Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

How Do You Define National Security? An Important Question As China Continues Its CBDC Push

by Richard Gardner
March 17, 2022
in HodlX
HodlX Guest Post  Submit Your Post
 

Recent reports note that Wang Jingwu, vice president and chief risk officer of Industrial and Commercial Bank of China, authored a whitepaper which detailed for the China Financial Journal the necessary laws, in his view, required for the country’s CBDC.

He argues for a legal blueprint which has been described as needing to “clearly defin[e] and outlin[e] acquisition, use, risks, privacy, control and other details that clarify how it will operate nationwide…”

Functionally, there is no doubt that any central bank digital currency must have such defined regulations and characteristics. However, the devil is in the details. Just because there is a clearly defined privacy policy, does that mean that the policy will stand the test of time? Are there checks and balances to ensure that private financial data isn’t compromised by an authoritarian regime?

Jingwu said,

“At present, the digital renminbi is not regulated at the level of laws and regulations, and there is a lack of legal guarantees about the acquisition, use, risk prevention and control of digital renminbi. With the expansion of the circulation of digital renminbi, it is urgent to provide solid protection through legislation.”

While it is true that protection must be codified, protection is only valuable if it does, indeed, protect. The People’s Bank of China can track the digital yuan throughout the lifecycle into circulation – so, too, can operating agencies track the chain. We must be concerned that CBDCs do not turn over control of our financial system to governments, particularly those with a history of authoritarian rule.

Jingwu aims to “clarify the boundaries of the digital renminbi privacy protection” and ensure that personal data “can only be used for national security purposes.”

This is a privacy advocate admitting there must be a carve-out for national security purposes. As we’ve learned over the course of history, the phrase ‘national security’ has, at times, been used as a catch-all, giving the government tremendous power and trampling over individual privacy rights.

There are, indeed, many other issues that need to be worked out before a full-scale, public launch of a CBDC. What happens if a vendor encounters technical issues? How do you define its legal status? What parties are responsible for the distribution? These are only a few worthy considerations.

But paramount to all of those things, one simple question rises to the top – what guarantees does the citizenry have that its spending habits and transactions won’t be tracked? Cash represents economic freedom. It means that you can use your assets as you wish – in a private manner. We have laws that we need to abide by, of course. But cash represents freedom. Freedom to move and relocate. Freedom to choose vendors and suppliers. Freedom to live peacefully and in privacy.

A recent ATMIA whitepaper noted that,

“[I]n a survey conducted by the Boston Consulting Group (BCG), nine out of 10 people consider financial data and data regarding payment card use private. Fifty-percent consider information on their location, internet use, email, purchasing history and use of social networks to be essentially private.”

While some governments’ stated interest may be in tracking payments to limit the shadow economy, research by Friedrich Schneider has been summarized to note estimates that “eliminating cash would only shrink the shadow economy by two to three percent.”

CBDCs could be used to force a population into a privacy-less financial world. This is a world in which we don’t want to live, and the slope cannot be slipperier. It is for that reason that, while Jingwu’s commentary sounds positive, the actual execution is far more important than soundbites. We must take the greatest care to preserve our financial freedoms.


Richard Gardner is the CEO of Modulus. He has been a globally recognized subject matter expert for more than two decades, offering complex insight and analysis on cryptocurrency, cybersecurity, financial technology, surveillance technology, blockchain technologies and general management best practices.

 
Check Latest Headlines on HodlX


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Anastelfy/Natalia Siiatovskaia

Submit a Press Release

Industry Announcements

  • Swappi’s New Launchpad Feature To Bring IDOs to Conflux
    May 20, 2022
  • First Global Web 3.0 Eco Innovation Summit Comes to Singapore
    May 20, 2022
  • Wombat Soars to $40 Million in Total Value Locked While Still at Beta
    May 20, 2022
  • Babel Finance Used Collateralized eNote on FQX’s Solana DApp via Fireblocks
    May 19, 2022
  • Top Solana Play-to-Earn Contender DeFi Land Launches Its First Play-and-Earn Game
    May 18, 2022
  • Sneakmart Announces a Collaboration With StockX on Its First Metakicks Drop
    May 18, 2022
  • Everyrealm and Storyverse Partner To Create Interactive Stories for NFT Communities
    May 18, 2022
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$30,036.00
$30,036.00
1.63%
Ethereum
$2,014.63
$2,014.63
1.39%
Cardano
$0.537701
$0.537701
0.69%
XRP
$0.417997
$0.417997
0.05%
Dogecoin
$0.086131
$0.086131
0.56%

Spotlight

  • Binance CEO Breaks Silence, Says Terra (LUNA) Should Have Handled the Collapse Differently
    May 15, 2022
  • Luna Foundation Guard Reveals It Sold More Than $2,400,000,000 in Bitcoin (BTC) at Height of TerraUSD Collapse
    May 18, 2022
  • One Metric Indicates Bitcoin (BTC) Could Crash by Over 50% As Macro Environment Worsens, Says CryptoQuant CEO
    May 21, 2022
  • Bitcoin Gearing Up for a Big Move in the Next Three Months, Says Crypto Strategist – Here Are His Targets
    May 16, 2022

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2022 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX

© 2022 The Daily Hodl