CBDC vs Cryptocurrency: the War of Privacy

By xuanling11 | Crypto Learning | 24 Jul 2021

The privacy issue has been around for a while and there has not yet been a single solution to resolve this issue. On one hand, large technology companies have controlled so much data that the government has been lacking in policy to be able to regulate them. On the other hand, privacy technology has lacked the ability to develop breakthrough technologies to protect individual privacy.

Global central banks are eager than ever to issue their own Central Bank Digital Currency (CBDC) that is the last resort to protect their dominance in society and the old cramble financial system. Cryptocurrency has shown some strength on how it can protect privacy yet not completely shield individuals from illegal activities and scams. 

It is not which side you pick but each side you want to participate in to make your own futures.


Centralized vs. Decentralized

Centralized doesn't just mean one entity to issue types of money but one entity to control the information channel. When money is digitalized, you send money through a single channel to directly reach the user. The danger is the end user has to directly explore himself or herself to such a powerful entity. Such entities can directly abuse their power to such individuals.

Decentralized has a certain limit to shield direct contact with the end user. However, decentralized technology may be abused by bad actors who take advantage to harm society or corporations who adopt decentralized technology but continue gathering users’ information.


Privacy matters

As a human being, privacy is a fundamental right that you seek to protect yourself and society against arbitrary and unjust use of power.


Current technology trend is dangerous path

From social media to search engines to online shopping, all technology has breached privacy rights and collects data as much as they can.

It just matters of time that either corporations or countries reach the point that they constantly surveillance individuals to analyze and generate policies to regulate certain behaviors.


Where are we heading now?

Banks go to CBDC and corporations get into Cryptocurrency, all they want are user data that they can control over.

Can we trust the government or corporations to protect our privacy?

We are heading ever in the direction of massive control that makes society norms to affect people to become more obedient and compliance.


Check out this Ted Talk about Privacy Matter and we are living like it now and ever.

Related articles:
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CBDC: Stablecoin 2.0 or Stablecoin Killer
Chinese CBDC: the Ultimate Financial Weapon or Just another Copycat
DeFi Swap: Great Returns come with Great Cost
Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational purposes.

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