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Brazil’s CBDC can freeze money, reduce balances

4 points by EGreg 3y ago

EGreg 3y ago
People on HN like to talk about how Web3 and blockchain has no applications. For people around the world, self-sovereignty over money / savings and trust in a system are important applications even in and of themselves. We have seen over the last decade how technology has also increased centralized control, starting with social networks, and now governments are looking to put their money supply under centralized control. In some countries, like China and Sweden, this “integrated reality” is already here. If we all agree to use National IDs and centralized money supplies, then all of us will be brought under central control. And while one administration may not do anything too bad with that control, future administrations or AI may very well begin to move people as pieces on a chessboard, for whatever outcome they want to achieve. They can do it secretly, or subvert levers of democracy to continue it openly. Thoughts? What is the alternative to the coming centralization of control?
- rvz 3y ago
  This. Precisely and it really doesn't surprise me. Many central banks are developing their own CBDCs and they certainly have the capabilities of freezing money, maximum saving limits and expiry dates. Of course, people on HN are oblivious to this since it doesn't affect them and at the same time celebrating India's E-RUPI technology rails which that is essentially a CBDC on top of UPI. But it only takes the government to do something extremely unpopular for unrest to happen and we'll see how they can essentially use CBDCs to control money at scale and even force adoption if the general public doesn't like it by banning ATMs. I've said this all before [0][1], but for some strange reason most people on HN love to ignore the point as to why CBDCs are being created in the first place and it is all about centralization of control. [0] https://news.ycombinator.com/item?id=36012310 https://news.ycombinator.com/item?id=36012310 [1] https://news.ycombinator.com/item?id=34802820 https://news.ycombinator.com/item?id=34802820
Bostonian 3y ago
Of course -- this is why I don't trust CBDC. As it is, I rarely need to use cash, making purchases with my credit card and paying utility bills through EFT from my bank account. I don't see what problem a CBDC is supposed to solve.
- EGreg 3y ago
  And how do you cover your credit card and bank account debts?

4 points by EGreg 3y ago

People on HN like to talk about how Web3 and blockchain has no applications. For people around the world, self-sovereignty over money / savings and trust in a system are important applications even in and of themselves. We have seen over the last decade how technology has also increased centralized control, starting with social networks, and now governments are looking to put their money supply under centralized control. In some countries, like China and Sweden, this “integrated reality” is already here. If we all agree to use National IDs and centralized money supplies, then all of us will be brought under central control. And while one administration may not do anything too bad with that control, future administrations or AI may very well begin to move people as pieces on a chessboard, for whatever outcome they want to achieve. They can do it secretly, or subvert levers of democracy to continue it openly. Thoughts? What is the alternative to the coming centralization of control?

rvz 3y ago
This. Precisely and it really doesn't surprise me. Many central banks are developing their own CBDCs and they certainly have the capabilities of freezing money, maximum saving limits and expiry dates. Of course, people on HN are oblivious to this since it doesn't affect them and at the same time celebrating India's E-RUPI technology rails which that is essentially a CBDC on top of UPI. But it only takes the government to do something extremely unpopular for unrest to happen and we'll see how they can essentially use CBDCs to control money at scale and even force adoption if the general public doesn't like it by banning ATMs. I've said this all before [0][1], but for some strange reason most people on HN love to ignore the point as to why CBDCs are being created in the first place and it is all about centralization of control. [0] https://news.ycombinator.com/item?id=36012310 https://news.ycombinator.com/item?id=36012310 [1] https://news.ycombinator.com/item?id=34802820 https://news.ycombinator.com/item?id=34802820

Bostonian 3y ago

Of course -- this is why I don't trust CBDC. As it is, I rarely need to use cash, making purchases with my credit card and paying utility bills through EFT from my bank account. I don't see what problem a CBDC is supposed to solve.

EGreg 3y ago
And how do you cover your credit card and bank account debts?