Warning.
November 20, 2022.
On November 15, 2022, a group of U.S. banking interests led by the New York Federal Reserve issued a press release stating: “Members of the U.S. banking community today announced the launch of a proof of concept (PoC) project that will explore the feasibility of an interoperable digital money platform known as the regulated liability network (RLN). Using distributed ledger technology, the proposed platform would create innovation opportunities to improve financial settlements and would include participation from central banks, commercial banks of various sizes and regulated non-banks.”[1] The group’s announcement outlined the New York Innovation Center’s pilot program’s key aspects, which will, if executed, infringe upon Pegisai USA’s intellectual property. The press release raises a series of concerns. Pegisai USA questions the nine members of the banking community’s improper usage of the term “dollar”. Further, the Press Release appears to be the group’s direct intent to circumvent the national interests of the United States and the authority of the U.S. Congress, as well as Law.
Pegisai USA directly challenges the New York Innovation Center’s authority[2] to mint any form of digital currency or act to transact said “digital currency” without direct Congressional Authority.[3] Further, Pegisai challenges the “Federal Reserve’s authority” to make public policy decisions regarding the sovereign currency of the United States in its form, function, asset base, value, usage, or structure.
The Company warns:
1) The mentioned press release indicates the named banks’ intent to circumvent Congressional power and authority to regulate the dollar and other forms of “currency” issued under the auspices of the United States.
2) This collusive conduct represents a “clear and present danger” to the economic health of the United States and the Global Economy.
3) The power to “coin money”, as well as the power to “regulate the value thereof”, is limited to Congress in Art. I, sec. 8, cl. 6 of the United States Constitution.
4) Under our review, the NYIC’s PoC clearly states an intent to circumvent the sovereignty of other countries’ currencies. [4]
5) Pegisai USA is opposed to the usage of its technologies to conduct the pilot program or test, as stated in the NYIC press release.
6) Pegisai warns that the usage of its technologies by any party acting in the pilot program is in direct violation of Pegisai’s Intellectual Property Rights, and such infringement will not be tolerated.
As a major holder of intellectual property often misappropriated by the cryptocurrency and e-payment industries, Pegisai USA has stated its intent to stop the practices as stated in the NYIC’s press release and future proposals.
In the third quarter of 2022, Pegisai USA announced it was in the process of meeting requirements to release its AIDM Solution Product. The AIDM solution includes a tokenized asset-based, digital money using the Company’s intellectual property and meets existing international laws. Further, the Company’s products have already met the “instant payment” criteria as defined by the International Bank of Settlements.
Pegisai USA has a well-documented history of tracking abusive practices of the cryptocurrency industries, including partisan political efforts to violate federal law. Pegisai USA has previously stated its concerns pertaining to central bank-distributed crypto-currency CBDC including:
a) The Federal Reserve Act does not provide any of the governmental agencies directed by the Biden Administration, or indirectly influenced by the White House, such as the Federal Reserve, to engage in any of the conduct to create a “digital dollar” or U.S. CBDC.
b) The United States Constitution’s “money clauses” do not grant the Biden administration the authority to issue policies encouraging the issuance of CBDC.[5]
c) The United States Constitution’s “money clauses” limit the power of government directly to Congress.
d) Existing Federal Law, 31 U.S. Code § 5103 defines currency, and proposed changes including those within the NYIC’s PoC would require a Constitutional Amendment.
e) A U.S. CBDC and those that might arise from the NYIC PoC could only be determined to be a “bill of credit”, which is Constitutionally forbidden.
f) The US Constitution defines the “dollar” as “a silver coin containing 371.25 grains of pure silver”, and the United States lacks the silver supply necessary to mint a “digital dollar” based upon the asset value.
g) The US Constitution’s Ninth and Tenth Amendments and the obligation-of-contracts clause (Art. I, sec. 10, cl. 1) identify five monetary policies, none of which grant the authority to Congress, the Biden administration, or the New York Federal Reserve to enact a “digital dollar” or engage in “a central ledger”.[6]
h) The proposed “digital dollar” must be labeled a “security” under existing law. As such, the PoC, as stated within the Press release, is inadequate and misleading.
Pegisai USA Inc intends to vigorously challenge the Banks’ efforts to create another form of fiat currency, especially outside the observation and control of Congress and US Treasury. No party associated with the New York Federal Reserve or the New York Innovation Center made any attempt to obtain a right or license to utilize any technology owned by Pegisai USA in the pilot program. The Company will not issue licenses to any group that attempts to circumvent the law, no matter the form of such group or governmental entity. The Company advocates an apolitical decentralized issuance, audit, regulatory, and governance system to stabilize global trade and reduce acts of economic warfare. For more information on this topic: https://www.pegisai.com/post/why-central-bank-distributed-cryptocurrency-isn-t-a-good-thing
[1] https://www.businesswire.com/news/home/20221115005936/en/Members-of-the-U.S.-Banking-Community-Launch-Proof-of-Concept-For-A-Regulated-Digital-Asset-Settlement-Platform [2] Assuming said authority comes under the direction of the New York Federal Reserve as implied in the press release. [3] The sole authority to mint “dollars” is limited to the U.S. Department of the Treasury. [4] “Although the concept could potentially be extended to multi-currency operations and regulated stable coins.” Source: https://www.businesswire.com/news/home/20221115005936/en/Members-of-the-U.S.-Banking-Community-Launch-Proof-of-Concept-For-A-Regulated-Digital-Asset-Settlement-Platform. Dated Nov. 15, 2022 [5] Neither the “money clauses” nor the Federal Reserve act grant authority to the Federal Reserve, or other private banks to issue any form of dollar, digital or script. [6] “The 12-week PoC will test a version of the RLN design that operates exclusively in U.S. dollars where commercial banks issue simulated digital money or “tokens” – representing the deposits of their own customers – and settle through simulated central bank reserves on a shared multi-entity distributed ledger.” Source: https://www.businesswire.com/news/home/20221115005936/en/Members-of-the-U.S.-Banking-Community-Launch-Proof-of-Concept-For-A-Regulated-Digital-Asset-Settlement-Platform