Authored by Aaron Day via The Brownstone Institute,

The United States has had a Central Bank Digital Currency (CBDC) since the late 1990s, or perhaps even earlier, depending on your definition. Definitions are crucial. Much like the bestselling novel “50 Shades of Gray,” which delves into the complex dynamics of control and submission in relationships, our financial system has morphed into what could be called “50 Shades of Central Bank Tyranny.”

Each layer of our digital currency system strips away the illusion of freedom, revealing progressively darker shades of control. As we delve deeper, what initially appears as autonomy is revealed to be an intricate web of dominance, tightening its grip on our financial liberty with every layer peeled back.

Politicians often manipulate language to create false impressions, masking their true intentions or claiming victories with no substantive achievements. For instance, the Patriot Act was far from “patriotic,” and the CARES Act prioritized large corporations and Big Pharma over small businesses and American health. These acts expanded the surveillance state and bolstered the censorship industrial complex at the expense of liberty and free speech.

Just as “50 Shades of Gray” unveils power plays in a seemingly consensual relationship, our financial system exposes its true nature as a digital dominatrix. Over decades, it has steadily added links to the chain of financial enslavement, tightening its hold on our autonomy.

In this article, I will define what a Central Bank Digital Currency is by exploring its major categories. I’ll demonstrate that the US already operates with a form of CBDC, albeit without flashy labels. I’ll also show that the Federal Reserve can introduce more dystopian elements into this system—such as programming restrictions on when, how, and where you can spend your money—without requiring Congressional approval.

However, central bank control over your transactions is a distraction. The real threat lies with our government, which has perfected the art of surveillance. Adding programmability is just the next logical step. Ultimately, both Republicans and Democrats are steering us toward total digital control. They may use different words and propaganda, but their goals converge. While we can’t vote our way out of this predicament, we can opt out entirely.

I’ve been laser-focused on warning people about the threats of CBDCs for the past two years. This dedication led me to write a book, “The Final Countdown,” and even run for President to raise awareness about the issue. I handed a copy of my book to Vivek Ramaswamy, and after reading it, our conversations helped bring the CBDC issue to Donald Trump’s attention. Since exiting the race last October and becoming a Brownstone Fellow, I’ve traveled to 22 states to discuss the dangers of CBDCs.

Currently, I’m hosting over 15 four-hour workshops nationwide—and soon internationally—educating people on using alternative currencies to avoid CBDCs and evade “The Great Taking,” a carefully engineered process that could strip us of our stocks, bonds, and 401(k)s to benefit the largest banks through legal maneuvers across all 50 states.

I entered the crypto space in 2012, but it wasn’t until I saw friends and people I admired being arrested, imprisoned, or having their businesses destroyed by the federal government that I became truly passionate about this issue. Since I exited my personal bank account in 2019, this has impacted me personally. I started researching the topic and discovered that the crackdown on crypto was directly related to CBDCs. Put simply, the government needed to crack down on crypto to usher in a CBDC.

For two years, I have been traveling around the country (and soon the world) to warn people about the perils of CBDCs that could come right around the corner. But as I’ve dug deeper into the technical and legal aspects of this issue, I’ve concluded that we already have a CBDC. We have for decades. Our transactions are already surveilled. Banks and the government can censor our accounts. The money in our bank accounts is already digital (at least 92%). There is no need to worry about the future threat of CBDCs; we already have them. At this point, we are just fighting over our degrees of slavery.

It becomes clear that we already have CBDCs when you start examining how money is created.

As explored in my previous article, “You Might Own Nothing Sooner Than You Think,” modern commerce now flows through vast, centralized databases. These databases form the backbone of our financial system, housing everything from our bank account balances to our stock holdings. Money is no different.

Let’s start with the basics of money creation: government borrowing. The government sells IOUs in the form of Treasury securities (bills, notes, and bonds) to the Federal Reserve. Where does the Federal Reserve get the money to buy these securities? They create it out of thin air. Or, to be more accurate, they simply add some ones and zeros in a database—an Oracle database, no less (thanks, Larry Ellison!).

