The summits are matter of fantasy, all the more so when the theme of dematerialized currencies invites itself there. About 1,500 business leaders, government leaders, academics, civil society leaders gathered in Tianjin, China, June 27-29 for the 14th annual meeting of new champions. Organized by the World Economic Forum (or in English World Economic Forum, WEF) and known colloquially as “Summer Davos”, this meeting focused on the theme of entrepreneurship.
In a very viral tweet shared more than 2,800 times, a relay account of conspiratorial content denounced the directive of the World Economic Forum, which would have “urged Western countries to ban cash “as a matter of urgency” and to introduce a system of social credit Chinese style” during this meeting. This request would be implemented “in the context of growing and widespread public skepticism towards the globalist agenda”.
In support of this assertion, a link leads to an article from a German blog. In this one, a lecture given by an economist on the currencies of the future and a WEF report on the interoperability of central bank digital currencies are diverted to draw conclusions that do not appear there.
FAKE OFF
In the report of the World Economic Forum, there is never any reference to any “urgency” to set up in Western countries a digital currency of central banks, nor in the conference of the academic. Highlighting that in 2023, interest in central bank digital currencies (CNBCs) has gained “significant momentum” with more than 100 countries involved, this white paper aims to “coordinate” and “promote the interoperability of national and cross-border payment systems”. In particular, it shows what are the priorities of countries or regions in the development of these digital currencies.
A new form of currency
These new currencies are in their infancy, their development is not unanimous and must still convince of their usefulness. The Banque de France has, in a PDF document, detailed operation. This new form of currency is issued by a central bank, in a dematerialized format. It would come as a payment option, in addition to cash.
Several central banks are studying the possibility of issuing them, including the European Central Bank. The European Commission wants to develop a digital euro, a dematerialized version of the single currency. On June 28, she presented a legislative framework for this project, which arouses the hostility of the banks. This digital euro can be stored on a card or a mobile phone, will allow online payments, but also payments without any Internet connection which will preserve as much anonymity as coins and banknotes.
conspiratorial fantasies
These new currencies also arouse conspiratorial fantasies. Thus, several false elements are put forward in the article of the German blog, named “the truth triumphs”. It is argued, without any evidence or evidence to that effect, that “in reality” digital currency “will cede all financial control over people’s lives to central banks and governments”.
In support, a sentence (p.15) was taken from the white paper, it gives ways to “advance cashless societies”: “Focus on reducing the use of cash, promote digital payments and improve financial literacy to drive economic growth, while addressing privacy concerns. This sentence actually relates to one of the priorities of the Asia-Pacific region to develop central bank digital currencies. And does not correspond to the priorities set out in Europe or North America. And it is in no way written that it is a question of prohibiting the use of cash.
And a real alert on potential risks
But it is above all the speech of Eswar Prasad, star economist and teacher at Cornell University in the United States, specialist in digital currencies, which alarmed and whose meaning was diverted. In a conference at the World Economic Forum on June 28, still viewable on YouTubehe explains in half an hour the stakes of the money of the future.
An extract, broadcast on Twitter, was particularly relayed (from 32 min): Eswar Prasad underlines that the digital currencies of central banks, which he supports, can prove to be “wonderful” tools. But they may have “the potential to take us to a better world or a rather bleak future”.
A new currency that could be programmed
He develops his argument thus: “enormous advantages” can be associated with central bank digital currencies such as “programmability”. Central bank units of currency could allow governments to “decide that these units are used to buy certain things, but not others that they deem less desirable, such as ammunition, drugs, pornography”, etc. .
But, he warns, “if you have units of central bank currencies with different characteristics, or if you use central bank money as a channel to carry out economic policies in a very targeted way, or more broadly to social policies, it could really affect the integrity of central bank money and the integrity and independence of central banks”.
His speech is therefore a warning of potential risks, but not at all an exhortation from the World Economic Forum to eliminate cash in order to establish Chinese-style social credit.