WEBVTT - The Mark Moss Show Nov 16, 2022 0:00:00.080 --> 0:00:02.720 Hello, and welcome to another episode of The Mark Moss Show, 0:00:02.720 --> 0:00:05.600 where we talk about the decentralized revolution each and every week, 0:00:06.200 --> 0:00:09.000 of course looking at through the lens of politics, finance, 0:00:09.320 --> 0:00:13.240 and technology, and the technology of course being bitcoin and 0:00:13.240 --> 0:00:16.799 cryptocurrencies that are changing the world. And boy, there's a 0:00:16.920 --> 0:00:20.439 lot going on at the intersection of that. That's where 0:00:20.440 --> 0:00:23.360 we like to focus. And we can see the intersection 0:00:23.400 --> 0:00:28.360 of that today from all the political side, the financial side, 0:00:28.560 --> 0:00:31.920 and the technology side. And specifically I'm talking about some 0:00:31.960 --> 0:00:35.800 news that came out this week from the European Central Bank, 0:00:37.040 --> 0:00:39.680 the Euro, the European Central Bank. And if you're listening 0:00:39.680 --> 0:00:41.400 to this in ther United States, you're saying, well, what 0:00:41.440 --> 0:00:43.559 the heck do I care about the Euro? Well, you 0:00:43.600 --> 0:00:46.080 care about the Euro because obviously our markets are very connected. 0:00:46.080 --> 0:00:48.480 You also care about it because what's happening over there 0:00:48.880 --> 0:00:50.920 is that kind of like a smaller test bed of 0:00:50.960 --> 0:00:53.760 what will probably be tried over here at some point. 0:00:54.240 --> 0:00:57.880 And I think it also illustrates exactly what's happening and 0:00:58.000 --> 0:01:01.080 where things are going. So um, the e c B 0:01:01.240 --> 0:01:04.040 European Central Bank, met this week the head of the 0:01:04.040 --> 0:01:08.399 European Central Bank, the ECB, Christine Lagarde, who by the way, 0:01:08.480 --> 0:01:11.280 is a convicted criminal and she's still in charge of 0:01:11.319 --> 0:01:14.320 the European Central Bank. She's previously of the i m 0:01:14.400 --> 0:01:17.600 F International Monetary FUM. They met this week to talk 0:01:17.640 --> 0:01:22.959 about the Digital Euro, a common European project. So we 0:01:23.000 --> 0:01:27.000 talked a lot about money going digital. Uh, and of 0:01:27.040 --> 0:01:29.800 course we talked about cryptocurrency. So there's the bitcoin et cetera, 0:01:29.920 --> 0:01:32.160 and then we have the governments that want to try 0:01:32.160 --> 0:01:34.759 to control it and are using something called central bank 0:01:35.000 --> 0:01:39.040 digital currencies. So the digital Euro or a central bank 0:01:39.040 --> 0:01:41.479 digital currency is what we're talking about. And I wanted 0:01:41.520 --> 0:01:43.080 to kind of highlight some of the things that they 0:01:43.080 --> 0:01:45.720 talked about in this meeting. We know that they're coming. 0:01:46.240 --> 0:01:48.960 We know that because they've told us as much. We 0:01:49.080 --> 0:01:51.520 know that China has already rolled THEIRS out, and of 0:01:51.520 --> 0:01:54.440 course why wouldn't China. A central bank digital currency is 0:01:54.480 --> 0:01:59.400 the ultimate tool, the ultimate tool for control, and we 0:01:59.480 --> 0:02:01.520 know that because they've told us that. I played the 0:02:01.560 --> 0:02:04.320 clip I believe it was last week of augustin Carston. 0:02:04.440 --> 0:02:05.880 He's the head of the b I S. The b 0:02:06.040 --> 0:02:08.639 I S is the central bank above all central banks, 0:02:09.800 --> 0:02:13.040 and he said as much in that wording. He said 0:02:13.080 --> 0:02:18.160 that it is a tool for total control. So it's 0:02:18.200 --> 0:02:20.000 not just speculation. This is what it tells. As a 0:02:20.040 --> 0:02:21.720 matter of fact, I believe if I still have that 0:02:21.720 --> 0:02:25.760 clip available, let's reet it right here. Let's just play 0:02:25.800 --> 0:02:29.880 it right here. A key difference in with the CBDC 0:02:30.880 --> 0:02:35.520 is the Central Bank will have absolute control on the 0:02:35.639 --> 0:02:39.320 roots and regulations that will determine the use of that 0:02:40.160 --> 0:02:44.680 expression of central branch liability. And also we will have 0:02:44.840 --> 0:02:49.240 the technology to enforce that. Those are those two issues 0:02:49.280 --> 0:02:54.760 are extremely important and okay, so I take them at 0:02:54.800 --> 0:02:58.079 their word total control. So let's take a look at 0:02:58.080 --> 0:03:00.440 what they said in this meeting this week of things. 