The Federal government then pays its bills through its account at the Federal Reserve. When checks are written for projects like a $3.4 million turtle tunnel in Florida or a $600,000 study on why chimpanzees throw feces, the funds are transferred from the Fed’s Oracle database to the accounts of vendors and employees at commercial banks, each maintaining their own separate databases. Some use Oracle; others use Microsoft.

Here’s where it gets even more absurd: for every dollar deposited by its customers, a commercial bank can create nine new dollars in its database to loan out to other customers. We have a fractional reserve system. Since 1992, banks were required to send 10% of deposits back to the Federal Reserve as reserves. COVID-19 legislation removed this requirement; now banks aren’t required to have 10% at the Federal Reserve (though for various reasons they still keep about that level at The Fed).

The government issues an IOU to the Federal Reserve, which creates digital money in a database. The government pays its bills; checks are deposited in commercial banks that create additional money; a portion is sent back to the Fed—all in digital entries in databases. If you add up Central Bank and Commercial Bank databases globally, you get more than 60,000 separate databases sending entries back and forth.

When someone asks me, “What is a CBDC?” I start by examining the grammar of the question. A CBDC is a Central Bank Digital Currency. The Federal Reserve is our central bank; our currency is already digital—the 1s and 0s created out of thin air in an Oracle database. By this definition, we’ve had a CBDC for decades.

As of 2024, only 8% of US currency exists physically; 92% is digital. So, are we a 92% CBDC? We become a CBDC when more than 50% of our currency exists digitally.

Politicians and central bankers claim we don’t currently have a CBDC and wouldn’t agree with my definition. I’ve tried to understand their definitions and isolate discrepancies.

Generally speaking, when central banks, the World Economic Forum (WEF), United Nations (UN), World Bank, International Monetary Fund (IMF), and Bank for International Settlements (BIS) talk about CBDCs, they define them as digital liabilities of the central bank (as opposed to being liabilities of commercial banks). Remember earlier: they create their own money in separate databases and provide only a small amount (10%) back to the central bank as reserves.

This distinction seems trivial because commercial banks own the Federal Reserve—or at least that’s commonly believed. As a private entity, true ownership remains shrouded in secrecy but appears controlled by a cartel of private banks. For more insight into this, I recommend G. Edward Griffin’s “The Creature from Jekyll Island.”

Here’s how it works: Money is initially created in the Federal Reserve’s database and then deposited into separate databases of banks that own the Federal Reserve. These banks create even more money based on those deposits.

Having dispensed with the idea that currency issued by a central bank and currency issued by a central bank used as backing for more currency issuance by commercial banks are effectively given that banks own the Federal Reserve let’s address misconceptions about CBDCs.

Myth: If I have a CBDC, I’ll have an account directly with the Federal Reserve; my bank will disappear.

Many fear that CBDCs mean having accounts directly with the Federal Reserve, eliminating commercial banks. This fear leads some to believe CBDCs won’t happen because commercial banks will resist for survival. Yet none of the launched CBDCs (including China’s) have this structure. In China, People’s Bank of China (PBOC) creates CBDC and issues it to commercial banks.

Consumers don’t deal directly with central banks. There are 134 countries pursuing CBDCs; none (including US) contemplate cutting out commercial banks. Therefore, consumers having accounts directly with central banks isn’t critical for being a CBDC.

When globalist organizations like UN/WEF/World Bank/IMF discuss CBDCs, they often mention programmability, surveillance/control, financial inclusion as essential elements. Let’s test if current dollars have or could have these “features.”

Programmability: Dystopian fears about CBDCs revolve around their ability to be programmed—rules dictating how/when/where/if you can spend digital money using smart contracts/tokens (unique digital asset representations).

You don’t need new blockchain tech for programming. Federal Reserve’s Oracle database & Microsoft/Oracle systems used by commercial banks are programmable now using APIs for years—rules flagging transactions based on criteria—exactly what programmability is about. So while single centralized digital currency might ease Big Brother enforcing spending rules—the tech exists in current systems.

Existing financial systems rely heavily on algorithms/automated decision-making influencing everything from payment processing/credit scoring—examples include credit cards shutting off access based on carbon emissions/health savings accounts allowing pre-approved medical expenses only/transaction routing algorithms prioritizing certain merchants/anti-money laundering systems flagging suspicious activity/payment processors adjusting interest rates/fees based on individual credit scores dynamically.

