Capital Controls, Bitcoin and Physical Gold

Capital Controls, Bitcoin and Physical Gold

In a recent article we reviewed reasons to begin researching how to get ones’ gold out the U.S. as this may be a necessary thought process in the not too distant future. One of the ways that was explored was to convert your physical gold into Bitcoin. We explained this may be a risky proposition as the threat of an internet shutdown, via a kill switch, or something changing with the cryptocurrency market space.

Today we learn how real the threat to the cryptocurrency market has become.

The first time the ECB officially warned about the dangers of virtual currencies in general, and in particular, bitcoin – what was then a mostly unknown currency trading in the single digits (in USD terms) – was in November 2012 when in a report called “Virtual Currency Schemes” it warned that “in an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes).” Source

Recently we reported their is now a cryptocurrency that has been developed specifically for central bank use. Why would central banks need or want a cryptocurrency? You can’t have a cashless society without having a way for people to be sold, I mean issued, the currency they will be forced to use. The Utility Settlement Coin (USC), like other currencies, will probably prohibit the use of competing currencies. This would include, in my opinion, the entire cryptocurrency market – made illegal.

The next question would be – how would this effect the “wallets” that are currently in use? Would they go to zero, would they be forced to convert their digital coins to something other form of currency? How would the conversion work, would it be at parity? Personally, I don’t think any central bank would offer you one USC for one Bitcoin, LiteCoin or any other digital currency. Why would they?

Converting physical gold into a cryptocurrency certainly has risk and it appears the central banksters are already ramping up their rhetoric. If we know we can convert physical gold into a cryptocurrency, travel to a new location and then convert back to physical gold, the central banksters know this as well. You can not keep a population enslaved if their currency is not corrupted. It is through freedom of movement that we know freedom. If our movements are restricted we are nothing more than serfs working for the oligarchs enrichment.

However, overnight in a surprising reminder how the European central bank feels about bitcoin and other virtual money, the ECB urged EU lawmakers to tighten proposed new rules on digital currencies such as bitcoin, fearing they might one day weaken its own control over money supply in the euro zone.

In other words, first the ECB went after cash; now it is going after all virtual currencies like bitcoin. Source

It may be time to rethink cryptocurrencies as an alternative form of currency and most certainly as a way of moving physical gold out of one country into another.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.