0:03:00.760 --> 0:03:03.520 So one, she gave an address, Christine the Guard, head 0:03:03.520 --> 0:03:05.480 of the ECB, gave an address to the European Union 0:03:05.520 --> 0:03:09.880 to talk about this, and she says, maintaining citizens trust 0:03:10.080 --> 0:03:13.560 in money and payment services in the digital age is 0:03:13.600 --> 0:03:18.400 an important objective in itself. It's interesting. Um, it's not 0:03:18.480 --> 0:03:23.400 just un important objective. It is the most important objective 0:03:23.400 --> 0:03:26.000 because there is no such thing as intrinsic value. All 0:03:26.160 --> 0:03:30.840 value is subjective and so people have to trust. People 0:03:30.880 --> 0:03:34.560 have to assign value to that. If they don't trust it, 0:03:34.880 --> 0:03:36.920 if they don't assign value to it, then they won't 0:03:37.000 --> 0:03:39.040 use it. We see this happen all the time. We 0:03:39.040 --> 0:03:42.200 talked about in a previous segment, the tulip mania in Holland, 0:03:42.360 --> 0:03:46.080 where people thought tulips were more valuable, more viable, more valuable. 0:03:46.120 --> 0:03:48.520 They had trust, but then also nobody wanted tulips in 0:03:48.520 --> 0:03:50.760 the crash. We taught with beanie babies, and so we 0:03:50.800 --> 0:03:53.880 assigned trust to things. But in Venezuela they print so 0:03:54.000 --> 0:03:56.880 much money nobody trusts anymore. It's laying all over the streets. 0:03:56.920 --> 0:03:59.320 Nobod even bothers to pick it up. So maintain the 0:03:59.360 --> 0:04:02.040 citizens trust money and payment services and the digital ages 0:04:02.200 --> 0:04:04.880 an important objective. No, it's the most important objective. If 0:04:04.920 --> 0:04:07.600 nobody trust the money, they're not going to use it, period. 0:04:07.960 --> 0:04:10.400 It says that it's in the basis of our economies 0:04:10.440 --> 0:04:13.160 to function effectively. Yeah, you have everyone has to have 0:04:13.160 --> 0:04:16.040 a money that they all trust. If I give you 0:04:16.080 --> 0:04:18.000 a money that you know that I can just go 0:04:18.040 --> 0:04:19.680 back into your account and take back from you, you 0:04:19.720 --> 0:04:23.919 won't trust that. You're not going to accept that, right, Okay, now, 0:04:24.040 --> 0:04:27.600 she says uh. She says a model for payments is 0:04:27.680 --> 0:04:31.919 undergoing a potentially disruptive transformation led by three developments. What 0:04:31.960 --> 0:04:35.600 are the three developments? First, people are increasingly paying digitally 0:04:35.600 --> 0:04:38.520 instead of using cash. Yes, I don't want to see 0:04:38.560 --> 0:04:42.120 cash disappear. Cash is very important because cash is private. 0:04:42.600 --> 0:04:44.440 If I hand you cash, no one needs to know 0:04:44.480 --> 0:04:47.599 about that transaction. It's between you and I, and no 0:04:47.640 --> 0:04:49.840 one needs to be in the middle of that. If 0:04:49.880 --> 0:04:53.120 I pay you for something via Venmo, Venmo goes to 0:04:53.160 --> 0:04:54.920 my credit card, and my credit card goes to my bank, 0:04:54.920 --> 0:04:56.400 and my bank talks to your bank, and your bank 0:04:56.400 --> 0:04:57.720 talk to your credit card, and your credit card goes 0:04:57.720 --> 0:04:59.760 to Venmo, there's like all those steps in the middle. 