We need to think ahead as to how Digital Identity, Central Bank Digital Currency and Programmable Money will interact, and ask the all-important question are we comfortable with these developments. Who is in control, and to what extent will we really be able to opt out?
01:05 Should A CBDC Be Programmable?
03:55 We Already Have Directed Spending
05:09 BasicsCard and Cashless Debit Card
08:22 Tracking Transactions and Directing Payments
09:00 Digital Euro
09:45 Digital US Dollar
10:45 The Bitcoin Proxy
11:10 China CBDC Pilot and Social Score
19:10 Current Digital Identity Consultation
21:58 Current Issues
22:45 27th October Deadline
23:00 Summary and Conclusions
As I reported earlier in the week a Senate inquiry has recommended that Treasury should lead a policy review of the viability of a retail central bank digital currency in Australia. This is something the Reserve Bank of Australia has been reluctant to entertain given it could increase the likelihood of a run on commercial bank deposits in a crisis. In fact, the RBA has been focussing on Commercial orientated CBDC pilots. But the Senate committee has asked Treasury to study the case for creating a retail ‘central bank digital currency’ to compete with private currencies being created by tech companies.
But what are we really getting into here? Well, back in June The Bank of England called on ministers to decide whether a central bank digital currency should be “programmable”, ultimately giving the issuer control over how it is spent by the recipient.
I suspect many will be totally unaware of Australian Digital Identity Programme and the current inquiry which is running. You have until 27th October to make a submission.
But my point is, say the Government gave you an account at the Reserve Bank, for digital currency, but to access it you needed a Digital ID, and the funds were programmable. Not only would spending be tracked, but certain types of transactions could be encouraged or restricted. Combined the Governments tentacles of control would be extended, and our liberties further eroded.
My worry is that we may be heading for an Aldous Huxley’s, Brave New World which will be controlled by the central planners. Even as we speak, the components are being strung together. So time to have your say.
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