Jul 23, 2021 20:00:00

It is pointed out that government-issued virtual currencies have a 'dark side' that leads to a dystopian society

As virtual currencies (cryptographic assets) such as Bitcoin are attracting attention, discussions on

central bank-issued digital currencies (CBDC) are also intensifying. Economist John Adams discussed the problems lurking in the CBDC.

The Potential Orwellian Horror of Central Bank Digital Currencies
https://www.adamseconomics.com/post/the-potential-orwellian-horror-of-central-bank-digital-currencies

According to a survey by the Bank for International Settlements, 86% of the central banks in each country are actively investigating CBDC, and 60% are undertaking CBDC-related experiments. We also know that 14% are embarking on a pilot project to put the CBDC to practical use.

According to Adams, the CBDC is 'a virtual form of physical cash, an electronic record or digital token issued and regulated by the country's central monetary authority, the central bank, through a centrally managed ledger.' Can be explained. CBDC 'enables fast and low cost settlement' 'in the event of a private company failure, the central bank can intervene in the payment system and financial system to stabilize the economy' 'have a bank account It is said that there are merits such as 'providing opportunities for those who do not have to participate in the digital economy.'

In terms of digital currency, CBDC is common with crypto assets such as Bitcoin, but while Bitcoin is decentralized and not regulated by the government or central banks, CBDC is 'centralized'. It is greatly influenced by the policies of the government. '

Therefore, when the CBDC is introduced into economic policy in earnest, the following 'negative side (dark side)' may become apparent, Adams points out.

• Oversight of all economic and financial transactions within the jurisdiction.
-Collect a large amount of data and use it for purposes other than its original purpose, such as law enforcement, discovery of political opponents, and dissidents' mouths.
• It is possible to introduce management policies such as the social credit system and impose economic sanctions on citizens engaged in activities not approved by the government or regulators.
• Government and central bank owners can inject public funds into the types of assets they like and withdraw funds from assets they don't like.
• Encourage businesses and individuals to use services and products that policy makers prefer.

For example, in China , experts have pointed out concerns that the digital yuan may increase the dominance of the Chinese Communist Party. 'China is known worldwide for building a totalitarian regime. Dangerously, even in the liberal democratic camp, CBDC is economical,' Adams said. It can be a policy tool that puts political power in the hands of politicians and bureaucrats. '