The Growing Influence of Governments in Payments Digitization
The continuous advancement of payments digitization allows governments to have greater control and potentially censor economic activities. Thisย implies that interventions by governments will become more frequent and easier to implement, eliminating the need for emergency measures or relying on compliant private-sector banks.
The Role of Monetaryย Authority Digitalย currencies (CBDCs)
Monetaryย authority digitalย currencies (CBDCs), asย ofย now being developed worldwide, will incorporate features that allow funds to be frozen or confiscated directly within the currency itself. This programmable money envisioned by CBDC advocates gives the state the power to restrict the use of national currency, regardless of the chosen bank or payments provider. This raises concerns about mistreatment by corporations, as users become vulnerable to the stateโs control.
Althoughย while some central banks claim they doย not seek complete control over usersโ money, the implementation of CBDCs opens the door to extensive control. Achieving social policy goals, such as improving tax collection and combating financial crimes, would be nearly impossible without a complete CBDC takeover.
The Impact on Users and Commercial Banks
Regardless of the resistance from commercial banks, a wholeย lotย of number of people will soonerย orย later adopt CBDCs, possibly exclusively. Unfortunately, users can expect poor treatment based on statements from central bankers themselves: locked funds, routine surveillance, arbitrary regulations embedded in the currency, and mandatory universal know-your-customer (KYC) procedures using iris scans and fingerprints.
Brazilโs monetaryย authority has even released documentation and software for a CBDC pilot that grants the Government the authority to freeze user balances, transfer balances to other accounts, or pause the entire currency.
Rejecting Total Surveillance and Control
Justifying this radical transformation of money is the belief that it can prevent illicit activities such as tax evasion and money laundering. Nonetheless, we doย not impose constant tracking on every car regardlessย of their probable for illegal activities. It isย importantย to resist a program that promotes total surveillance and control over currency, as it restricts individual freedom and lacks accountability.
We must question the qualifications of central bankers to interpret and enforce laws, as well as the extent of their jurisdiction over illicit activities. Are they acting based on statutes passed by elected representatives or unaccountable bureaucratic policies?
Choosing to Defend the Right to Transact
Instead of passively accepting the erosion of our rights, we have the option to assert and protect the right to transact freely. Throughout history, this natural right has been upheld until recently. If our institutions wish to take away this fundamental right, they must provide a coherent justification, which is unlikely.
Transacting freely does not legalize illegal behavior; it simply impliesย that policing is conducted through appropriate channels without centralized control over the means of exchange. To counteract the growing financial panopticon, adopting and utilizing digitalย currencies becomes the practical solution.
As illustrated by the Canadian governmentโs failed attempt to freeze usersโ funds in self-custodied Bitcoinย (BTC) wallets, it is clear that digitalย currency safeguards the right to transact freely.
Hot Take:
The increasing influence of governments in payments digitization raises concerns about theย capacity for censorship and control over economic activities. Monetaryย authority digitalย currencies (CBDCs) offer programmable money that allows the state to restrict the use of national currency and implement extensive control. Users may face mistreatment, with locked funds, routine surveillance, and mandatory KYC procedures. It isย importantย to resist total surveillance and control, defending the right to transact freely. Adopting and using digitalย currencies becomes the practical route to counteract the encroaching financial panopticon.
Cora Skindell is a standout figure in the world of cryptocurrency analysis, research, and editorial expertise. As a seasoned crypto analyst and researcher, Cora’s insights delve deep into the complexities of digital assets, resonating with a diverse audience. Her ability to dissect intricate crypto concepts is complemented by her adept editorial skills, enabling her to distill complex information into easily understandable content.
