending
Edward Bellamy's 1888 vision of a cashless society involved the use of credit cards, a term he utilized 11 times in his book.
"the cashless society that Edward Bellamy envisioned back in 1888 replaced cash with credit cards and he actually used the term credit card 11 times in his book"
Pending
Bellamy's concept of credit cards in his envisioned cashless society functioned more like debit cards, with the government providing a fixed amount of credit to all citizens periodically.
"The Catch is that the credit cards he envisioned worked more like debit cards with the government periodically giving all citizens the same amount of credit to spend"
Pending
The implementation of cashless societies, depending on its execution, could lead to the cessation of financial freedom.
"depending on how this is done it could mean the end of Financial Freedom"
Pending
The public nature of most cryptocurrency transactions poses a threat to financial freedom.
"publicly viewable which can threaten Financial Freedom"
Pending
Financial freedom is defined as having control over one's assets and the autonomy to decide when and how they are spent, rather than simply possessing a large amount of money.
"Financial Freedom doesn't mean having lots of money Financial Freedom Freedom means being in control of your assets and deciding when and how they are spent"
Pending
Financial freedom is gradually eroding in the digital financial system and will be entirely lost in a cashless society unless the system is decentralized and private.
"this is something that is slowly disappearing from the digitized financial system and it will be completely gone if we go cashless that is unless the cashless solution is decentralized and private"
Pending
The Netherlands is following a similar path towards a cashless society, attributed to the Dutch people's trust in their government.
"The same seems to be true of the Dutch which explains why the Netherlands is headed in a similar direction"
Pending
The pandemic and its associated restrictions provided a convenient justification for central banks and governments to promote cashless policies.
"one year later the pandemic began and the resulting restrictions conveniently made made it possible for central banks and governments to justify going cashless as much as it was possible to do so"
Pending
In most countries, the use of cash has largely returned to its pre-pandemic levels.
"cash use is almost back at its pre-pandemic levels in most countries"
Pending
This refers to the pandemic-related protests that occurred in Canada in the early part of the previous year (2022).
"the pandemic protests in Canada early last year"
Pending
Visa and Mastercard decided to track all gun purchases in the US, a move they later reversed in March of the current year.
"Visa and mastercard's decision to start tracking all gun purchases in the United States a decision they decided to undo in March this year"
Pending
Visa and MasterCard together issue over 80% of the credit cards used in the United States.
"visa and MasterCard issue more than 80% of credit cards in the US"
Pending