Complex algorithms/automated decision-making work as you head home goods store buying new gas stove (while legal)—swipe credit card—the payment processor’s algorithm checks credit score determining purchase eligibility/bank system reviews account balance ensuring sufficient funds—AML system runs flagging suspicious activities indicating illicit activities—algorithm checks MCC verifying purchase within approved limits/calculates interest rate/fees associated based on individual credit score—the payment processor routes payment store’s bank transferring funds—all in seconds—allowing stove purchase/cooking storm.

Doconomy Mastercard—a co-branded card with UN takes programmability further tying transactions carbon emissions—algorithm tracks carbon footprint every purchase—exceeding carbon spending limit card declined/shut off—achieved through complex system assigning carbon score merchant/transaction considering factors like goods/services type/location/mode transportation used—algorithm calculates user’s total carbon footprint comparing predetermined limit adjustable based on individual carbon budget—exceeding limit restricts/shuts card limiting access money.

Health Savings Accounts (HSAs)—tax-advantaged savings accounts allow setting aside funds medical expenses—strict rules limit products/services purchased—funds used pre-approved health expenses only like doctor visits/prescriptions/equipment—the account linked debit card/checkbook—but funds used only pre-approved merchants identified MCCs—swiping HSA card MCC checked approved codes ensuring transaction eligibility—unapproved MCC declines transaction limiting non-medical expenses access—programmability ensures HSA funds used intended purpose providing convenient tax-efficient saving medical expenses.

When politicians claim fighting against horrible CBDCs protecting Americans from programmed money inform them how existing systems work—no major technical upgrade needed/no significant laws passed adding programmability/rules/algorithms developed daily without public hearing/Congressional approval/shoutout favorite financial news channel.

Surveillance: Americans increasingly worry every transaction under government’s watchful eye—Ted Cruz said “Biden Administration actively working creating new digital currency allowing government spy transactions control financial freedom—we must stop now.” Ron DeSantis declared “Biden administration’s push Central Bank Digital Currency about surveillance/control—Florida won’t stand—we protect Floridians’ financial privacy/security.”

Senator Cynthia Lummis/Wyoming Republican favorite Bitcoin enthusiasts also sounded alarm: “Deeply concerned Biden Administration’s push CBDC—gather information Americans control spending—we ensure any digital currency system protects privacy/individual liberty.”

Not just Republicans waving privacy flag—Elizabeth Warren advocating CBDCs said “Creating digital dollar ensuring works everyone/not just wealthy/protecting consumer privacy.”

How noble/patriotic/completely divorced reality voting records—current digital dollar highly tracked/censored decades.

US government various methods accessing financial transaction info depending type/circumstances:

Let’s put this personal terms—I could write entire book case studies showing government used surveillance techniques targeting people—I have friends prison non-violent crimes made possible surveillance measures banking system today.

Picked two gems highlighting extreme surveillance measures current banking system:

Rebecca Brown’s Case: Civil Asset Forfeiture Gone Wrong

In 2015 Rebecca Brown’s father Terry driving Michigan visiting New Jersey carrying $91k cash daughter spent years saving buying house—not trusting banks withdrew money carried safekeeping—pulled minor traffic violation Pennsylvania trooper discovering cash suspicious despite clear explanation money daughter’s buying house—with no charges/evidence crime police seized entire $91k civil asset forfeiture laws—Rebecca/father spent year/thousands dollars fighting getting money back garnering national attention highlighting abusive nature civil asset forfeiture laws allowing law enforcement taking innocent people’s money without proof wrongdoing eventually returning money long costly legal battle leaving family financially strained/emotionally exhausted.

Nick Merrill’s Story: Gagged National Security Letter

Nick Merrill owning small NY ISP life changed FBI serving National Security Letter demanding customer records gag order—not allowed telling anyone including lawyer request—horrified FBI provided no evidence/court order just NSL couldn’t challenge letter court gag order illegal speaking fought gag order secretly years unable telling closest friends happening until 2010 winning right speaking publicly becoming first person challenging NSL gag order successfully deeply shaken—we don’t know how many similar experiences occurred.

