Free Market

$2,000 a Month: US Lawmakers Propose Basic Income for Americans to Cope With Covid-19 Economy

16/04/2020 by Idelto Editor

Democrats from the House of Representatives have introduced legislation that would pay eligible Americans $2,000 a month until U.S. unemployment numbers return to pre-covid-19 levels. Under the proposal, any American citizen 16-years or older making less than $130K per year would receive monthly funding from the federal government.

Also read: Minting Basic Income – US Lawmaker Asks Treasury to Issue Two $1 Trillion Coins With No Debt

The Emergency Money for the People Act

U.S. representatives have been pushing for a universal basic income (UBI) plan for quite some time now. Since the start of the coronavirus outbreak, politicians worldwide have promoted UBI as a solution to deal with the financial hardships. Just recently, news.Bitcoin.com reported on Spain’s plans to create a UBI program. A few weeks prior, Michigan Democrat Rashida Tlaib proposed that the U.S. Treasury could issue two $1 trillion platinum coins with no debt. If the Treasury adopted this concept, Tlaib’s plan noted that the Treasury could then send $1-2K to every American on a monthly basis until the covid-19 hardship ends. Following Tlaib’s proposal, bipartisan members of Congress passed the largest stimulus relief bill in American history. U.S. President, Donald Trump then signed the Coronavirus Aid, Relief & Economic Security (CARES) Act into law, which gives American residents a one-time payment of $1,200 per taxpayer.

After the CARES Act was signed into law, Democrats from the House of Representatives say that the funding is not enough to help the American people. This week U.S. taxpayers who use the IRS direct deposit system started getting their one-time payments from the Treasury Department. Democratic Representatives Tim Ryan (Ohio) and Ro Khanna (Calif.) have proposed a bill called the “Emergency Money for the People Act” that aims to provide citizens with $2,000 payments per month. The checks would be sent to Americans who are 16-years or older making $130,000 or less per year. The payments could last for six months or up until U.S. unemployment statistics go under pre-covid-19 levels.

“As millions of Americans file for unemployment week over week, we have to work quickly to patch the dam — and that means putting cash in the hands of hard-working families,” House Democrat Tim Ryan explained to the press.

While Stimulus Checks Are Deposited, Thousands of Americans Can’t Access Their Online Bank Accounts for More Than 24 Hours

Meanwhile, U.S. citizens have been complaining about the stimulus payment system this week. For instance, some people were upset that the government made it so debt collectors can take the one-time payment, if the resident owed money to lenders. U.S. officials gave banking institutions the green light to repatriate stimulus funds to pay off an individual’s debt. Additionally, thousands of Americans have been complaining about being able to access their online banking account. Some have complained that they cannot access their bank accounts online for over 24-hours. The host of the Youtube channel Timcast, Tim Pool mentioned the issues yesterday on Twitter. “Is anyone else not able to log into their bank accounts?” Pool asked his 446,000 Twitter followers. “So far three banks I’ve checked on are unable to log in,” Pool added.

People who responded to Pool’s question were also experiencing the same banking issues. “Looks like everyone’s checking their accounts for Trump-Bux,” one person responded. A few individuals said they were unable to log into their banking account for 1-2 days so far. Not only are American residents on lockdown and cannot visit a bank branch in person, U.S. citizens also can’t even access their bank online at times.

“All day I’ve had problems [trying to log into my bank account]. When I finally got in, I was not sufficiently stimulated,” another individual tweeted.

Americans Don’t Want Stimulus or UBI — They Want Their Jobs Back

The American economy is in shambles and citizens are starting to get restless with the lockdowns. There have been protests in states like Michigan, North Carolina, Ohio, New Hampshire, Kentucky, and Virginia as people are extremely upset about the shutdown economy. People on social media and forums have been complaining about the situation relentlessly. On freedom advocate wrote:

We don’t want stimulus or universal income, we want our jobs back.

For years now free market advocates and cryptocurrency proponents have known the monetary system designed by the oligarchy is immoral. The financial incumbents and politicians today are blatantly ruining the economy by shutting down businesses nationwide. U.S. lawmakers have halted specific parts of the supply chain and are causing inflation by printing massive amounts of money from thin air. Right now, more than ever before, cryptocurrency advocates and those who want more freedom are advocating the use of non-nation state issues currencies like bitcoin, precious metals, and barter and trade techniques. At the same time, the American bureaucracy’s propaganda is filled with sensationalism, socialist ideas like UBI, and the ultimate devastation of the American economy.

