{"id":563340,"date":"2023-03-14T06:12:11","date_gmt":"2023-03-14T03:12:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cbdcs-should-protect-privacy-not-be-a-surveillance-tool-former-cftc-chair\/"},"modified":"2023-03-14T06:12:11","modified_gmt":"2023-03-14T03:12:11","slug":"cbdcs-should-protect-privacy-not-be-a-surveillance-tool-former-cftc-chair","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cbdcs-should-protect-privacy-not-be-a-surveillance-tool-former-cftc-chair\/","title":{"rendered":"# CBDCs should protect privacy, not be a surveillance tool: Former CFTC chair"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35a360577c2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35a360577c2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cbdcs-should-protect-privacy-not-be-a-surveillance-tool-former-cftc-chair\/#%E2%80%9D_CBDCs_should_protect_privacy_not_be_a_surveillance_tool_Former_CFTC_chair_%E2%80%9C\" >&#8221; CBDCs should protect privacy, not be a surveillance tool: Former CFTC chair &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_CBDCs_should_protect_privacy_not_be_a_surveillance_tool_Former_CFTC_chair_%E2%80%9C\"><\/span>&#8221; CBDCs should protect privacy, not be a surveillance tool: Former CFTC chair &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvM2RiNWU4YzMtYTBkMC00ZTRjLWJiNzctYjU3OTNjOTJkNWIyLkpQRw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>The United States should lead the development of Central Bank Digital Currencies (CBDCs) away from being \u201csurveillance coins\u201d and towards being &#8220;freedom coins,\u201d says the former chair of the Commodity Futures Trading Commission (CFTC).<\/p>\n<p>In a Mar. 13 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thehill.com\/opinion\/finance\/3897860-fight-chinas-surveillance-coin-with-a-us-freedom-coin\/\">op-ed<\/a> in The Hill, Christopher Giancarlo, nicknamed &#8220;Crypto Dad&#8221; for his pro-crypto outlook, said the U.S. &#8220;must influence&#8221; CBDC development towards protecting &#8220;democratic values like freedom of speech and the right to privacy, &#8221; leveraging current <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> used by some cryptocurrency protocols.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">My op-ed in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/thehill?ref_src=twsrc%5Etfw\">@theHIll<\/a> with <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jim?ref_src=twsrc%5Etfw\">@Jim<\/a> Harper: the question is not whether <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CBDCs?src=hash&amp;ref_src=twsrc%5Etfw\">#CBDCs<\/a> can be stopped (they can\u2019t), but whether sovereign AND non-sovereign <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/digitalcurrency?src=hash&amp;ref_src=twsrc%5Etfw\">#digitalcurrency<\/a> will enslave or liberate citizens of free societies. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/h1oT14NalK\">https:\/\/t.co\/h1oT14NalK<\/a><\/p>\n<p>\u2014 Chris Giancarlo (@giancarloMKTS) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/giancarloMKTS\/status\/1635368269208240128?ref_src=twsrc%5Etfw\">March 13, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Giancarlo, the co-founder of the Digital Dollar Project that focuses on researching the implications of a U.S. CBDC, elaborated on the privacy considerations in a Mar. 1 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.aei.org\/wp-content\/uploads\/2023\/02\/The-Values-of-Money-Will-Tyranny-or-Freedom-Be-in-Your-Digital-Wallet.pdf?x91208\">report<\/a> he co-authored for the policy think tank, the American Enterprise Institute (API) with API fellow Jim Harper.\u00a0<\/p>\n<p>He said the U.S. must advocate for a &#8220;freedom coin&#8221; \u2014 a CBDC that guarantees a high level of privacy. <\/p>\n<p>Giancarlo and Harper argued in the paper that CBDCs offer an opportunity \u201cto reassess contemporary financial surveillance activities\u201d and could possibly enhance constitutional protections.<\/p>\n<p>To achieve this, a CBDC could take advantage of crypto technology, such as \u201czero-knowledge proofs, homomorphic encryption, and multiparty computation, that enable parties to prove an encrypted proposition is true without revealing the underlying information,&#8221; they said.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">My report today w\/<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/AEI?ref_src=twsrc%5Etfw\">@AEI<\/a>\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jimharper?ref_src=twsrc%5Etfw\">@JimHarper<\/a>: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CBDC?src=hash&amp;ref_src=twsrc%5Etfw\">#CBDC<\/a> &amp; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/stablecoins?src=hash&amp;ref_src=twsrc%5Etfw\">#stablecoins<\/a> must preserve privacy &amp; security, economic liberty, free speech &amp; personal autonomy.  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/pB8uaA3KIT\">https:\/\/t.co\/pB8uaA3KIT<\/a><\/p>\n<p>\u2014 Chris Giancarlo (@giancarloMKTS) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/giancarloMKTS\/status\/1630647464645500932?ref_src=twsrc%5Etfw\">February 28, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>These technologies would make \u201cintelligent enforcement\u201d of crime prevention possible, the authors argued.<\/p>\n<p>First, the U.S. would have to reexamine current financial surveillance policies. The authors took issue specifically with one recent document published by the administration of U.S. President Joe Biden:<\/p>\n<blockquote><p>\u201cThe White House Office of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">Science<\/a> and Technology Policy\u2019s (OSTP) recent Technical Evaluation for a U.S. Central Bank Digital Currency System shows that financial surveillance in the West is more like China\u2019s than many would like to admit.\u201d <\/p><\/blockquote>\n<p>The OSTP paper <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2022\/09\/09-2022-Technical-Evaluation-US-CBDC-System.pdf\">showed<\/a> an \u201cunwillingness to evolve beyond today\u2019s constitutionally suspect financial surveillance system,\u201d they said.<\/p>\n<p>Giancarlo and Harper pointed to the Anti-Money Laundering (AML) and Know Your Customer (KYC) measures as problematic, saying they allowed too much surveillance without probable cause. <\/p>\n<p><strong><em>Related: CBDCs threaten our future, so it\u2019s time to take a stand<\/em><\/strong><\/p>\n<p>If a CBDC&#8217;s privacy is not guaranteed, there is a risk of it being used as it is in China, they argued.<\/p>\n<p>There, the e-yuan \u201cwill allow the Chinese government to link political conformity to individual prosperity and relegate political dissenters to poverty\u201d by making all transactions visible to the People\u2019s Bank of China, they opined.<\/p>\n<p>The authors\u2019 thoughts have much in common with concerns expressed by U.S. Senator Tom Emmer, a vocal opponent of a U.S. CBDC who introduced the CBDC Anti-Surveillance Act in 2022.<\/p>\n<p>Emmer has expressed concern over a CBDC that \u201ctracks transaction level data down to the individual user\u201d and can be programmed \u201cto choke out politically unpopular activity.\u201d Emmer is also co-chair of the U.S. Congressional Blockchain Caucus.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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In a Mar. 13 op-ed in The&#8230;<\/p>\n","protected":false},"author":1,"featured_media":563341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/3db5e8c3-a0d0-4e4c-bb77-b5793c92d5b2.JPG","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75046,75049,75057,4973,70934],"class_list":["post-563340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cbdc","tag-peoples-bank-of-china","tag-yuan","tag-china","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=563340"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563340\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/563341"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=563340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=563340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=563340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}