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The Gray Market Role of Defunct Coinage in a Cashless Society


I've received several e-mails and letters from SurvivalBlog readers, asking me if and when I believe that a "cashless society" is coming. My response is: Yes, I do believe that it is coming, but I can't say when. There are some that have argued that a currency collapse will be used as the pretense to implement a multi-continental or even global digital currency. Most likely it would be in the form of a debit card, similar to what has been popularized in Germany with EuroCheck (EC) Cards. I mentioned these cards in my most recent book, "Survivors: A Novel of the Coming Collapse". These cash equivalent debit cards would resemble outwardly a bank debit card, but would be issued by the Federal Reserve, and would be tied to your Social Security Number. Like a debit card, they would have a PIN used for password protection.

Say that a cashless society comes about. What will happen to all of the old paper currency? There will obviously have to be a deadline for it to be turned in for exchange. (For a credit on your card.) But what about coinage? Will that also be phased out? Officially, yes, but I predict that unofficially, there will still be a lot of it in circulation, in an entirely unofficial Gray Market.

In my estimation, coinage cannot be completely banned, for several reasons:

1.) Large numismatic collections exist, with many owned by wealthy and influential people. There is a long-standing legitimate reason to preserve them. It is noteworthy that even the notorious gold coin and bullion seizure by the FDR Administration under Executive Order 6102 exempted numismatic coins. To ban coin collections would cause a huge uproar and surely be deemed an illegal "taking" by any reputable court.


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