Authority and centralization – The novel of anticipation “ 1984 by George Orwell, presenting a ultra-authoritarian regimepales in comparison to the plans of the China. The central bank digital currencies (MNBC) already present worrying inherent risks of authoritarian excesses. But there, the People’s Bank of China (PBoC) wants to go even further in hypercentralization.
One MNBC to rule them all, and in darkness bind them
A ” China Digital Finance Forum was recently held in Beijing. Among the guest speakers was Fan Yifeia vice-governor of the People’s Bank of China. The subject of digital yuanWhere e-CNYtherefore quickly came to the table during his speech.
Unsurprisingly, the central banker is pushing with all his might for the digital version of the renminbi to have a total and exclusive monopoly payments on Chinese soil. He wants everything to be standardized and unified around the e-CNY. To better identify each individual transaction.
“(…) it is necessary to promote the unification of norms and standards in terms of digital identity (…) and to achieve interconnection between the e-CNY digital system and traditional electronic payment tools. (…)”
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China ready to step up a gear with its digital yuan
Current electronic payment systems, in particular by QR codeas well as the systems ofdigital authenticationare therefore requested to integrate into the digital yuan ecosystem, overseen by the PBoC.
Fan Yifei also points out the good progress of e-CNY, which continue to grow. Functional tests are multiplying in the field. The central banker also announces “major progress ” in terms of smart contacts (smart contracts).
“As a major innovation and update of the central bank’s foreign currency payment system, the digital yuan has undergone great adjustments in its technology and business models. An important aspect is programmability, which allows personalized payments using smart contacts. (…)”
In summary, and after hypersurveillancethe PBoC’s dream is the “one code access” (global access with a single code) for any payment interaction. And if your note of social credit is no longer good enough, it will become a “ban all access in one”. Any possibility of payment will be cut off with a single click from the People’s Bank of China. Even Orwell would be overwhelmed.
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