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International Monetary Fund paper suggests CBDCs could turn society cashless

Published

4 weeks ago

10 minute read

From LifeSiteNews

By Tim Hinchliffe

A working paper by the International Monetary Fund suggests that cash may disappear from society entirely once central bank digital currencies become mainstream.

With widespread digital currency adoption, cash may go the way of the dodo bird, and it would be “challenging and costly” to revive it if a society were to go fully cashless, according to the IMF working paper, Could Digital Currencies Lead to the Disappearance of Cash from the Market? by Marco Pani and Rodolfo Maino.

The disappearance of cash, according to the authors, could come about either through direct policy or as a natural part of innovation and digital currency adoption.

They say that “the introduction of a DC [Digital Currency] in a diverse payment ecosystem—comprising cash, traditional payment cards, and modern electronic money—where the use of physical cash has already declined significantly, could lead to the complete disappearance of cash, even if such an outcome were not an intentional policy objective.”

READ: Financial expert warns all-digital monetary system would enable ‘complete control’ of citizens

The authors looked at how merchants and customers use physical cash and cards, and simulated how the introduction of digital currencies could either complement cash and cards or wipe them out completely.

According to the report, the introduction of a new currency can alter the market equilibrium in several qualitatively different ways:

  1. It may displace one of the exiting currencies (either cash or cards);
  2. It may replace both currencies; or
  3. It may continue to be used indefinitely alongside the other two currencies.

 

Programmable digital currencies like Central Bank Digital Currencies (CBDCs) cannot operate without pegging every user to a digital identity.

What’s more, these programmable digital currencies can be controlled remotely, so that taxes and fines could automatically be taken out of accounts, or so that restrictions could be placed on what you could buy, where you could buy it and when.

Last year, the IMF published a policy brief acknowledging that CBDCs could be used for state surveillance while posing risks to privacy and cybersecurity that could undermine trust in central bank money.

According to the November 2024 IMF brief, Central Bank Digital Currency: Progress And Further Considerations:

CBDC, as a digital form of central bank money, may allow for a ‘digital trail’—data—to be accessed, collected, processed and stored.

In contrast to cash, CBDC could be designed to potentially include a wealth of personal data encapsulating transaction histories, user demographics, and behavioral patterns.

Personal data could establish a link between counterparty identities and transactions.

While the IMF acknowledges the risks to privacy, the potential for government surveillance, and how public and private entities could leverage user data for nefarious means, it is still plowing ahead with a CBDC Handbook for central banks and governments to follow during their rollouts.

READ: International Monetary Fund ‘working hard’ on a global Central Bank Digital Currency platform

The IMF consistently says that digital currencies should be complementary to physical cash and to not replace it, but all signs point towards the erosion of cash over time, whether through convenience or coercion — carrot or stick.

Speaking at the World Economic Forum’s (WEF) Special Meeting on Global Collaboration, Growth and Energy Development last year, Central Bank of Bahrain governor Khalid Humaidan told the panel “Open Forum: The Digital Currencies’ Opportunity in the Middle East” that one of the goals of CBDC was to replace cash, at least in Bahrain, and to go “one hundred percent digital.”

“If we think cash is the analogue and digital currency is the form of digital — CBDC is the digital form of cash — today, clearly we’re in a hybrid situation; we’re using both,” said Humaidan.

We know in the past when it comes to cash, central bankers were very much in control with all aspects of cash, and now we’re comfortable to the point where the private sector plays a big role in the printing of the cash, in the distribution of the cash, and with the private sector we use interest rates to manage the supply of cash.

The same thing is likely to happen with CBDC. Yes, the central bank will have a role, but at some point in time — the same way we don’t call it ‘central bank cash’ — we’re probably going to stop calling it central bank digital currency.

It’s going to be a digital form of the cash, and at some point in time hopefully we will be able to be one hundred percent digital.

While the IMF advises to not eliminate cash altogether, central banks and governments are already moving in that direction.

Furthermore, a WEF Agenda blog post from September, 2017 lists the “gradual obsolescence of paper currency” as being “characteristic of a well-designed CBDC.”

If cash were to go extinct, the latest IMF working paper warns, “reintroducing cash in a non-cash system would be challenging and costly.”

Therefore, the authors conclude:

To safeguard the continued utilization of cash and to uphold the equilibrium of the payment system, the study advocates for a proactive policy approach and for the implementation of measures aimed at ensuring the sustained relevance of physical currency, especially in scenarios where the introduction of new digital currencies might inadvertently lead to the extinction of traditional cash.

The IMF working paper Could Digital Currencies Lead to the Disappearance of Cash from the Market? was published on the IMF website in March 2025; however, the paper was first published in the International Advances in Economic Research journal on February 19, 2024 under its original title, Could CBDCs Lead to Cash Extinction? Insights from a ‘Merchant-Customer’ Model.

Reprinted with permission from The Sociable. 

Note from LifeSiteNews co-founder Steve Jalsevac: This article is a must-read and view for all readers because of the profound personal impact a digital economy would have on every individual and every family.

The great Catherine Austin Fitts has strongly recommended that every citizen use cash as much as possible for purchases. She says that if millions did this, it would delay, if not stop, a forced digital economy. She should know. Fitts emphasizes, “In a highly leveraged financial system such as we have, a single individual counts for a lot.”

See her article, I Want to Stop CBDCs – What Can I Do

The increased use of credit and debit cards, including phone and other digital payment systems, is tempting because of their convenience. Still, it is also your cooperation in building your economic prison and total control of all that you say and do, where and when you travel, what you buy or subscribe to, and so on. We are facing a totalitarian control that has never before been experienced in human history. It is beyond frightening.

