CBDC privacy promises

The difference between a bad electronic cash system and well-developed digital cash will determine whether we will have a dictatorship or a real democracy

– David Chaum

CBDCs

A perceived need for control has set central banks on a path to create central bank digital currencies (CBDCs)
With CBDCs, all transactions will be fully transparent to the central bank or its intermediaries
Consumption of goods and services could be limited (ex ante)…
… by the central bank, by other government entities or by intermediaries

Their promises are not credible

Central banks say they will not be able to see all details

Only intermediaries will (primarily banks)

Central banks also promise that privacy will be preserved

However, AML/KYC regulations will make sure the data exists

Who will get to use the data?

The IC

The Intelligence Community will get access to the data. The NSA, CIA, FBI, and so on will have access to the data - otherwise they’ll just steal it

The Police

The Police will be given access. If not, the Intelligence Community will give them the data (see parallell construction)

The Banks

The Banks. Employees at the intermediaries will have access to the data in order to be able to solve customer problems

The Taxman

The Taxman. The more we use any payment alternatives, the more the IRS will want to see what we are doing. And eventually they’ll get their way

Social Services. Once the IRS gets access, non-core parts of the government will want to get their feet wet as well

Your data will be all over the place

By now you may have a dozen authorities getting access, and private investigators, and hackers - a lot of actors will be able to access it

Data which were supposed to be private. After all, they promised

And what about the next government?

💡 It’s perplexing that those who fear a rise of fascism show no concern about CBDCs, which would make implementation of technological fascism much simpler