What is digital ID and why is it a bad idea?
Are CBDCs (Central Bank Digital Currencies) the end of privacy and the next step towards centralised control?
In short, digital ID is indeed a bad idea and CBDCs are indeed the end of privacy and the next step to towards centralised control, as Iain Davis – who, previously, gave a good breakdown of Sustainable Development – explained in the following conversation.
For clarity, fiat currency is the money we use every day, like the US dollar or Euro. It’s issued and regulated by the government and central banks. Fiat money is physical, meaning it exists as paper bills and coins. It is created out of thin air and has value because the government declares it as legal tender and, as such, users trust and accept it as a medium of exchange.
Digital currency is really just an electronic version of the aforementioned. Credit cards and Apple Pay are examples.
Currently being rolled out globally, CBDCs are a type of digital currency issued directly by central banks. They are programmable and linked to one’s digital ID (also being rolled out globally), and are a complete violation of individual privacy.
Take a listen to what Agustín Carstens, the head of the Bank Of International Settlements (BIS), said in an interview about CBDCs. (The BIS is sort of like the central bank of central banks.)
Meanwhile, cryptocurrency is a type of digital currency that operates on decentralised networks called blockchains. Unlike fiat currency and CBDC, cryptocurrencies are not issued or regulated by any government or central authority. They are based on cryptographic technology, meaning that, for example, Bitcoin is decentralised money.
Despite owning some crypto, I can’t decide where I stand on it.
Iain chatted to me about CBDCs, digital ID, privacy and more.