Decisive social experiment or digital enslavement

Decisive social experiment or digital enslavement

Digital central bank currencies (CBDCs) slowly become reality. The initial hype may have subsided, but to displeasure the crypto supporters, these digitized versions of legal means of payment seem to be inevitable. So far, 100 countries have been researching the concept in any form.

Although CBDCs have not yet been fully introduced, they have managed to cause numerous narratives.

social experiment?

The Rosalind project-an initiative of the Central Bank for Digital Currencies (CBDC) with the Bank of England, in joint participation of the up to Innovation Hub London Center-successfully developed 33 API functions and researched more than 30 CBDC applications for retail, which cover a wide range of domains for private individuals as well as for companies.

ripple has also teamed up with the Colombian central bank Banco de la República to test CBDC.

The recent events show that, according to Kucoin, CBDCs have developed into a strong indicator of the increasing importance of blockchain technology and that they have been mature beyond their initial perception as fleeting enthusiasm. This was said by a spokesman for the crypto potato ,

"With the rapid development of the Internet, e-commerce and online transactions have become more important. Whether CBDCs in different countries or blockchain-based cryptocurrencies, I think it's all a great social experiment-it brings humanity to a new digital world."

he further said that these explorations deserve recognition and praise "because they will contribute to the progress of society and to build a better world for humanity".

one of the main factors that have promoted the change in the risk of opposite and the need for a trustworthy service provider in an effectively regulated jurisdiction, which is comprehensive, transparent and logical, is the sudden collapse of the crypto empire by Sam Bankman-Fried-FTX.

"After all, one of the main advantages of CBDCs compared to other cryptocurrencies is their higher level of security, stability and compliance with legal regulations. The use of a high -quality, secure and stable CBDC for processing transactions with digital assets would release the potential of the emerging ecosystem for digital assets and at the same time the overall risk profile of such transactions reduce. “

digital enslavement

While many experts believe that CBDCs should be seen as something positive for the blockchain community, since they underline the government's interest in the technology that is used to reduce global payment risk, many supporters of data protection are of a different opinion. Your main argument is digital enslavement.

In conversation with cryptocolor on this topic, Vineeth Bhuvanagiri, Managing Director of Emurgo Fintech, said that CBDCs, if they are properly implemented, have the potential to be a massive real application for technology.

For the governments that deal with this topic, however, it is important to “fully understand what the technology is good for and where it does not offer any added value, because I think a large part of the skepticism of CBDCs is based on the intention of using it as such.” A mechanism of capital control. " The managing director added:

"This would run counter to the core ethos of the blockchain. The central promise of blockchain technology is uncensable financial freedom, and if the government has the intention to enforce more control, blockchain technology is not the right tool for this."

In order to tackle this aspect, the Deputy Ministry of Finance, Graham Steele, said that the minimization of illegal transactions while maintaining the privacy of the users was a main feature of a CBDC for retail. He spoke about the inclusion of technologies to improve privacy to protect the anonymity of users.

Steele explained both the advantages and the risks of a possible CBDC and emphasized that it could promote a competitive payment environment. But the resistance of presidential candidates Robert F. Kennedy Jr. and Ron Desantis was considerable. The duo claims that such a government payment system would give too much control.

legal challenges

still in its infancy, said Newns from SDX that the greatest legal challenges in connection with the global introduction are created and will depend on the perspective of harmonizing the regulatory framework and the cooperation between central banks around the world in order to support interoperability and cross -border transactions.

According to the Bhuvanagiri from Emurgo, the legal debates about CBDCs will ultimately be limited to the data protection talks and the restrictions that the government would like to impose on them. He said that if the government treats CBDCs such as cash, they could be freely moved all over the world after their edition. Such a scenario is considered ideal because it would use the advantages of blockchain technology.

"People would have the opportunity to keep their own assets and do business with them at will, which would lead to greater financial freedom at the expense of an increased risk that they are used for shameful purposes." How the government monitors or limits the transactions would be the hot topic of the debate. ”

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