What do you think about the new UBI plan proposed by House Democrats? Let us know in the comments below.

The post $2,000 a Month: US Lawmakers Propose Basic Income for Americans to Cope With Covid-19 Economy appeared first on Bitcoin News.

Hundreds of Darknet Listings Are Selling Masks and PPE Products for Bitcoin

09/04/2020 by Idelto Editor

According to a recent research report written by the blockchain surveillance firm Elliptic, there’s been a massive influx of darknet market (DNM) vendors selling personal protective equipment (PPE) like masks and coronavirus test kits. The spike in medical equipment sales on the invisible web during the month of March, follows Ebay and Amazon’s decision to remove all third-party PPE suppliers who sell masks and disinfection products on the websites.

Also read: Merchant Services, Gambling, and Darknets: Coronavirus Economy Stunts Cryptocurrency Spending

Report Shows Hundreds of Personal Protective Equipment Listings Can be Found on the Darknet

Medical equipment and PPE resources are being sold in great numbers on darknet markets (DNM) for bitcoin and other digital assets. The blockchain forensics firm Elliptic recently published a report called “How Darknet Markets Are Exploiting the Coronavirus Pandemic,” which describes the situation in detail. Since the coronavirus outbreak started gaining traction on a global scale, PPE and certain types of medical equipment like masks and ventilators have been hard to come by. Elliptic’s report notes that DNM vendors have found opportunities by supplying PPE goods to buyers willing to travel the invisible web. Elliptic underlines that the PPE products being priced with extreme premiums, as the company explains that masks are a top item.

Elliptic’s report shows N95 masks for sale on various DNMs on the invisible web. Most vendors accept BTC, but other vendors accept digital assets like LTC and XMR as well. The DNMs Bitbazaar and Argartha accept bitcoin cash (BCH) payments for medical supplies as well.

“Hundreds of listings have recently appeared on darknet markets for N95 respirator masks,” Elliptic’s report details. “Usually priced at less than $1 each, these masks have been in very short supply and their sale for non-medical use has been restricted. The listings shown offer N95s in bulk at around $1.75 per mask – a surprisingly low mark-up on retail prices. Compare this to the prices charged by vendors on legitimate marketplaces such as Amazon or Ebay, where N95 masks have been listed for sale for upwards of $10 each.”

The blockchain forensics firm Elliptic has also found a marketplace dedicated to just selling masks on the deep web.

Moreover, besides the traditional darknet markets that have been around for quite some time, a market that claims to be a European mask wholesaler has a dedicated site just for masks. “Everybody needs a chance to get a mask for protection – Not only medical employees,” the website declares. Vendors on DNMs are also selling alleged covid-19 diagnostics for cryptocurrencies as well. Elliptic’s report stresses that DNM vendors know there is a global shortage for coronavirus testing kits and one vendor is selling “COVID-19 test strips” for $92 apiece. Even though Elliptic states that the diagnostics being sold on DNMs are overpriced, test kits on the white market are similarly priced.

Alleged coronavirus testing strips are available on DNMs.

So-Called ‘Coronavirus Cures,’ Openbazaar, and the Debate Over Price Gouging and Government Limitations

The blockchain forensics firm’s findings also show that there are some DNM operatives selling so-called “coronavirus cures.” “There has been anecdotal evidence that existing drugs such as chloroquine, a malaria treatment, could be an effective treatment for COVID-19. Public interest in this drug has been sparked by repeated comments from U.S. President Donald Trump about the drug’s potential, despite the absence of regulator approval for its use,” Elliptic notes. The authors further add:

We have started to see listings for chloroquine on darknet markets. The listing below refers to the claims made by Donald Trump, and offers a pack of 150 pills for $500.

The malaria drug called chloroquine is also being sold on DNMs and other types of so-called “covid-19 cures.”

