Central bank digital currencies (MNBC) that would only be accessible if one proves that one is a good citizen? This is the possibility mentioned by the International Monetary Fund (IMF), which considers that a social credit system like the one used in China could be particularly useful. We return to this dystopian perspective.
MNBCs used to monitor their holders?
The intervention took place in an IMF meeting called ” MNBCs for Financial Inclusion: Risks and Rewards ». It involved several guests, including Queen Maxima of the Netherlands, the governor of the Central Bank of Indonesia or the deputy director of the IMF, Bo Li.
It was the latter who explained his vision of MNBC. He praised their programmable aspectexplaining that it helps control how people use their money:
“With MNBCs, you can precisely control what people can and cannot hold. But we can also program the uses of the money, for example restricting it to food purchases. »
This idea may already raise some eyebrows. But programmability could be used even further, in particular by monitoring the purchasing habits of consumers.
👉 Going Deeper – Digital Central Bank Currencies (MNBC) – What are they and how do they work?
The No. 1 exchange in the world – Regulated in France
10% off your fees with code SVULQ98B 🔥
China as a model
Bo Li gave a particularly telling example: that of social credit used in Chinain particular for subscriptions to credit offers:
” I am going to give you an example. In China, this transaction data may be used by service providers for credit subscriptions. »
That is, credit providers could observe consumer habits. For example, according to Bo Li: “ How much coffee do I drink every day, where do I buy it, do I use Uber every day, what hours of the day do I work”.
All this data would be monitored to determine if the person “deserves” a credit. A rather chilling prospect, which was however praised by the other guests present at this meeting.
👉 Find our guide to anonymous cryptocurrencies
Join Experts and a Premium Community
PRO
Invest in your crypto knowledge for the next bullrun
Our privacy for a credit
According to the BRI’s director of innovations, the idea could be taken up by different countries:
“This is a great example of how different countries will take different directions to serve their societies in their digital spaces. […] It can be good to give a little of your privacy in exchange for his safety. »
This is a big risk of MNBCs. These programmable digital currencies controlled by central banks can be used to prevent citizens from using their money as they see fite. Jerome Powell and Christine Lagarde have also recently confirmed that the “e-euro” and “e-dollar” projects would not offer anonymity.
We can therefore only be wary of digital currency projects that could potentially restrain their holders, and be invasive for their private lives.
👉 On the same subject – Asia: soon a common MNBC to compete with the dollar?
Source: IMF via YouTube
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
2163 items
