Central Bank Digital Currencies (#CBDCs) are coming to New Zealand 🇳🇿See here: https://www.rbnz.govt.nz/money-and-cash/future-of-money/payments – It’ll be a powerful tool for the state and if not designed carefully could result in the infringement of individual privacy, freedom and liberty.
To ensure privacy, freedom and liberty are preserved in the design Central Bank Digital Currencies (CBDCs), certain features should be avoided:
- Real-time Transaction Tracking: CBDCs should not enable continuous real-time tracking of individuals’ transactions to avoid compromising privacy.
- Centralized Control: CBDCs should not grant excessive centralized control to a single authority, as this could lead to potential abuses of power and restrictions on individual autonomy.
- Mandatory Identity Disclosure: CBDCs should not require mandatory disclosure of personal identities for every transaction, preserving the option for anonymous transactions.
- Transaction History Retention: Avoid retaining long-term transaction history data that could be used to profile individuals or compromise financial privacy.
- Automated Transaction Denials: CBDCs should not automatically deny transactions based on arbitrary criteria, ensuring individuals have the freedom to use their funds as they see fit.
- Excessive Surveillance: CBDCs should not facilitate mass surveillance or data collection that could be exploited to monitor individuals’ behavior without valid legal reasons.
- Limited Acceptance: CBDCs should not have limited acceptance to only certain platforms or services, allowing individuals to use them freely across a broad range of transactions.
- Exclusionary Access Requirements: Avoid implementing access requirements that could exclude individuals without access to digital technology or those who do not wish to use it.
- Vulnerability to Hacking: CBDCs should prioritize robust security measures to prevent unauthorized access and hacking attempts that could compromise individuals’ financial assets.
- Unilateral Monetary Policy Control: CBDCs should not give central banks unchecked authority to directly manipulate individual transactions in ways that might undermine financial stability or market dynamics.
By avoiding these features, CBDCs can be designed to prioritize individual freedoms and liberties while still reaping the benefits of digital currency innovation.