0:04:59.760 --> 0:05:01.600 Every he has a say in that. Everyone takes the 0:05:01.640 --> 0:05:04.920 piece of that transaction. Everybody could censor that transaction if 0:05:04.920 --> 0:05:07.120 they want. If I hand you cash, no one needs 0:05:07.160 --> 0:05:10.880 to know. No one needs to know, And so I 0:05:11.000 --> 0:05:13.080 like cash. I don't want to go away. But we're 0:05:13.080 --> 0:05:15.880 paying things usually, so I pretty much pay for everything 0:05:15.880 --> 0:05:17.880 with my debit card on my credit card, I get 0:05:17.880 --> 0:05:21.000 paid electronically. I send wire transfers. That's just the day 0:05:21.000 --> 0:05:23.200 and age. As a matter of fact, over all payments 0:05:23.240 --> 0:05:25.960 are done digitally now, and we have the Venmos and 0:05:26.000 --> 0:05:27.599 we got the paypals, and got the cash apps, and 0:05:27.600 --> 0:05:29.559 we got the wire transfers and the debit cards, et cetera. 0:05:30.080 --> 0:05:33.680 But it says that as this continues to trend um, 0:05:33.720 --> 0:05:37.479 as cashes lose use, less and less public money being 0:05:37.480 --> 0:05:42.120 government money, could ultimately lose its role as a monetary anchor, 0:05:42.920 --> 0:05:45.719 which is true, which is not a bad thing in 0:05:45.720 --> 0:05:48.600 my opinion. We should always have innovation, we should always 0:05:48.640 --> 0:05:52.279 have competition. Second, in the absence of a public anchor. 0:05:52.480 --> 0:05:55.559 So if as more people move to digital public money, 0:05:55.640 --> 0:05:57.760 government money could lose its role, and in the absence 0:05:57.800 --> 0:06:00.440 of that public anchor, the emergence of new kinds of 0:06:00.480 --> 0:06:06.720 digital assets could harbor instability and confusion amongst citizens about 0:06:06.800 --> 0:06:11.280 what is money and what is not. So um, if 0:06:11.680 --> 0:06:15.200 we have all these new types of digital money and assets, um, 0:06:15.240 --> 0:06:17.839 it could cause confusion among people. You know, the people 0:06:17.839 --> 0:06:20.599 are just too stupid. They don't know. We have to 0:06:20.640 --> 0:06:22.440 tell them what to do, because what would they do 0:06:22.520 --> 0:06:25.880 without us the government. Uh, they'll they'll never get along. 0:06:25.920 --> 0:06:28.800 I mean, they won't even know what money is. That's 0:06:28.800 --> 0:06:32.320 what she said. I'm quoting her. Uh, confusion amongst citizens 0:06:32.320 --> 0:06:35.400 about what is money. They won't even know what money 0:06:35.520 --> 0:06:38.240 is unless we tell them. That's what she's saying. I mean, 0:06:38.240 --> 0:06:41.640 it's insanity. First of all, what is money, Well, money 0:06:41.680 --> 0:06:45.760 is a money's communication. Money communicates value. Money is used 0:06:45.760 --> 0:06:49.000 to store my value. It's used to store my energy. 0:06:49.240 --> 0:06:52.159 So I exert my energy digging a hole if I 0:06:52.160 --> 0:06:55.840 don't need to use that Uh, that money then gets 0:06:55.839 --> 0:06:57.800 paid back to me. I dug that hole, that person 0:06:57.880 --> 0:07:01.000 pays me in money, and that money sits there and 0:07:01.080 --> 0:07:04.120 allows me to And that's my energy. I expended energy 0:07:04.120 --> 0:07:05.760 to dig the hole. I save it in the money, 0:07:05.760 --> 0:07:07.599 and now I could use that money at a later 0:07:07.680 --> 0:07:09.600 date tomorrow to not have to dig the hole because 0:07:09.600 --> 0:07:13.160 I have money. Um, that's what money is. But apparently 0:07:13.200 --> 0:07:14.960 we need the government to tell us what money is. 0:07:15.480 --> 0:07:17.760 It says that. Take for example, crypto assets. She says 0:07:18.680 --> 0:07:22.160 their unbacked variants such as bitcoin and ethereum are too 0:07:22.240 --> 0:07:24.440 volatile to act as a means of a payment. So 0:07:25.000 --> 0:07:26.880 one I would agree with her on that, Yes, they 0:07:26.880 --> 0:07:29.120 are too vulnerable volatile to act as a means of 0:07:29.160 --> 0:07:35.600 payment today. Today, money is emergent. Money evolves over time. 0:07:36.000 --> 0:07:38.400 There's a path. First, it starts as a collectible. If 0:07:38.480 --> 0:07:42.320 enough people collect it like the rich buy fine art 0:07:42.360 --> 0:07:44.280 and cars and things like that. If enough people collected 0:07:44.320 --> 0:07:47.400 it could doesn't always, it could evolve into a store 0:07:47.440 --> 0:07:50.240 of values. So the rich store their wealth in fine 0:07:50.320 --> 0:07:52.920 art and collectibles. It could go from a collectible to 