Recap: NSA bulk collects financial data IRS uses AI monitoring spending banks rules tracking suspicious behavior between Patriot Act NSLs spying without court approval may not talk lawyer money digital heavy surveillance worse? Initially thought Cruz/DeSantis/Warren unaware deep surveillance rabbit hole goes deeper despite public outcry privacy Ted Cruz voting US FREEDOM Act reauthorizing parts Patriot Act including NSLs Warren backing pushing strengthening Bank Secrecy Act DeSantis supporting US FREEDOM Act tightening Bank Secrecy Act grip.

Financial Inclusion: Absurd claim Orwellian doublespeak globalist organizations WEF/UN/BIS claiming CBDCs promoting financial inclusion really banning physical cash no formal definition stating can’t having CBDC alongside physical cash definitions contested shifting narrowly defined deflecting authoritarian existing system cash/CBDC like America pilot programs contemplating physical cash alongside gradually phasing out cash definitions matter BIS/WEF “inclusion” stripping away cash calling progress kicker: 4.5% Americans unbanked depend physical cash surviving under CBDC requiring permission transactions denied excluding people economy worse current situation explicit exclusion.

Tokenization: IMF/BIS peddling semantic argument CBDC truly “digital” tokenized assigning unique trackable token unit currency distinction terminology substance majority money existing digital form stored databases like Federal Reserve Oracle database/commercial banks Oracle/Microsoft databases debate not whether money digital but who controls digital ledger US divide party lines Democrats advocating central bank-issued tokenized currency Republicans led Cynthia Lummis pushing commercial bank-issued stablecoins distinction moot both options equally programmable/surveillable/controllable government commercial banks owning central banks distinction largely moot tokenization not magically making something “digital” different type digital representation ultimately central bank-issued token/commercial bank-issued stablecoin result programmable trackable potentially oppressive digital currency threatening individual freedom/autonomy.

We have central bank digital currency politicians/globalist organizations UN/WEF/BIS shifting goalposts adding narrow definitions tyrannical redefinition—

CBDCs present reality not waiting implementation already here measuring degrees tyranny accompanying them CBDC Tyranny Index understanding control/surveillance levels—tool indicating level control/surveillance digital currencies higher score more oppressive CBDC already Bondage Level significant loss freedom/autonomy not stopping Servitude Level cut-off 120 points multiple ways reaching threshold increased AI-powered monitoring combined cashless society/tokenization path Servitude end game global digital currency social credit system tracking controlling transactions dystopian future discussed book “The Final Countdown.”

I wrote article clarifying we already have CBDC present threat existing system digital programmable trackable politicians/central bankers/globalist organizations shifting definition deflecting existing grooming deeper tyranny shades—

We must take ownership definition making intentions clear moving towards absolute digital enslavement global technocracy hammer meme bondage servitude enslavement CBDC tiers explaining different elements tyranny index bringing awareness Republicans/Democrats complicit tyranny semantic manipulation definition passing legislation elevating tyranny bondage servitude Dems servitude level Central Bank-issued tokenized dollar under guise financial inclusion current policy President Biden’s Executive Order 14067 Republicans enhanced surveillance giving monopoly control tokenized commercial bank digital currency largest banks under guise stopping illegal immigration terrorism/money laundering highlighting politician behavior both sides not suggesting writing/calling Congressman can’t vote way out legislation adding programmability/surveillance bipartisan every fiat currency human history failed last 5 global reserve currencies lasting 84 years difference controlled demolition intentionally bringing wholly digital control system—

Way forward radical non-compliance adopting monetary alternatives outside state’s control stopped using personal bank account started using self-custody crypto gold/silver recent Bitcoin hijacking revelations moved privacy coins Zano/Monero using physical gold/goldbacks/silver hosting workshops showing obtaining using alternative currencies substitute dollar traveling cities US/internationally workshops show people avoiding CBDCs monetary alternatives avoiding Great Taking stripping stocks bonds benefiting largest banks legal maneuvers across states—

We must wake up act against impending dystopia fighting over degrees slavery time radical action adopting alternative monetary solutions fighting back against tightening chains financial enslavement technological tyranny unfolding before eyes