The news follows the recent report from the blockchain surveillance company, Chainalysis, that explains DNM sales have seemingly declined. DNM vendors might be leveraging the need for PPE resources and masks to overcome the slight decline in narcotic sales. In addition to darknet markets, PPE supplies like N95 masks are being sold on Openbazaar and the Haven Privacy app as well. For instance, one seller on Haven is selling a lot of N95 masks for 0.0117 BTC ($85) at the time of publication. There has always been a debate on whether or not price gouging is ethical and when the act is mixed with government-induced limitations and shortages, prices can get worse.

Users who frequent the Openbazaar and Haven Privacy marketplace can find masks and other types of medical supplies as well. Openbazaar and Haven Privacy app patrons can pay with cryptos like BTC, BCH, LTC, and ZEC.

At the end of February, Ebay and Amazon both banned third-party vendors who were selling PPE products like masks and disinfectants. There’s no doubt that suppliers have to find other types of marketplaces to sell these much-needed goods. It’s up to the buyer to decide whether or not the product is overpriced and the vendor is being exploitive. Elliptic’s opinion that DNM vendors are exploiting the market during the covid-19 crisis is merely the company’s meaningless subjective valuation. Government critics say, however, that price gouging is merely supply and demand and to Austrian economists, it is a “life-saving market mechanism.”

Mises author TJ Roberts explains that “a sober mind must acknowledge the necessity of price flexibility.” Price gouging stems solely from governments hindering the free market. For instance, the global shortage of sanitizers is caused by the government because of FDA regulations and costly oversight. Not only does the government regulation add to the price of these goods, but it also stops anyone from making products like sanitizers. At the end of March, vodka distillers and whiskey suppliers decided they would make alcohol-based disinfectants, but the government had stopped a number of them due to regulations. If the bureaucracy did not exist, the free market would easily help supply the demand a great deal and price gougers would be forced to deal with fair-value market prices.

Unfortunately, Elliptic’s report fails to mention all the private sector businesses that have attempted to help the situation. Some companies have come forward to make products like masks, but were stopped by regulators like the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC). A few medical professionals that have tried to 3D print ventilator parts or create vaccines, have also been harassed over IP laws, regulations and government-backed patents.

What do you think about all the medical supplies and PPE goods being sold on DNMs? Let us know in the comments below.

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Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?

26/03/2020 by Idelto Editor

Hyperbitcoinization has been defined as “a state where bitcoin becomes the world’s dominant form of money.” But what actually needs to happen for bitcoin to ‘go viral’? As it turns out, a hyperbitcoinization event may be more likely than many suspect, especially in the current economic climate. However, there’s one big caveat: it requires human action.

Also read: Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset

Contagious Currency

The current covid-19 panic and pandemonium gripping the world has brought economic issues to the forefront of conversation, as economies across the globe are stunted by government orders to shutdown. Whether this is the best way to contain a contagion is hotly debated, but the paranoia about getting sick has stretched so far as to even touch the safety of paper cash.

Some nations, China and the U.S. among them, have been quarantining and disinfecting physical cash, for fear that it could spread the covid-19 virus. This potential transmission vector is viewed as an important threat, and many businesses across the globe are encouraging customers to use contactless payment systems in lieu of the dirty paper stuff.

There’s even been a buzz in the bitcoin space about this being an argument for crypto adoption. But for bitcoin to catch fire and really spread around the world in viral fashion, a number of factors must be present.

Conditions Necessary for Hyperbitcoinization

In order for “Bitcoin-induced currency demonetization” to take place, three main factors must be present so that a competing money “will rapidly lose value as bitcoin supplants it.”

Loss of Faith in Established Systems: Individuals across the globe are losing jobs and losing trust in their governments, their monetary systems, and in many cases, the broader global economic paradigm itself. Before covid-19 showed up, the world was already in the throes of widespread protest and unrest surrounding corrupt governance and economically unviable situations at a systemic level.

Now states have leveraged coronavirus to justify shutting down innumerable businesses and halting critical industry, many more are asking questions, and some are losing faith in the Modern Monetary Theory magic, which says that you can always “just print more money” when times are hard. The thing is, you can’t “just print more” goods and services. As currencies across the globe lose value, hyperinflation is also not an entirely impossible outcome, meaning dollars could potentially turn into valueless scraps of paper.

