Why CBDCs will be ID-based(ft.com)
ft.com
Why CBDCs will be ID-based
https://www.ft.com/content/88f47c48-97fe-4df3-854e-0d404a3a5f9a
6 comments
But KYC generally is not required for cash transactions. Why can't we have anonymous digital transactions, as long as they are size-capped and rate-limited ? How is sending $300 through that kind of CBDC system different from me handing $300 cash to my friend ? Is it that the CBDC just wouldn't have the "friction" that cash does, so any limits are evaded easily ?
If they're anonymous, what's stopping a bad actor from creating tons of accounts to circumvent limitations?
Cash is impractical, and on and offboarding of serious sums raises questions ( you can't easily withdraw or deposit massive amounts of cash without the bank asking questions/flagging transactions, and even if you could, transporting it is cumbersome).
Cash is impractical, and on and offboarding of serious sums raises questions ( you can't easily withdraw or deposit massive amounts of cash without the bank asking questions/flagging transactions, and even if you could, transporting it is cumbersome).
Is there no good way to size-cap and rate-limit anonymous accounts ? Maybe not, if the bad guys slowly build up a large mesh of accounts and use bots that use lots of different IP addresses etc.
> Why can't we have anonymous digital transactions
It makes law enforcement work.
It makes law enforcement work.
But we have anonymous cash transactions, and somehow law enforcement still works.
I think a government monopoly with limitations ( enshrined in law protections, access for everyone, etc.) is drastically better than free for all private oligopolies ( like we have today with Visa/MasterCard).