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March 5, 2025 - The David Knight Show
07:45
Is Trump Doing a Private Version of “Fed Now” — the Fed's CBDC Phase One?
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The hijacking of Bitcoin.
Roger Bear and others have talked about it and had Aaron Day come on.
He said, yeah, it was originally set up to do transactions and to try to do transactions without using Federal Reserve notes, fiat currency.
But then it got hijacked and it became an asset that people would buy and trade and gamble on.
That's the hijacking of it.
Taking something that was set up to do, transactions, like I'm going to buy a pizza with Bitcoin, and now you look at it after they turned it into an asset to be hoarded.
Now the people who bought that first transaction of pizza, they have a day where they celebrate that, and I don't know what it's up to now, but it's like hundreds of millions of dollars for buying a pizza in today's value.
XRP came along.
It was designed for fast transactions.
They are targeting institutions, though.
Not really individuals with XRP. There is no proof of work on any of these three.
On XRP, ADA, or SOL, which is Solana.
And again, proof of work is what all the mining of Bitcoin is about.
It's to keep it honest, right?
You've got to do some calculations to process these things.
Well, they're not doing any of that.
Instead, what they're doing is they're going to proof of stake.
The initials for that are POS, which also are initials for what this whole thing is.
It all is a piece of S. But the proof of stake, stakeholders, right?
What this means, I've got the authority to do this.
I'm a trusted individual or whatever.
You need to trust me as an institution.
All three of these are about POS. And CBDC was about POS. That was a major distinction between CBDC and Bitcoin, was that Bitcoin was about proof of work, and the CBDCs are just going to be, well, this belongs to the central bank, so you can trust it.
That type of thing.
And that raised a lot of red flags with a lot of people.
But, you know, these things were set up, again, XRP was set up to target institutions to do fast transactions.
No proof of work.
And it relies on trusted validators.
It's not designed as a store of value.
It's not really for retail.
It's really for financial institutions and processing transactions.
It is highly centralized.
It is owned by just a few people.
As a matter of fact, they are not creating these coins with a mining process.
They had 100 billion tokens, and they were all there at creation, at the moment of creation, kind of like the angels.
There's nothing angelic about this stuff.
But they had 100 billion of these tokens, and they kept 80% of them themselves.
And so they're using this as a transactional thing.
So this would be settling international transactions, kind of like SWIFT or something like that.
And that is a function that they need to have for CBDC. And it's also about tokenization.
Which is a function that they need to have in order to steal everything from us.
Steal all of our land.
Steal everything.
You go back to Lutnik.
And I assume that he is probably going to be taking his grandkid to kindergarten the day that the economy crashes like 9-11 towers.
He will be taking a powder on all this stuff.
But he will have tokenized everything.
That's what all these people around Trump are about.
They're all about derivatives, tokenization, and everything else.
Anyway, the other one, ADA. Created in 2017, launched by the co-founder of Ethereum.
It is also a POS. Proof of stake.
It supports NFTs.
The kind of stuff that Lutnik has been involved with.
It supports smart contracts, too.
And you can take these smart contracts.
They're very close to what they want to do in terms of proscribing what you can buy and controlling what you can buy with these smart contracts.
So it checks a lot of boxes for the functionality of a CVDC without it being a government function, a public...
Private partnership with these stakeholders who just have to have a proof of stake and the approval of the president because Congress does nothing anymore.
Nothing anymore.
Then finally, SOL, Solana.
It was set up for speed and for scalability.
It has low transaction fees.
It came about just in 2020. It was heavily involved with meme coins.
And so you got, you know, these different currencies are all...
They're for transactions.
They've been involved in NFTs.
They've been involved in meme coins and in smart contracts and all the rest of this stuff.
You start to see where this is leading.
No reserve with these digital gold, right?
Instead, you're going to have digital money using private currencies as proxies, as proxies.
Institutional transactions as well as for individual transactions.
And they were going to roll it out for institutional transactions first.
That's where they first did it with FedNow.
And then they go to FedCoin.
I think that this initial stage here is like creating their public-private partnership digital coin, kind of like a FedNow.
Because FedNow was about transferring money between the institutions.
It wasn't about a retail coin.
I think that's where we are with this thing that's going to happen on Friday.
So Ripple had said, private sector innovation meets public vision.
That's kind of their motto.
Functionally, a lot of the same stuff as the CBDC, except without the central bank.
It is a giant step towards CBDC, without calling it that.
And again, starting first with the wholesale stuff, before they get...
To the retail stuff.
So all this news triggered a lot of buying.
Bitcoin went from about $85,000 to $95,000.
The Cardano stuff jumped by 72%.
But again, it's created a lot of extra volatility in a marketplace that was already pretty volatile.
Trump is about chaos.
He's about pump and dump.
and look these guys whether you're talking about wall street or especially talking about these crypto things they thrive on the volatility that's how they make their money they don't make any money if everything goes sideways and stays horizontal if it's going up and down big time they can they can trigger that stuff that's right boys and girls There's a post-election sale on silver and gold.
Trump euphoria has caused a dip in silver and gold.
It's time to buy some medals with fiat dollars before they come to their sense.
Go to davidknight.gold to get in touch with the wise wolf himself, Tony Arterburn.
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