Carrying and using cash for purchases, and refusing to purchase anything from shops, restaurants or other services that do not accept cash or checks, is inconvenient and requires a little effort, commitment and some degree of courage.

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Banks

Liberal border bill could usher in cashless economy by outlawing cash payments

Published on June 7, 2025

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From LifeSiteNews

By Clare Marie Merkowsky

Bill C-2 has raised concerns from legal organizations that warn it could lead to a cashless economy in Canada by banning cash payments over $10,000.

The Liberals’ proposed border legislation may quietly usher in a cashless economy by banning cash payments.

On June 3, the Liberal Party introduced Bill C-2 to strengthen border security and outlaw cash payments over $10,000. Legal organizations have since warned that this is the first step to a cashless economy and digital ID system in Canada.

“Part 11 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to prohibit certain entities from accepting cash deposits from third parties and certain persons or entities from accepting cash payments, donations or deposits of $10,000 or more,” the legislation proposes.

While the bill purports to strengthen border security and restore Canada-U.S. relations, many have warned that government regulation of cash payments is a slippery slope.

In a June 4 X post, the Justice Centre for Constitutional Freedoms (JCCF) warned that “If Bill C-2 passes, it will become a Criminal Code offence for businesses, professionals, and charities to accept cash donations, deposits, or payments of $10,000 or more. Even if the $10,000 payment or donation is broken down into several smaller cash transactions, it will still be a crime for a business or charity to receive it.”

The JCCF pointed out that while cash payments of $10,000 are not common for Canadians, the government can easily reduce “the legal amount to $5,000, then $1,000, then $100, and eventually nothing.”

“Restricting the use of cash is a dangerous step towards tyranny and totalitarianism,” the organization warned. “Cash gives citizens privacy, autonomy, and freedom from surveillance by government and by banks, credit card companies, and other corporations.”

“If we cherish our privacy, we need to defend our freedom to choose cash, in the amount of our choosing,” it continued. “This includes, for example, our right to pay $10,000 cash for a car, or to donate $10,000 (or more) to a charity.”

“Law enforcement already has the tools to fight crime,” JCCF declared. “Perhaps they need a bigger budget to hire more people, or perhaps they need to use existing tools more effectively. In a free society, violating our right to use cash is not the answer.”

In winter 2022, the Liberal government, under former Prime Minister Justin Trudeau, froze the bank accounts of those who donated to the Freedom Convoy, which featured thousands of Canadians camping in front of Parliament to protest COVID mandates.

Similarly, Liberal Prime Minister Mark Carney’s move to restrict Canadians is hardly surprising considering his close ties to the World Economic Forum and push for digital currency.

In a 2021 article, the National Post noted that “since the advent of the COVID pandemic, Carney has been front and centre in the promotion of a political agenda known as the ‘Great Reset,’ or the ‘Green New Deal,’ or ‘Building Back Better.’

“Carney’s Brave New World will be one of severely constrained choice, less flying, less meat, more inconvenience and more poverty,” the outlet continued.

In light of Carney’s new leadership over Canadians, many are sounding alarm over his distinctly anti-freedom ideas.

Carney, whose ties to globalist groups have had Conservative Party leader Pierre Poilievre call him the World Economic Forum’s “golden boy”. He has also previously endorsed the carbon tax and even criticized Trudeau when the tax was  exempted from home heating oil in an effort to reduce costs for some Canadians.

Carney, who as reported by LifeSiteNews, has admitted he is an “elitist” and a “globalist.” Just recently, he criticized U.S. President Donald Trump for targeting woke ideology and has vowed to promote “inclusiveness” in Canada.

Carney also said that he is willing to use all government powers, including “emergency powers,” to enforce his energy plan.

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Banks

Canada Pension Plan becomes latest institution to drop carbon ‘net zero’ target

Published on May 31, 2025

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From LifeSiteNews

By Anthony Murdoch

Changes to the law require companies to more rigorously prove their environmental claims.

The investment group in charge of Canada’s governmental pension plan has ditched its “net zero” mandate, joining a growing list of major institutions doing the same.

According to the Canada Pension Plan (CPP) Investments’ latest annual report, the entity is no longer committed to carbon “net-zero” by 2050. The CPP’s ditching of the target comes after a number of major institutions, including the Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Montreal (BMO), National Bank of Canada, and the Canadian Imperial Bank of Commerce (CIBC), all made similar moves in recent months.

While ditching the net-zero effort, chief executive of CPP Investments John Graham maintained that it is still “really important to incorporate climate and incorporate sustainability” in its long-term investment portfolio.

The dropping of the “climate” target comes as recent changes to Canada’s Competition Act now mandate that companies prove any environmental claims they make, with Graham insinuating these changes were a factor in the decision.

“Recent legal developments in Canada have introduced, kind of, new considerations around how net-zero commitments are interpreted, so that’s caused us to change a little bit how we talk about it, but nothing’s changed on what we’re actually doing.”

Over the past decade, left-wing activists have used “net zero” and “environmental, social & governance” (ESG) standards to encourage major Canadian and U.S. corporations to take particular stands on political and cultural issues, notably in promotion of homosexuality, transgenderism, race relations, the environment, and abortion.

Outside of Canada, many major corporations have announced they are walking back DEI and other related policies. Some of the most notable include Lowe’s, Jack Daniel’s, and Harley Davidson. Other companies such as Disney, Target, and Bud Light have faced negative sales due to consumers fighting back and refusing to patronize the businesses.

Since taking power in 2015, the Liberal government, first under Justin Trudeau and now under Mark Carney, has continued to push a radical environmental agenda in line with those promoted by the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.” Part of this push includes the promotion of so called net-zero energy by as early as 2035.

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