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Valhalla Network is a Decentralised Autonomous Organisation (DAO) to establish and own a global network of community banks. It is led by Founder Oliver Studd and Founding Advisor Professor Richard Werner.
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——— P R O F E S S O R W E R N E R ———-
Richard Werner is the inventor of Quantitative Easing and author of the Japanese best-selling book ‘Princes Of The Yen’. To hear the full story, watch the documentary film of the book: https://www.youtube.com/watch?v=p5Ac7ap_MAY
Website: https://professorwerner.org/
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The controversial economist laid out his arguments for opposing the introduction of Central Bank Digital Currencies (CBDCs) and stressed the importance of retaining cash and alternative digital settlements. “What we will get if we allow CBDCs is a Soviet-style economy. This is because CBDC is a misnomer. They are trying to confuse people with the acronym, saying the digital aspect is new. We have had Bank Digital Currencies (BDCs) for decades. The digital aspect is nothing new.” What is new is the centralization aspect of CBDCs and how they challenge the traditional relationship between banks and central banks. In effect, CBDCs have ushered in a fundamental change whereby individuals now have central bank accounts, breaking the long-standing agreement of central banks serving as “the bank of the banks.”
Prof. Werner argued that CBDCs introduce unfair competition as it allows a central bank, which is akin to a referee in a football match, now decide to participate in the game instead, namely the financial system, and compete directly with commercial banks. This direct competition creates a conflict of interest for central planners who also act as bank regulators. The result has been a consolidation of the banking system, with thousands of banks disappearing over the last few decades, impacting the financial landscape. “Since the introduction of the youngest major central bank, the ECB, 5,000 banks have disappeared.
The Federal Reserve has killed almost 10,000 banks in the last 35 years. That is what they are doing. They are consolidating the system,” said Prof. Werner. Introducing CBDCs comes with potential consequences, warned Prof. Werner. An extreme scenario is that CBDCs ultimately drive traditional banks out of business. Therefore, during the next banking crisis, people could easily shift their funds to the central bank system, leaving traditional banks to “switch off the lights” and effectively cease to exist. This could lead to a centralized banking system similar to the Soviet Union, which is essentially the dream of central planners.
Therefore, he argues, it is important to have a sufficient number of banks. The value of small banks lies particularly in community banks that operate in local areas. He sees local banks as the antidote to the European Central Bank’s consolidation efforts resulting in small banks disappearing. Despite such challenges, banking remains lucrative. “It is now extremely profitable to be a bank because interest margins are now very large. And as a small local bank, banking is one of the most profitable industries,” said Prof. Werner.
Prof. Werner added: “Growth is a necessary condition, in my view, to solve the problems of humanity. Most of our problems are human-made, and they can be solved by people. So let’s do it. Of course, the monetary system is key. That is a resource allocation tool. We have to understand it and make it transparent so that it really works for our benefit. “What CBDCs are doing is usurping a parliamentary, democratic prerogative, including essentially fiscal policy, how money is and can be spent. That is a parliamentary budgetary prerogative. CBDCs will reserve that and hand it over to the central planners. Now, in many countries, central banks are still privately owned.
Historically, they have been created by the big banking dynasties, the banking cartel that does not like small banks. “However, that is exactly what we need to do, to work in the opposite direction. So, while the central planners want to increase their power over our lives, it is literally not just about the total surveillance and monitoring of where we are, what you want, and what you’re spending your money on, it is about this programmability intervention. And if you do not follow the rules, or you have stepped outside the 15-minute walking distance area, well, your money is not going to work,” concluded Prof. Werner.
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