0:07:52.960 --> 0:07:55.240 a store value. Then maybe, if it has the right 0:07:55.240 --> 0:07:57.800 attributes of money, it could evolve to the next stage, 0:07:57.840 --> 0:08:01.360 which be a medium of exchange. She's saying, it's not 0:08:01.440 --> 0:08:03.679 that today. Sure, it's only been around for a decade, 0:08:03.800 --> 0:08:05.760 give it some time. It's getting there. It has the 0:08:05.880 --> 0:08:10.520 right things um. And then third, she says the entry 0:08:10.560 --> 0:08:13.000 of big text into payments could increase the risk of 0:08:13.080 --> 0:08:17.800 market domination and dependence on foreign payment technologies, with consequences 0:08:17.840 --> 0:08:22.880 for Europe's strategic autonomy. How dare anybody cut into our 0:08:22.920 --> 0:08:28.280 monopoly over the financial system, our ability to manipulate and 0:08:28.600 --> 0:08:31.760 inflate the monetary system. How dare anybody try to get 0:08:31.760 --> 0:08:34.320 in on that. That's our game, that's our monopoly. Then 0:08:34.360 --> 0:08:36.640 we not only have a monopoly over money, we have 0:08:36.679 --> 0:08:40.199 a monopoly over violence, and we will use that violence 0:08:40.240 --> 0:08:42.800 to make sure we don't lose our autonomy over money. 0:08:42.800 --> 0:08:44.480 That's what she's saying here. She didn't talk about the 0:08:44.520 --> 0:08:47.200 violence part. But she said that if we let big 0:08:47.240 --> 0:08:52.480 tech get in, we the government could lose our strategic autonomy, which, 0:08:52.520 --> 0:08:56.160 of course yes, that's my goal. By the way, I 0:08:56.200 --> 0:08:59.520 am on a mission to separate money and state. We 0:08:59.559 --> 0:09:01.079 want to get out of the hands of the people. 0:09:01.720 --> 0:09:03.640 If you're just tuning in, you're listening to the Markma Show. 0:09:03.679 --> 0:09:07.240 We're talking about the decentralized revolution, how the world of politics, finance, 0:09:07.240 --> 0:09:10.400 and technology are clashing and changing, and we're looking at 0:09:10.440 --> 0:09:13.839 this specifically as the European Union got together to talk 0:09:13.880 --> 0:09:16.640 about what the future of money and technology is. I 0:09:16.720 --> 0:09:18.000 got a whole lot of cover when I come back. 0:09:18.040 --> 0:09:20.080 You don't want to miss this. This is breaking news. 0:09:20.400 --> 0:09:22.520 I'm gonna cover that and some other stories I have 0:09:22.600 --> 0:09:24.560 about what happened with the SEC in the United States 0:09:24.559 --> 0:09:27.320 and the future of cryptocurrencies in the US, which has 0:09:27.360 --> 0:09:29.040 just been set. Don't miss it. I'll be right back. 0:09:29.200 --> 0:09:32.640 Don't go away, all right, welcome back. If you're just 0:09:32.640 --> 0:09:34.920 tuning in, you're listening to the Markma Show. We're talking 0:09:34.960 --> 0:09:38.880 about what's happening in the world of central bank digital 0:09:39.000 --> 0:09:43.280 currencies and the European Central Bank just met and Christine 0:09:43.320 --> 0:09:46.560 the Guard the convicted criminal that runs that bank. UM. 0:09:46.640 --> 0:09:49.360 I was given an address and she was talking about 0:09:49.400 --> 0:09:52.720 this new digital payment. UM. Talking about designing the digital 0:09:52.760 --> 0:09:56.440 public money. She said, quote, issuing a digital Euro would 0:09:56.480 --> 0:10:02.200 indeed safeguard people's confidence. M hm. So people don't have 0:10:02.240 --> 0:10:05.880 confidence in a paper euro, but if it's digital, then 0:10:05.960 --> 0:10:09.840 people would have confidence in it. What changes fundamentally Now, 0:10:09.920 --> 0:10:12.480 if I have a physical piece of paper, a Euro 0:10:12.679 --> 0:10:15.640 or a dollar or whatever, in my hand, I know 0:10:15.760 --> 0:10:18.320 I have it. There's no counterparty risk. If I put 0:10:18.320 --> 0:10:21.040 it into the bank, there's risk that bank may not 0:10:21.160 --> 0:10:23.559 give that money back to me. They may go insolvent. 0:10:23.640 --> 0:10:26.320 There's counterparty risk. If I have it in my hand, 0:10:27.440 --> 0:10:29.400 then I have confidence I have it's under my mattress, right. 