TL;DR
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The Brazilian government has been working on its own Central Bank Digital Currency (CBDC) – think: the Brazilian Real (their local currency), but on the blockchain.
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Pedro Magalhaes took the liberty of reviewing the Application Programming Interface (API) published by the Brazilian central bank, on Github.
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Pedro found that with the implementation of this CBDC, the Brazilian government would be able to freeze user funds and adjust their balances – at will.
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What’s freakier yet is…Pedro’s first thought was that the function was only there to freeze funds as a safety measure, when cash-to-crypto transactions were being made.
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But the official response from the central bank was that it can do it any time it wants.
Full Story
You know how crime syndicates will charge local store owners for ‘protection’?
…but what they’re paying for, in reality, is protection from that very same crime syndicate?
Blockchain technology’s ‘killer use case’ may end up operating in a similar way – where blockchain tech is used to protect against potentially malicious applications of blockchain.
Confused? Here’s what we’re on about:
The Brazilian government has been working on its own Central Bank Digital Currency (CBDC) – think: the Brazilian Real (their local currency), but on the blockchain.
Enter: Pedro Magalhaes.
Pedro is the founder of the Web3 consulting company Iora Labs, and he took the liberty of reviewing the Application Programming Interface (API) published by the Brazilian central bank, on Github.
And he found something…unnerving.
With the implementation of this CBDC, the Brazilian government would be able to freeze user funds and adjust their balances – at will.
Sure, that’s still doable within the current global banking system – it’s just a lot harder to do.
What’s freakier yet is…
Pedro’s first thought was that the function was only there to freeze funds as cash-to-crypto transactions were being made.
(So folks couldn’t double their money by cancelling mid transaction → getting their cash back → while also receiving the crypto).
But Pedro said the official response from the central bank was that it can do it any time it wants.
Y.I.K.E.S.
So here’s where our ‘crime syndicate theory’ comes into play…
Maybe the ‘killer use case’ of decentralized blockchains (which are tamper proof) isn’t going to be found in gaming, social, art, or collectibles…
But instead, will be best put to use as a ‘life raft’ – protecting folks from potentially malicious applications of blockchain tech, like CBDCs?
(Or maybe we need to take off our tinfoil hats and touch some grass?)
Who knows ¯\_(ツ)_/¯
