TORONTO (Reuters) - Modernizing Canada's aging payments systems will help strengthen the stability and efficiency of the country's financial system and reduce systemic and liquidity risk, a senior official at the Bank of Canada said on Thursday.
In a speech that mentioned monetary policy only in passing, Deputy Governor Sylvain Leduc said that while the fast pace of technological change makes updating the high-value payment system challenging, inaction is not an option.
Leduc said a sound payments system is as important for the stability of the financial system as a reliable electrical grid is for the economy.
"While we are ready to consider different designs consistent with this vision, an RTGS (real-time gross settlement) system with liquidity-saving mechanisms may provide a relatively simpler and well-tested framework," Leduc said.
He later added that the ability to settle payments 24 hours a day is part of the bank's ultimate vision. Currently, payments are settled at the end of each day.
There seems to be a long term plan to move away from our banking system that has a 5 day window to confirm funds when transferred between banks to an instant system.
While superficially, it appears "efficient" to change in this manner, the motives behind the changes are quite the opposite.
In order to enact a completely digital currency, one must move to an instant setting system as is proposed with RTGS (highlighted in red). Only then can one completely eliminate physical cash.
Such a move would allow for easy raids on bank accounts by the Canada Revenue agency. Further, in the event of a global financial crisis, it would allow easy withdrawals for the government of the day to recapitalize the banking system.
A completely digital currency means absolute control of your money by the State or even a Supra National Entity like the IMF.
If the reader thinks this is an outrageous statement by some blogger in his pajamas, consider this report published by the IMF suggesting a 10% "net worth tax" to recapitalize the financial system published in 2013.
Note page 49 of the document entitled "One off capital levy". It clearly states that anyone with a positive net worth would be required to pay 10% of their wealth in the form of a levy (tax).
One of the great deceptions of Socialism is that it strives for equality amongst the nation's citizens.
This international organization, the IMF is a fine example of that deception. It uses its power to advantage the super wealthy by twisting the fabric of the monetary and financial systems. The primary role of Socialism is to extract wealth from regular citizens and concentrate it in the hands of about 700 ultra wealthy individuals giving them the power and influence to shape social thought through the media and public institutions.
Evidence of this can be seen in the dozens of failed socialist state experiments over the past 50 years.
Zimbabwe with its hyperinflation experience is an obvious candidate, as are many of the Central American and South American nations. Venezuela is a current example with its 700% inflation rate and broken social promises.
The thinking that led to these results has not changed. It is embedded in the ultra wealthy primary shareholders of major companies. It is ultimately totalitarian in its purest form.
To combat this, we must consider hard assets that are movable and difficult to tax or confiscate.
Unlike real estate in certain overvalued cities (Vancouver, Toronto, and Sydney come to mind), mobile hard assets are not easy to tax. Further, they tend to retain value much better than fiat dollars and euros.
In the end, hard assets like precious metals can be exchanged for needed goods or services. A digital currency regime is guaranteed to be abused by those who implement it.