0:10:30.559 --> 0:10:33.160 But if they issue a digital euro, then it would 0:10:33.600 --> 0:10:36.440 safeguard my confidence. No, it would actually take away my 0:10:36.559 --> 0:10:41.280 confidence more. Um. She said, Okay, So here's the part 0:10:41.280 --> 0:10:45.840 I really want to get to. Privacy. So she said, uh, 0:10:46.200 --> 0:10:50.040 the code legislators, the lawmakers must define the balance between 0:10:50.080 --> 0:10:53.440 competing public objectives in the policy areas that the uh 0:10:53.760 --> 0:10:57.840 So the two aspects that they want to compete are. UH. 0:10:58.000 --> 0:11:02.480 One is privacy. So let's talk about privacy first, she says, 0:11:02.480 --> 0:11:06.760 the first one is privacy in our public consultation. So, uh, 0:11:06.800 --> 0:11:08.439 the European Central Bank, just like the Federal Reserve of 0:11:08.440 --> 0:11:10.000 the United States did as well. They opened it up 0:11:10.000 --> 0:11:12.400 for public comment. Let's see what the public have to say, which, 0:11:12.440 --> 0:11:15.920 of course they say that we're in a democracy. We're not. 0:11:15.960 --> 0:11:18.360 We're in a republic. But either way, it's uh, they 0:11:18.360 --> 0:11:20.800 should listen to us. The government works for the people 0:11:20.920 --> 0:11:22.920 of the people, by the people, for the people, so 0:11:22.960 --> 0:11:25.319 of course they should care what we have to say. 0:11:25.360 --> 0:11:27.280 So they opened up for comment. What do the people say, 0:11:27.280 --> 0:11:30.640 So that's what she's saying. In our public consultation, when 0:11:30.640 --> 0:11:34.680 we asked for stuff, forty three percent of respondents, almost 0:11:34.720 --> 0:11:40.640 half ranked privacy as the most important aspect of the 0:11:40.679 --> 0:11:45.400 Digital Euro, well ahead of any other feature. So it's 0:11:45.400 --> 0:11:48.719 clear that that we want the digital Euro to be 0:11:48.720 --> 0:11:52.000 attracted if we wanted to be attractive, and needs to 0:11:52.080 --> 0:11:56.200 be designed in a way that meets people's privacy expectations. 0:11:56.360 --> 0:11:59.440 That's what she says. Almost half of the people surveyed 0:11:59.480 --> 0:12:02.560 say it's the most important thing, way above anything else. 0:12:03.000 --> 0:12:05.000 So if we wanted to be attractive, it has to 0:12:05.040 --> 0:12:09.160 have that thing. But here's the butt. There's always a butt. 0:12:09.600 --> 0:12:15.440 But I'm quoting her. But full anonymity such as offered 0:12:15.480 --> 0:12:19.280 it by cash, does not appear a viable option in 0:12:19.440 --> 0:12:21.360 my opinion. What do we care about your opinion, your 0:12:21.400 --> 0:12:25.120 chivicted criminal? Anyway, such such it doesn't appear a viable 0:12:25.120 --> 0:12:29.880 option in my opinion, it would contravene other public policy objectives. 0:12:29.920 --> 0:12:32.080 So it would contradict it. It would go against other 0:12:32.440 --> 0:12:35.640 public policy objects, not what the public wants, never mind 0:12:35.760 --> 0:12:38.520 the public one privacy, but it would go against other 0:12:38.640 --> 0:12:42.000 public objectives, meaning what we want to do to the people, 0:12:42.000 --> 0:12:46.600 that's what you say, um, such as ensuring compliance with 0:12:46.760 --> 0:12:51.199 anti money laundering rules and combating the financing of terrorism, 0:12:51.240 --> 0:12:54.320 because you know your six dollars is going to fund terrorism. 0:12:54.400 --> 0:12:57.000 Never mind the four billion dollars that we sent to 0:12:57.200 --> 0:13:01.439 terrorists nations, never mind the weapons that we left in Afghanistan, 0:13:01.600 --> 0:13:03.800 never mind all the weapons that we're sending to Ukraine 0:13:03.840 --> 0:13:06.839 and going to who knows where. Never mind that you're 0:13:06.880 --> 0:13:09.600 six d bucks though we better know where that's going by, 0:13:09.679 --> 0:13:12.000 because I mean, shoot, you could be uh, you know, 0:13:12.200 --> 0:13:15.120 laundrying money and funding terrorism with that. How dare you 0:13:16.280 --> 0:13:18.480 only we're allowed to do that. We're