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12 tweets,
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1/The recent BIS talk is a fascinating foray into Central Bank strategy. It also reveals how to establish a working mechanism for negative interest rates through a "currency swap." This is why #bitcoin matters. Read on 👇
2/It begins with the concept of CBs adopting traditional bank practices and expressly contrasting the "safety" and "trustworthiness" of CBs vs retail banks. Retail banks are characterized as political tools lending to "favoured sectors of the economy."
3/A CB enters retail banking in part by issuing a token. The proposed CBDC (Central Bank Digital Currency) token has a retail payments arm and wholesale version that is exclusive to final settlement and interbank payments.
4/Moreover, CBDC tokens take on characteristics of an interest bearing instrument. 
5/Considered a trusted entity, the CB is less susceptible to structural shift in the banking sector, its token gains value over fiat - CBDC becomes a flight to safety during times of financial stress.
6/However, as the value of the token is deemed more than converted fiat, the depositor's cash immediately loses value and becomes a participant in a bail-in scheme.
7/This concept dovetails quite nicely with the recent IMF proposed 2 currency "cash" and "e-dollars" system with cash losing 3% per year against its e-dollar equivalent.
8/Not just a thought experiment - this is a salvo in the normalization of neg. interest rate discourse, introduces retail CBs as lenders & depositors of only resort, and curtails individual rights as CB money begets deeper political and social control mechanisms.
9/CBs are notoriously conservative and averse to structural change. Bitcoin is a threat to the existing banking paradigm and has forced the CB's hand.
10/Bitcoin is financial free speech and an individual's right to choose how and when to spend and save. It is the antithesis of CB tokens/fiat which force one to work, spend immediately, shirk savings and become perpetually indentured to the state.
11/As Bitcoin grows BIS and like entities will increasingly attempt to push public sentiment towards higher time preference, create false wealth through keystrokes and prop up the current fiat regime through CBDC schemes.
12/Bitcoin is the opportunity to resist & reverse this insidious progression to a planet wide working class subservient to CBs. With Bitcoin we express our desire to remain a free people, undo fiat's failure, and allow a better economic system to take root.
