Skip to main content

A single public blockchain infrastructure is the only way a CBDC will work. Because of trust


A single public blockchain infrastructure is the only way a CBDC will work because of trust. It's the only way government will be able to convince the people it is trustworthy. Its not a technical challenge which is is already solved anyway. It is a trust opportunity which needs to be boldly attended to.

Government say they need their CBDC to be transparent. So that they can trace and follow crime on their new cash system. I don't have a problem with that so long as every citizen's privacy is maintained. 

But this is not the total extent of what transparency needs to be, if, government wants to make a CBDC work.

For a CBDC to work fully, for both that nation and all its citizens, transparency needs to be in totality. What exactly do I mean by this?

Government, having been misled by fintech for more than 5 years now, and fintech having failed to deliver on certain promises in 2019 using crippled crypto protocols, no longer believe a CBDC can be done on chain. But do they know it all? For there is a blockchain (DLT) protocol that has always been able to deliver. And a conspiracy theorist would say fintech have deliberately hidden it from view. Not me, but its curious that fintech are clueless about this because its already working live at scale.

But its not about "my protocol is better than your protocol". It is about private blockchains which are what fintech has always proposed and have failed to deliver on for so long, which can never deliver the total transparency required to make a CBDC work for everyone. Because a private CBDC network means government cannot be held to account, only citizens, and by government! Its a one way deal which will not garner the trust required to make a CBDC adoptable by the people.

What is more a private chain means multiple books are now possible, hidden. Such that legalised money laundering can continue to proceed. I'm not saying the UK government would do that. I am saying this sort of injustice remains possible if done on a private chain. But it's far more than that - the people will not trust it so it will never be properly adopted. Or at least it will be a far cry from innovation crippled by that lack of trust.

Don't get me wrong, I am not anti government nor anti bank. I am just pointing it out with clarity. Because I want a CBDC to work. So what do I propose?

Take a deep breath please everyone, for this is going to be hard to bear - for a CBDC to work it must provide total transparency and to do that it must be run on a public blockchain in the clear for all.

There cannot be more than one blockchain infrastructure. But a CBDC could for example already run tokenised as a layer on top of the current Bitcoin network with total transparency, while retaining total privacy for its users too. Why have fintech not put this on the table yet I wonder?

Worried about a single public blockchain? Why! The Internet is the exact same thing, just the old guard.

A single public blockchain infrastructure is the only way a CBDC will work because of trust. It's the only way government will be able to convince the people it is trustworthy. Its not a technical challenge which is is already solved anyway. It is a trust opportunity which needs to be boldly attended to.

Labels:

Popular Posts

A Dialogue on the UK's Accession to the United States (UKEXIT)

A Dialogue on the UK's Accession to the United States Executive Summary This initiative seeks to foster a formal dialogue regarding the potential accession of the countries of the United Kingdom , to the United States , as individual states.  Being English the main focus is for the country of England to accede. The original intent was to ask the government to lead on it through a petition leading to the question coming before the House of Commons. This was crushed out of hand by the committee leading petitions, which was not a surprise.  Simply put, this petition is asking the government to start a conversation about the benefits of leaving the UK and joining the United States. Let us call the initiative UKEXIT (yukezit) The objective is to evaluate the benefits to citizens and stakeholders, encouraging a constructive discourse on the political, economic, and social implications of such a union. If Wales , Northern Ireland , Scotland , or  England were to leave the Unit...
Read more

The 450 Volt Truth: From Orwell to Obedience

A Complete Thread on Dystopia, Milgram, and Breaking the Agentic State - Why People Act Irrationally and Often Violently When a Tribal Social Structure and Its Hierarchy Are Brought Under Serious Scrutiny This is a tricky topic. Please read the Obedience Glossary of Terms before proceeding Executive Summary This piece was written from a long conversation with Grok. I had to interrogate the AI quite a bit. And was astonished at how it produced such intelligence. I've included the most pertinent parts. Do not be fooled into thinking this is just another Orwell analysis. That is just setting the scene well. For what comes later on the agentic state and how power uses it to control the masses.  It may not have all the answers. It might wrong. A lot of it is very hard to believe is happening. But it still seems to fit the bizarre world of system wide dissonance we all live and partake in today, better than all the alternatives. So deserves your continued attention. By all means make yo...
Read more

Government & Tax Death Toll

I'm going to show you how government and taxation causes more excess death than any other factor, even global wars and pandemics. It is and always has been the biggest genocide of all. And its deliberate. Government doesn’t just fail to save lives — it takes them, at scale.  2–6 million globally 200K–400K in the U.S. 50K–80K in the UK Every year. Every tax. Every regulation. Cumulatively since 1970 government and tax killed between 160 and 300 million people across the globe  More than all 20th century wars and genocides combined (260M) In the U.S. ten times more than all U.S. combat deaths in history (10 * 1.2M) In the UK equivalent to 1 in 15 of all deaths And the nations with more regulations and a higher tax to GDP ratio such as the UK and US, tend to kill more of their own citizens per capita. The poorest nations have a better record than the richest. All this excess death is rooted in the institutions of taxation - the theft of private property, by force, against your fr...
Read more