CBDC - Central Bank Digital Currency: Shootin' It Straight with Stan®
Today's topic is a good one. I got to read from it because it just popped the other day. I've got to talk about that because I've been talking about it before, but it didn't have an acronym, and now it has an acronym, and that's cool. I like acronyms like PILL, principal protection, income for life, legacy, and long-term care. But this one is CBDC. No, it's not marijuana. CBDC, central bank digital currency, central bank digital currency. And you say, "Wait a minute, Stan. Aren't you the annuity man®?" Yes, and I'm glad you brought that up. I am the annuity man, but I have my finger on the pulse of everything relevant, and that's relevant right now. Crypto, crypto, crypto, blockchain, blockchain, blockchain. This central bank digital currency is happening.
The Biden administration... I know you're watching this 30 years from now; you’re going, "Who's Biden?" He's the president, our president now. They announced that they are looking into and have a focus group, a committee, and people getting paid a lot of money to look into possibly putting in a digital currency for the United States of America. And this is all revolving around Mr. Putin going a little crazy and using cryptocurrency to thwart the grid. He's thwarting the United States government and the banking systems, et cetera, using crypto, which leads the administration to be a little more aggressive.
We're not the first ones to do that. China's already done it. My favorite CBDC is from The Bahamas. They've already done one, called the sand dollar. I love that. But I think, and I've said this before, the blockchain technology is a valid technology for all applications, not just crypto. Crypto rides on top of that; digital currency rides on top of blockchain technology.
And I know if you're saying, "Wait a minute, Stan. What does this have to do with annuities?" I'm not sure right now, but I will guarantee you that it will have something to do with annuities shortly because if we're moving the dollar or the dollar equivalency to something like this, or it's a hybrid... I hate the word hybrid. A hybrid is a plant, a mattress, a car, not an annuity. But in this case, I'm going to call it a hybrid because I think they're going to start moving toward this digital currency for many reasons.
There are conspiracy theories all across the board on why they shouldn't. There are pound the table people who are bullish on crypto and why they should. My conspiracy theory, because of course the annuity man's conspiracy theory makes more sense than everyone else's, is that when the government goes to crypto, there’s not going to be an April 15th anymore. They can tax this in real-time every single day. And oh, by the way, spoiler alert, they probably will.
Once again, forget crypto for a second. Blockchain technology is very, very strong. Hard to be fraudulent on the blockchain. And crypto... I understand, "Stan, that's like two little bubbles. It's got no underlying value, no intrinsic value." I understand all that, I understand all that, but it's not going away. Can you nod your head? And I knew it was just a matter of time before governments like ours, the United States of America... Power. That’s what talking about.
We're going to go in this direction. And the Putin into Ukraine nonsense that's happening gave them license to go a little bit faster because this gives them the excuse to, "We're going to try to reel in Mr. Putin." Yeah. I think Putin's 5'2". No offense to people out there that are vertically challenged. That's the politically correct annuity man version of short. No offense to them, but he's 5'2". When Condoleezza Rice met with him one time, Putin stood up, and she stood up. She's a full foot taller than him. That was amazing to me. Maybe he's like a jockey.
Anyway, the crypto in the central bank digital currency is something that the annuity companies are watching. I know for a fact that one of my compatriots is out there... I won't mention his name. He is a good friend. I am used to being a competitor. Now he has moved on to the crypto space, and he's looking into can the cryptocurrencies be a part of annuities in the future? How's that going to be priced? Because of what's happening with this digital currency and the central banks looking to implement digital currencies here in the United States and follow other countries like China and The Bahamas, the annuity industry needs to keep an eye on it. I'm certainly keeping an eye on it. You don't need to say, "Well, there's no value. I read a story; this guy said there's no value. I read a story; this guy said this is crap." They might be, right, okay? They might be right. And it has been volatile as heck.
And I think the other thing that's interesting about crypto, just to get it out of my lane just a shade, is that I think over 50% of the people buying crypto shouldn't be buying crypto. They’re young; they don't have any money. It's a unique situation where people from lower-income areas think this is their way out.
I spoke with Paul Merriman the other day, who's just a guru genius of all markets, and there was a recent study he was telling me about that the millennials, the youngsters, the babies out there... I call them babies because I have cowboy boots, all older than most. They trust crypto and the underlying, just cryptocurrency in general, more than the S&P 500. What? That's incredible. That's something to pay attention to. And I think it's very, very interesting to follow.
I'm doing this is that we're going to stay relevant with what's being talked about. I'm not going to be Tucker Carlson, Rachel Maddow, or Chris Cuomo and spew political leanings because I don't have one. I'm a capitalist, but we have to keep our eye on the prize here.
Now, you've got to say, "Wait a minute, Stan. Central bank digital currency, crypto, blockchain; what's your prediction soothsayer, swami, Stan, Stan." I'll tell you what it is. In the future, I believe... And this, and I'm sure my CEO's going to go, "No, this is never going to happen," because she's pragmatic and realistic, and I'm a dreamer, I'm a visionary. I'm looking off to the future. But I see the pooling of money, pooling of risk, using the blockchain, using crypto to offer contractual guarantees. Really? Could that happen? Yeah, it could. Will it happen soon? No, but it might.
I mean, the annuity industries like the old travel agencies. People say, "What's the annuity industry like Stan, the annuity man®? You've worked for the big ones. Morgan Stanley and Dean Witter and Paine Webber, and UBS. You've been there. You've been in the big buildings. You had full marble offices." Yes, I have, so when I went out to the annuity industry to dominate it, I have by telling the truth. That's my business model; telling the truth, to be brutally factual. My grandfather said, "If you tell the truth, you don't have to remember anything." But when I got out here, the annuity industry and it kind of still is, it's like the old travel agency industry. You've got one in every town, and you go there, and they book the travel. You got one in every town, an annuity agent, and they buy an annuity.
See, I am changing that. I'm a direct-to-consumer person, as you know, licensed in all 50 states, and we sell directly to you, the consumer, and cut out all the nonsense. I think blockchain and this central bank digital currency strategy by governments will open it up in the future. And the products that are coming out, I can't tell you what they'll be, but I think they'll be pro-consumer because they'll be transparent, and you'll get all of the cuts and overrides and hidden fees and backend stuff and attaboy trips and all that BS taken out of the guarantees. And I will love it. And I will love it even if it puts Stan The Annuity Man out of business because then I could go on my world tour playing lead guitar for a band I haven't started yet, but that is the dream.
Keep an eye on this central bank’s digital currency. I think it's interesting. They need to contact me to name it.
Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.