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The Truth About CBDCs… Design Choices by ECB & FED Analysed… Both Are
Aiming At Tight Control Over Accounts, Interest and Spending... A
Digital Prison Is Being Built in the Shadows… [Due Diligence]
self.ethereum
by DecentralizedLaw2
…The Truth About CBDCs… Ominous Design Revealed… A Digital Prison Is
Being Built in the Shadows…
Massive overreach of Central Banks underway.They are designing a new
kind of money allowing them to:
Establish centralized settlement of ALL payments…
Tie digital identities to all transactions and record them on a
central bank ledger forever…
Force built-in features such as limits on how much CBDC you can
have in your account, negative interest rates, account charges in line
with regulatory objectives, and caps on conversions and spending…
Create “money” that is traceable, programmable, taxable, and
subject to the monetary whims of central planners…
Stamp out spending without permission and slowly phase out cash…
The war on money continues. The aim: to replace cash with a system of
centralized control over ALL transactions and account balances.
This report explains exactly what to expect from Central Bank Digital
Currencies (CBDCs); it looks at the possible design options, what
central banks have decided so far, and the likely outcomes.
The ugly conclusion is that CBDCs are a new form of currency that
allows a small group of unelected people control over what we can, and
cannot do with our own money…
From the point of view of central banks, privacy means that the
organisations monitoring and facilitating your payments are under
constraints as to what they can and have to do with your data.23) Moreover, central banks compare the privacy of CBDCs with data-mining
private financial service companies, and with transactions being done
on public blockchains. They argue that in that light, public
institutions are better at safeguarding privacy.24)
For the design of a CBDC, a central bank has to make a decision as to
what level of privacy a coin will have, taking into account that full
privacy is considered incompatible with other policy objectives such
as KYC and AML compliance. As we will see, there are strong
indications that privacy (as it is understood by the crypto industry)
is not going to be built into the CBDC system.
Interoperability
Central banks will have to make certain design choices such as whether
foreigners are to be able to hold accounts with the central bank, or
if there is to be some sort of exchange facility, perhaps similar to
what the crypto industry calls an atomic swap.
A coordinated CBDC design effort could take a clean-slate perspective
and incorporate cross-border payment options right from the start.25)
Private vs public chain
On a final note, investors in existing blockchains, such as XLM or
XRP, have been publicly claiming that CBDCs will be built with their
chain as the base layer. This is simply NOT going to happen.
As previously mentioned, CBDCs are liabilities on the balance sheet of
the central bank. There is no way that they are going to base this on
an existing blockchain, because it would mean they would have to take
full control over the network.
Now that we understand the different design choices available, we can
look behind the scenes at how central banks are applying them―starting
with the ECB!