this post was submitted on 11 Oct 2023
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Privacy
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As an aside, is digital ID a gating factor in us bring forced to digital currency? Stores are already refusing cash, so we're practically digital already.
This. We already rely on digital, currently through a rather small number of payment providers who, at the end of the day, suck at privacy and security. I'm not terribly well educated on digital ID, but i generally don't get why it is any worse than our current system (in the US, at least) of a bunch of corp run finance systems which are already very transparent to government surveillance, and care more about appeasing shareholders than security or privacy.
Comparing visa/mastercard/discover/credit reporting/banks etc to a government based digital option, at least the government option can be beholden to voters and at least the government, as a whole, isn't serving shareholders wants over privacy/security.
It certainly means an authoritarian government could abuse the system more easily, but its a mistake to think that an authoritarian government can't already abuse the current system to the same extent.
Whether the US adopts their own stablecoin and bans/doesn't ban other crypto, and whether this digital ID thing is the harbinger of that, it wont change what the vast majority of people reach for at the end of the day. Which, pending massive societal upheaval, will be whatever the government backs.
There is a vast sea of difference between our existing banking infrastructure and the nightmare scenario of a CBDC. For example:
A digital ID system would solve many existing problems with how people interact with the government. It could enable massive efficiency gains and more secure, transparent voting. But it's also a requisite step to a mandatory CBDC.
Thanks for the detailed response, definitely a lot to consider there.
I think part of where I'm coming from is that i see the negative points, especially around preventing money being spent or gaining unfettered access to information, as items that are only a few laws away in event of a ultra-conservative majority, regardless of a digital ID system. With a MAGA-driven majority at some point there is not much in the way of patriot act 2: electric boogaloo, patriot act 3, 4, etc. So i tend to see the CBDC fear mongering as being distracted by the trees instead of considering the forest in total. There's not much to be done to prevent it, but whether its mandatory or not, the bigger problem is who ends up in charge of it and especially who ends up writing the initial laws for it.