The creation of a central bank digital currency (MNBC) is one of the hopes of the World Economic Forum. The organization has even produced a “toolbox” to support central banks in their digital shift. Holding a public consultation is one of those tools. We therefore understand better why the Bank of Canada (BC) is currently inviting Canadians to give their opinion on a future digital dollar.
Programmable
To justify the creation of an MNBC, the BC invokes the concern to “protect our economy by ensuring access for Canadians to an official, secure and stable digital means of payment”. On the other hand, it remains silent as to the characteristics of this currency. In this case, it ignores the fact that in addition to offering the authorities full access to the financial information of each citizen, the MNBC is programmable by the Central Bank itself.
However, as pointed out by the European Data Protection Supervisor (EDPS), the programmability of MNBC creates a systemic risk of surveillance, profiling and control.
More precisely, an MNBC allows the State to program the rules of its choice. He can thus restrict, or even completely suspend, an individual’s access to his digital account. He can choose in which businesses, for which products, and for what purposes he is authorized to spend his money.
It can even attach an expiry date to the currency in order to force people to spend quickly and thus prevent savings.
And if you think the Controller’s concerns stem from conspiratorial delirium, think again!
China, which has been gradually rolling out its digital currency since 2019, has masterfully proven that fears of state takeover of bank accounts are real and legitimate.
Powers
The MNBC is much more than a banal technological transition. It is a new paradigm that would allow the State to capture immeasurable powers. The Central Bank wants our opinion? Let’s give it to him!