More Terrifying CBDC News (Hoooray!)

TL;DR

• The Brazilian authorities has been working by itself Central Financial institution Digital Foreign money (CBDC) – suppose: the Brazilian Actual (their native foreign money), however on the blockchain.

• Pedro Magalhaes took the freedom of reviewing the Utility Programming Interface (API) printed by the Brazilian central financial institution, on Github.

• Pedro discovered that with the implementation of this CBDC, the Brazilian authorities would be capable to freeze person funds and modify their balances – at will.

• What’s freakier but is…Pedro’s first thought was that the operate was solely there to freeze funds as a security measure, when cash-to-crypto transactions had been being made.

• However the official response from the central financial institution was that it might probably do it any time it desires.

Full Story

You know the way crime syndicates will cost native retailer homeowners for ‘safety’?

…however what they’re paying for, in actuality, is safety from that exact same crime syndicate?

Blockchain know-how’s ‘killer use case’ could find yourself working in an analogous method – the place blockchain tech is used to guard in opposition to probably malicious functions of blockchain.

Confused? Here is what we’re on about:

The Brazilian authorities has been working by itself Central Financial institution Digital Foreign money (CBDC) – suppose: the Brazilian Actual (their native foreign money), however on the blockchain.

Enter: Pedro Magalhaes.

Pedro is the founding father of the Web3 consulting firm Iora Labs, and he took the freedom of reviewing the Utility Programming Interface (API) printed by the Brazilian central financial institution, on Github.

And he discovered one thing…unnerving.

With the implementation of this CBDC, the Brazilian authorities would be capable to freeze person funds and modify their balances – at will.

Positive, that is nonetheless doable throughout the present world banking system – it is simply lots tougher to do.

What’s freakier but is…

Pedro’s first thought was that the operate was solely there to freeze funds as cash-to-crypto transactions had been being made.

(So of us could not double their cash by cancelling mid transaction → getting their money again → whereas additionally receiving the crypto).

However Pedro stated the official response from the central financial institution was that it might probably do it any time it desires.

Y.I.Ok.E.S.

So this is the place our ‘crime syndicate principle’ comes into play…

Perhaps the ‘killer use case’ of decentralized blockchains (that are tamper proof) is not going to be present in gaming, social, artwork, or collectibles…

However as a substitute, shall be greatest put to make use of as a ‘life raft’ – defending of us from probably malicious functions of blockchain tech, like CBDCs?

(Or possibly we have to take off our tinfoil hats and contact some grass?)

Who is aware of ¯_(ツ)_/¯