U.S. Government issued Central Bank
Distributed Cryptocurrency (CBDC) Warning.
April 20, 2022
On March 9, 2022 the Biden Administration issued an executive order stating the Biden administration’s “policy and actions related to United States Central Bank Digital Currencies[1]. Section 4. (d) subsections (i) and (ii) of the Executive order place directives upon the Attorney General of the United States, the Secretary of the Treasury and the Chairman of the Federal Reserve to assess legislative changes necessary to issue a United States CBDC. Recently, the Company has observed the Biden administration’s directives attempting to create and issue “programmable digital currencies” to replace the printed US. Dollar. The Company has reviewed information which includes the conduct of officials who seek to obtain unlawful powers through the proposed US CBDC; such as the “ability to limit the amount an end-user could hold”.
The Company warns:
1) The Biden Administration is attempting to circumvent Congress and the United States Constitution exceeding presidential authority.
2) The conduct of various agencies represents a “clear and present danger” to the economic health of the United States and 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) The proposed CBDC’s “programmability” destroys trust elements required for financial transactions in global trade.
5) Existing digital currency’s structure causes them to suffer from multiple trust and surety issues which prohibit their widespread adoption as a mechanism of exchange. The proposed US Gov. CBDC will be no different.
6) The Biden administration’s conduct is nothing more than executive fiat and is inherently an abuse of power.
As a major holder of intellectual property used within the cryptocurrency and e-payment industries, the Company is tracking partisan political efforts to violate federal law. These attempts appear to be nothing more than a direct attack on the most sacred rights of every human, the right to own and hold property.
Further issues of concern based upon the conduct of the Biden Administration include:
a) The Federal Reserve Act does not provide for any of the agencies directed by the Biden Administration to engage in any of the conduct as directed.
b) The United States Constitution’s “money clauses” do not grant the administration the authority to issue the policies within the executive order.
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, any proposed changes would require a Constitutional Amendment.
e) A US CBDC 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 the Biden Administration or Congress to make the proposed changes converting the US economy from a printed dollar to a digital dollar.
h) Any CBDC would have to be regarded as a “security” under existing law, as such the Biden administration proposed review is insufficient, no matter what outcome.
Pegisai USA Inc intends to vigorously challenge the Biden Administrations efforts, not only on a constitutional basis, but also with regard to intellectual property infringement. The Company will not issue licenses to any group which attempts to circumvent 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.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/