A new report has raised concerns that African countries embracing the creation of Central Bank Digital Currency (CBDC) could risk falling victim to ‘currency colonization’.
The report also examined extensively, the rise of currency colonization in Africa.
The report is titled “CBCs Are Inevitable: A Warning About Currency Colonization In Africa”
The report co-authored by Samson Williams and George Pullen described CBDCs as “an existential threat to the sovereignty of African Nations”.
It accused China of attempting “currency colonization by way of its Debt Trap Diplomacy”.
This purported ” colonization”, the result states is being carried out through programmable money, which is also the CBDC.
“In late August 2022, China announced that it would be forgiving 23 loans tied to 17 African countries such as Tanzania, Zambia, Senegal, Botswana, and Burkina Faso, just to name a few.
“Should the 54 Nations that makeup Africa fall into this stage of China’s Debt Trap Diplomacy that is the CBDC Trap, China would in effect govern these Nations via their programmable money.
“Programmable money has the potential to be so much more than currency. Programmable money, like CBDCs real purpose, after all, isn’t to record records of debt. Rather, programmable money’s real purpose is to write the narrative of who owes what to whom.
“While the exact amount of loan forgiveness is unclear, what is not in question is China’s tradition of debt-trap diplomacy. China forgiving these loans is less about loan forgiveness and more about how China is positioning the Digital Yuan to become the default reserve currency of Africa, Asia, and other countries who have been lent money via China’s Belt and Road Initiative.
“CBDCs are inevitable from a Chinese perspective because they absolutely want the ability to track every financial transaction their citizens and their debtors make. CBDCs are inevitable from a US perspective because, to maintain its hegemony in the 5th Industrial Revolution in Space, on the ground, and beyond, the USD must go digital.
“Africa needs to beware that it does not get trampled under the boots of colonizers set on programming their money to colonize their currency.
According to the report, CBDCs were no newer than credit cards rather, “CBDCs are old ideas in new packaging.
“CBDCs are no different than any type of electronic cash because CBDCs are as money has always been just another mode to record records of debt. In other words, CBDCs are digital IOUs tracked by a Central Bank. Which, once you think about how traditional fiat or paper money works, isn’t actually all that new of an idea. The nuance to CBDCs and traditional paper money is that, unlike fiat paper money, CBDCs are programmable money. Programmable money gets a little weird because when a Central Authority can program money, it becomes less of a record of debt and more of a weapon of mass destruction.”