The potential Orwellian horror of central bank digital currencies
There was an IMF video clip with BIS director Carstens commenting on CBDCs last year, https://meetings.imf.org/en/2020/Annual/Schedule/2020/10/19/...> With cash, we don't know who is using the 100 dollar bill today ... a key difference with CBDC is that the central bank will have absolute control on the rules and regulations that determine the expression of that central bank liability .. also we will have the technology to enforce that ... if an advanced economy issues a CBDC, and someone in a 3rd country wants to use it, it will require the consent of the central bank of the residence of that person, therefore the degree of control will be far bigger.Video on the IMF site is not working, here's a YT copy (thanks @toomuchtodo): https://www.youtube.com/watch?v=mVmKN4DSu3g&t=1451sIn a March 2021 speech, Carstens made a similar point, https://www.bis.org/speeches/sp210331.pdf> It is crucial to trace transactions, particularly large ones, to an individual or entity. For account-based CBDCs, issuing central banks would retain control over cross-border usage. Restricting non-residents’ access reduces the risk of volatile flows, and of currency substitution in recipient economies.Well-intentioned initiatives like Linux Foundation https://www.goodhealthpass.org/ or EU digital health certificate or Apple iOS 15 digital driver's license (https://www.androidpolice.com/2021/06/07/apples-ios-15-walle...) can all be drafted into the service of CBDC initiatives which require digital identity for digital currency wallets.