the monopoly on 0:13:18.520 --> 0:13:22.839 that right. So, um, listen what she's saying. Although they 0:13:22.880 --> 0:13:25.040 told us it's the most important thing by going away, 0:13:25.080 --> 0:13:27.160 this is what the big thing want. It's just it's 0:13:27.200 --> 0:13:31.320 just not really it contradicts what we want. Um. So 0:13:31.400 --> 0:13:36.200 she says, uh, it would contrabute objectives such as insuring 0:13:36.200 --> 0:13:39.280 compliance with anti money laundry rules and combining the finance 0:13:39.280 --> 0:13:43.640 and terrorism. And it would also make it virtually impossible 0:13:44.280 --> 0:13:47.560 to limit the use of digital euro as a form 0:13:47.600 --> 0:13:49.760 of investment. So it would make it virtually impossible to 0:13:49.880 --> 0:13:52.240 limit the use. Listen to what she said, Remember what 0:13:52.280 --> 0:13:54.360 Augustine Carson from the b I said. It would give 0:13:54.480 --> 0:13:58.080 us total control. So she says that if we did this, 0:13:58.160 --> 0:13:59.800 if we gave the people what they wanted with it, 0:13:59.840 --> 0:14:03.240 did dual euro the CBDC, it would make it virtually 0:14:03.320 --> 0:14:06.480 impossible to limit the use. They don't want you to 0:14:06.600 --> 0:14:09.200 use your money as you see fit. I mean, yeah, 0:14:09.240 --> 0:14:12.000 it's your money, and yeah, you you you sacrificed and 0:14:12.040 --> 0:14:14.440 gave up your life energy to get that money, but 0:14:14.520 --> 0:14:16.959 it's not really yours. It's not yours to use as 0:14:16.960 --> 0:14:19.760 we want. We have to be able to limit the use. 0:14:19.880 --> 0:14:22.400 That's what she says. Think about these words that they're saying. 0:14:24.920 --> 0:14:27.000 It would make it virtually impossible to limit the use. Yes, 0:14:27.640 --> 0:14:30.560 that's the point. My money is my money. I should 0:14:30.560 --> 0:14:35.360 be able to use it as I see fit. What else? Okay? 0:14:35.400 --> 0:14:38.920 The next part, the legal tender status part. The second 0:14:38.960 --> 0:14:45.280 aspect is the legal tender status Um although an acceptance 0:14:45.280 --> 0:14:48.359 obligation has to be weighed against principles such as contractual 0:14:48.400 --> 0:14:53.480 freedom and competition, So meaning that you know, we should 0:14:53.480 --> 0:14:55.600 have the freedom to use it as we want. We 0:14:55.600 --> 0:14:58.040 shouldn't bear in mind that it is a constitutional feature 0:14:58.080 --> 0:15:02.840 of cash essential bank money to be lead will tender. Now, 0:15:04.720 --> 0:15:07.000 why does it have to be legal tender money? Now? 0:15:07.440 --> 0:15:09.200 I can't speak about every other country, but in the 0:15:09.240 --> 0:15:13.200 United States, it's still a free country. We are the 0:15:13.280 --> 0:15:17.040 land of the free. We don't need the government to 0:15:17.160 --> 0:15:19.480 tell us what we can accept as forms of payment. 0:15:20.080 --> 0:15:22.320 If I want to come over to your house and 0:15:23.280 --> 0:15:25.520 build a fense for you in exchange for a good 0:15:25.560 --> 0:15:27.160 or service that you want to give to me, that's 0:15:27.240 --> 0:15:29.280 my labor. I can give you my labor. If I 0:15:29.280 --> 0:15:31.240 want to trade you this iPhone that I have in 0:15:31.280 --> 0:15:33.800 my hand. Um, you can accept this iPhone as your 0:15:33.920 --> 0:15:36.120 as your payment. If I want to send you bitcoin, 0:15:36.480 --> 0:15:38.680 then you can accept bitcoin as your payment. We don't 0:15:38.680 --> 0:15:41.200 need the government to tell us what we can accept 0:15:41.320 --> 0:15:44.880 as payment or in exchange. I should say for goods 0:15:44.880 --> 0:15:46.920 and services. It can be my labor, it can be 0:15:46.960 --> 0:15:49.480 another product I have. We don't need it to be 0:15:49.680 --> 0:15:51.200 legal tender. And that's a big problem that I have 0:15:51.320 --> 0:15:53.840 with all these people that say we need regulations in 0:15:53.920 --> 0:15:57.080 bitcoin and crypto graz. No, we don't. We don't need it. 0:15:57.240 --> 0:15:58.960 We don't need the government to tell us what we 