CBDCs | “Effecitively End Banking As I Know It.” – Saule Omarova (Joe Biden’s Nominee for comptroller of the currency before her nomination was withdrawn at her request on December 7, 2021)
The video discusses Professor Omerova’s radical ideas for becoming a federal regulator. She wants to end banking as we know it, nationalize retail banking, and control the money supply through individual Fed accounts, implementing a contractionary monetary policy. This would devastate community banks, as they rely on deposits for lending money to local businesses and residents. Under her plan, banks would become vassals of the government and lose their source of funding. Independent community bankers of America and banking associations from 41 states have opposed her nomination. The video also mentions that the entire theory in banking, especially local community banking, is based on gathering up deposits from the local community and loaning back out into the community. The government would take away people’s money by debiting those accounts, which could be perceived as the government taking away their money. This plan would also limit the ability of banks to lend to businesses and individuals who want to open new restaurants, tool shops, or buy their first home.
