Terry Sawchuk on The Steve Gruber Show: The Downside of Central Bank Digital Currencies

Mar 11, 2022 | Blog, Blogs, In the News, The Steve Gruber Show

On Wednesday, March 9, President Biden signed an executive order to explore establishing a U.S. Central Bank Digital Currencies, or CBDCs, which are digital tokens, similar crypto, that are issued by central banks. What might these mean for investors? The Steve Gruber Show recently spoke with Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.

“I think the crypto space felt pretty good because they didn’t just shoot it down right away. But, in the end, I am less concerned about that and am much more concerned about some of the key elements that could go with a Central Bank Digital Currency,” says Sawchuk.

Sawchuk is hesitant towards CBDCs largely because of the potential monetary control it could have on families across the country. “It’s programmable money, so they could personalize your inflation rate,” he explains. For example, Sawchuk cautions that “if you are a saver and not a spender, they can incentivize you, or disincentivize you, by giving you negative interest rates to leave your money in there.”

Additionally, CBDCs open the door to the government’s ability to place expiration dates on its currency. “They can issue money and say if you don’t spend it in a certain period of time, it’s not yours,” Sawchuk says.

Click here to watch the entire segment.


Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc. 

Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.