0:15:59.000 --> 0:16:00.880 can do. And again I'm speaking on behalf of the 0:16:00.920 --> 0:16:04.560 United States. The government does not give us permission to 0:16:04.680 --> 0:16:08.560 do anything. Because we're a free country. The government only 0:16:08.640 --> 0:16:12.800 takes away our rights. That's important point. At the week 0:16:12.880 --> 0:16:15.640 of these midterm elections, everyone's going to vote. The first 0:16:15.680 --> 0:16:17.480 thing my dad told me when I turned eighteen is 0:16:17.560 --> 0:16:20.480 remember every law you go to vote for, whether good 0:16:20.520 --> 0:16:24.440 or bad, is less freedom. So we're a free country. 0:16:24.520 --> 0:16:26.120 We're free to do things. The government tells us what 0:16:26.160 --> 0:16:28.640 we can't do, like you can't kill somebody, you can't 0:16:28.680 --> 0:16:32.160 rob somebody. Okay, those laws restrict our freedom and they 0:16:32.160 --> 0:16:35.440 should be all right, but we don't ask for permission. 0:16:35.440 --> 0:16:37.960 We don't ask for laws that tell us what to do, 0:16:38.280 --> 0:16:39.960 so we don't need them. But she said a side 0:16:40.000 --> 0:16:43.080 effect of illegal tender status maybe that it facilitates network effects, 0:16:43.080 --> 0:16:46.680 allowing citizens to have the option to quote unquote pay 0:16:46.760 --> 0:16:49.920 anywhere and easily access the digital euro. That would be 0:16:49.960 --> 0:16:53.920 a problem. We don't want that. We want to control it. 0:16:54.000 --> 0:16:55.880 We want to make sure it's only use in our country. 0:16:56.160 --> 0:16:58.560 They said that the digital euro may have transaction limits 0:16:58.560 --> 0:17:04.399 and store of value you caps um. Exact limits are 0:17:04.400 --> 0:17:07.200 not set in stone, but Panetta mentioned a three thousand 0:17:07.200 --> 0:17:10.960 euro um store of value limit, So you can't store 0:17:11.000 --> 0:17:14.400 more than three thousand euros. That's hoarding. You can't hoard 0:17:14.440 --> 0:17:16.800 the money. You've got to spend your money. How dare 0:17:16.840 --> 0:17:19.280 you save? Let us take that they want to put 0:17:19.280 --> 0:17:24.159 a three thousand euro limit and one thousand transaction monthly limit, 0:17:24.960 --> 0:17:29.679 a one thousand transaction monthly limit, because there will be 0:17:29.760 --> 0:17:32.800 risks that people could use these possibilities to move money 0:17:32.880 --> 0:17:35.919 and we can't control that. This is what's coming. This 0:17:35.920 --> 0:17:39.320 is what central bank digital currencies are. Understand what this is. 0:17:39.359 --> 0:17:41.359 So when you when you hear it being talked about 0:17:41.680 --> 0:17:44.600 you know what's happening. Talk about these ideas with your 0:17:44.640 --> 0:17:47.360 friends and family to educate them as well. I want 0:17:47.359 --> 0:17:49.679 to talk more about what's happening in the United States 0:17:49.800 --> 0:17:53.560 and what the SEC is doing with cryptocurrencies. In Bitcoin, 0:17:53.640 --> 0:17:57.000 a big judgment happened this week that really sets the 0:17:57.040 --> 0:18:00.160 precedence of what's coming next for maybe you're an next 0:18:00.240 --> 0:18:02.720 favorite crypto token. If you're just tuning in, you're listening 0:18:02.720 --> 0:18:05.160 to the markma Show. We're talking about the decentralized Revolution, 0:18:05.200 --> 0:18:07.480 talking about the way the world is changing through this, 0:18:07.680 --> 0:18:08.800 and I got a lot more to cover when I 0:18:08.840 --> 0:18:16.760 come back. Don't go away, I'll be right back, all right, 0:18:16.800 --> 0:18:19.040 Welcome back. You are listening to the Mark Moss Show, 0:18:19.440 --> 0:18:23.880 and we are talking about the decentralized Revolution. Of course, 0:18:23.960 --> 0:18:27.280 we're talking specifically about what the government's doing in regards 0:18:27.320 --> 0:18:31.359 to cryptocurrency, and this week we saw big news coming 0:18:31.400 --> 0:18:39.160 from the SEC Securities Exchange Commission talking about regulations on cryptocurrencies. Now, 0:18:40.280 --> 0:18:43.600 I'm not a fan of trying to apply