is a digital version of a country's national currency that
is issued and backed by the country's central bank. It
can be used in the same way as physical cash and can
be stored and transferred electronically. CBDC's are being considered by many countries as a way to modernize their payment systems and improve financial inclusion, but the actual implementation and use of CBDC's are still under development and subject to regulatory approval.
Central Bank Digital Currency
CBDC is a programable form of money built on technology similar to crypto-currencies Bitcoin or Ethereum. CBDC works like a coupon/voucher. It may be programmed to limit purchases of only approved items. It's not your money.
Cashless digital transactions currently occur using credit cards and ATM cards. Such transactions cannot be externally controlled like a CBDC.
CBDC allows politicians and bankers to digitally track and control all of your spending. Every transaction is recorded forever. Unlike crypto-currencies, there is no anonymity. Executive Order 14067 - CBDC Tracker
CBDC can be assigned a carbon score to limit your ability to purchase items like gas and meat.
CBDC can be assigned a location in which you may spend, thus limiting your ability to travel. - LINK
A digital ID is a way to verify your
identity using a combination
of personal information, credentials,
and biometrics, such as fingerprints
or facial recognition. It can be used
for a variety of purposes, such as accessing government services, banking, or proving your age for online purchases. Digital ID is said to be designed as a more secure and convenient form of identification than traditional ID's such as a driver's license or passport.
Such as privacy concerns, security
risks, and potential for misuse.
Privacy concerns may arise from
the collection and storage of
personal information, which may be vulnerable
to hacking or data breaches. Security risks include
the possibility of identity theft or fraud, as well as the potential for unauthorized access to sensitive information. Additionally, there is a risk of misuses, such as government surveillance or discrimination based on the information contained in a Digital ID.
Digital ID systems can have several potential pitfalls...
Privacy concerns: CBDCs could potentially be used to track and monitor individuals' financial transactions, which could lead to a loss of privacy and civil liberties.
Government control: The use of CBDCs could give government more control over individuals' financial transactions and potentially lead to increased government surveillance and monitoring.
Limited financial freedom: CBDCs could limit individuals' ability to make anonymous or untraceable financial transactions, which could restrict their financial freedom.
Censorship resistance: CBDCs could be controlled by central authorities and may have the ability to block or freeze transactions, which could be used to censor certain individuals or groups.
There are several potential downsides to implementing a Central Bank Digital Currency that could impact personal freedoms, including:
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Finally, here are a few points of concern regarding CBDC and Digital ID working in unison.
CBDC (Central Bank Digital Currency) and Digital ID systems, while they may seem like they would work well together, could also have some negative consequences. One potential issue is privacy concerns, as a Digital ID system would likely collect a significant amount of personal data, which could be vulnerable to hacking or misuse by those with access to it. Additionally, the use of a Digital ID in conjunction with a CBDC could also centralize control over the financial system in the hands of a small group of actors, potentially undermining the decentralization and democratic control that many proponents of digital currencies value. Finally, it could also bring about financial exclusion for those who lack access to Digital ID and also for those who may not want to share their personal information.
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