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But KYC generally is not required for cash transactions. Why can't we have anonymous digital transactions, as long as they are size-capped and rate-limited ?
by billdietrich1 5y ago
But KYC generally is not required for cash transactions. Why can't we have anonymous digital transactions, as long as they are size-capped and rate-limited ? How is sending $300 through that kind of CBDC system different from me handing $300 cash to my friend ? Is it that the CBDC just wouldn't have the "friction" that cash does, so any limits are evaded easily ?
- aaaaaaaaata 5y ago> Why can't we have anonymous digital transactions It makes law enforcement work.
- billdietrich1 5y agoBut we have anonymous cash transactions, and somehow law enforcement still works.
- sofixa 5y agoIf they're anonymous, what's stopping a bad actor from creating tons of accounts to circumvent limitations? Cash is impractical, and on and offboarding of serious sums raises questions ( you can't easily withdraw or deposit massive amounts of cash without the bank asking questions/flagging transactions, and even if you could, transporting it is cumbersome).
- billdietrich1 5y agoIs there no good way to size-cap and rate-limit anonymous accounts ? Maybe not, if the bad guys slowly build up a large mesh of accounts and use bots that use lots of different IP addresses etc.