a whatever 0:18:43.760 --> 0:18:47.240 hundred year old law of the how we test um 0:18:47.280 --> 0:18:50.000 of what is a security and try to apply that 0:18:50.080 --> 0:18:52.199 to cryptocurrency. I don't think it fits. It's kind of 0:18:52.200 --> 0:18:55.640 like a square peg in a round hole. But nevertheless, UM, 0:18:55.680 --> 0:18:57.760 that's where we are. And we saw this week the 0:18:57.960 --> 0:19:02.320 SEC came out and decided went to went to court 0:19:02.359 --> 0:19:07.400 against a platform called Library lb r Y and Library 0:19:07.560 --> 0:19:11.400 is um sort of like a decentralized YouTube. UM. It's 0:19:11.440 --> 0:19:14.800 also known as Odyssey, which by the way, my YouTube 0:19:14.840 --> 0:19:17.360 videos are on Odyssey, so you should check me out 0:19:17.359 --> 0:19:20.320 there either on YouTube just search market Muscle on YouTube 0:19:20.400 --> 0:19:24.119 or on Odyssey. And YouTube is obviously a very centrally 0:19:24.280 --> 0:19:29.400 controlled and centrally planned and manipulated platform. They kick anybody 0:19:29.400 --> 0:19:32.879 off that they want. But um, Odyssey is like a 0:19:32.960 --> 0:19:37.360 decentralized Virgin. The problem that they had is that they 0:19:37.480 --> 0:19:43.240 launched their own token, LBC a token, and the SEC 0:19:43.320 --> 0:19:46.919 sued Library saying last March saying that they sold as 0:19:47.000 --> 0:19:52.000 native LBC token in violation of federal securities laws. It 0:19:52.040 --> 0:19:54.360 says here the SEC sued Library in March of two 0:19:54.359 --> 0:19:57.800 thousand twenty one a leegend that LBC tokens were securities 0:19:58.200 --> 0:20:01.280 and that the startup had violated to scurities laws by 0:20:01.320 --> 0:20:06.680 selling them without registering with the agency with the SEC. Now, 0:20:06.880 --> 0:20:10.680 Library pushed back said that the OBC tokens were not securities, 0:20:10.920 --> 0:20:12.919 and that the SEC did not give it fair notice 0:20:12.960 --> 0:20:15.800 that it's cell of LBC was subject to securities laws, 0:20:16.520 --> 0:20:23.680 thus violating the company's right to due process. But ah, 0:20:23.880 --> 0:20:26.440 I mean again, we have securities laws. A lot of 0:20:26.440 --> 0:20:29.560 people wanted to operate in this gray area, and thousands 0:20:29.600 --> 0:20:32.119 and thousands of thousands, tens of thousands of companies have 0:20:32.200 --> 0:20:34.560 gotten away with it because the SEC hasn't really formally 0:20:34.600 --> 0:20:37.000 come out and put the put the put the boot down, 0:20:37.040 --> 0:20:40.240 so to speak. Um, and they haven't really aggressively pursued 0:20:40.680 --> 0:20:45.560 and prosecuted these types of companies. It says here, though, 0:20:45.640 --> 0:20:50.160 that the federal Judge of the District Court of District 0:20:50.200 --> 0:20:54.800 of New Hampshire ruled saying that quote, no reasonable trier 0:20:54.880 --> 0:20:57.760 of fact could reject the SEC's contention that it offered 0:20:57.760 --> 0:21:01.280 a security and Library does not have a tribal defense 0:21:01.880 --> 0:21:05.360 that lacked fair notice. They basically said, no, it doesn't matter. Um. 0:21:05.400 --> 0:21:07.920 The founder of Library, Jeremy Kaufman, has maintained that the 0:21:07.920 --> 0:21:12.000 outcome of the case would have sweeping implications for the 0:21:12.040 --> 0:21:14.920 wider crypto industry, and the reason why it has sweeping 0:21:14.960 --> 0:21:18.480 into implications is because the way the legal system works 0:21:18.600 --> 0:21:21.640 is they use case law case laws, that's precedents. So 0:21:21.840 --> 0:21:25.400 whenever an attorney is arguing a case, they're gonna say, well, 0:21:25.720 --> 0:21:28.560 in this case versus this case, this is what happened. 0:21:29.080 --> 0:21:32.360 And the more that that case is being used or cited, 0:21:32.359 --> 0:21:37.120 the stronger it becomes. And so this case law could 0:21:37.160 --> 0:21:40.359 then be have sweeping implications because then other cases after 0:21:40.400 --> 0:21:44.600 it could be tried. Pointing back to this, it says 0:21:44.640 --> 0:21:48.399