Viable Alternatives to Fiat: Bitcoin is permissionless, fast, borderless, low-fee, and decentralized. While the issue of which version of bitcoin would best serve as a global money is debated, the critical fact is that an alternative to government fiat does exist, has active use cases, and is at this point time-tested. It is also hard-capped in supply and looks promising as an inflation-resistant asset.

Further, with governments now in development and research for CDBCs (central bank digital currencies) even so-called “normies” are being primed for understanding how crypto and digital assets work. The corona zeitgeist is one that includes mainstream media buzz about a “digital dollar” and “digital yuan.” This presents a unique window of opportunity for a shift away from fiat currencies.

Open Markets: Of all the prerequisites for hyperbitcoinization, this is arguably the trickiest, and will be dealt with more in-depth at the close of this article. Suffice to say that without the ability for individuals to transact freely and voluntarily no currency — not even national currencies like the yen, dollar, or peso — can be successful.

‘Ideal Money’

Late Nobel Prize Laureate John Nash, an American mathematician known for — among numerous other accolades — being the namesake for game theory’s Nash equilibrium, developed a notion he referred to as Ideal Money.

Ideal Money would be, simply put, a money whose value is not foundationally subject to political special interests and conflicts of interest like the USD, and which is not inherently subject to inflation. Loosely comparing modern economic planners with Bolshevik communists, Nash once wrote:

So there may be an analogy to this as regards those called ‘the Keynesians’ in that while they have claimed to be operating for high and noble objectives of general welfare what is clearly true is that they have made it easier for governments to ‘print money’.

Nash’s words sound hauntingly on target today, as we witness nations like the U.S. create unprecedented amounts of fiat out of thin air, ignoring that eventually, someone must pay the piper.

Though Nash had his own ideas about what might best constitute this so-called ideal, the renowned mathematician did not rule out bitcoin.

In fact, he wrote in his paper Ideal Money: “My personal view is that a practical global money might most favorably evolve through the development first of a few regional currencies of truly good quality. And then the ‘integration’ or ‘coordination’ of those into a global currency would become just a technical problem.” Nash went on:

But the famous classical ‘Gresham’s Law’ also reveals the intrinsic difficulty. Thus ‘good money’ will not naturally supplant and replace ‘bad money’ by a simple Darwinian superiority of competitive species. Rather than that, it must be that the good things are established by the voluntary choice of human agencies.

Human Action: The Final Ingredient

It is interesting that Nash describes “a few regional currencies of truly good quality” coming together someday via technical integration. Could this be an unintended, prescient nod to bitcoin, blockchain, and the various integrations and ideas the crypto space has seen over the years like atomic swaps and network interoperability?

Only time will tell. What is certain, and what Nash notes explicitly in the passage, is that no matter how seemingly fit the conditions, no exodus from the broken world of fiat can happen without voluntary human action.

This is a tricky thing. Those that use bitcoin know its value and utility, but they are limited in some ways as to how they can leverage digital cash due to enforced regulations. Those that don’t know about crypto in a meaningful way remain the unable-to-act majority, presenting a two-faced challenge. Standing in the way of hyperbitcoinization, then, is the obstacle of “going viral” and that of forced censorship. The first obstacle shouldn’t be hard to overcome, on surface view. The second is more daunting.

According to marketing group Outgrow, novelty and “information gaps” play a major role in determining what type of content goes viral online. The group notes:

Researchers have found that a part of our brain actually feels rewarded by novel ideas rather than the familiar. When consumers feel they’ve been led to a new notion or concept, their brains flood their bodies with dopamine.

A lack of desperately sought info — or “information gap” — can also lead to virality, according to the group, when that info is found.

So in this context of the current mass unemployment, crashing stock markets, and an increasingly questionable world reserve currency, emotions, which are another major indicator for virality, are running extremely high. And lo and behold, there is a novel proposed solution which fills the info gap of the “what is good money” question.

Still, there’s something of a catch 22. If the masses aren’t using it, it’s not going to be very useful in a situation like this. If they don’t start, a dire situation like this is bound to perdure, and repeat. Whether in compliance with laws and regulations or otherwise, individual actors have proven bitcoin’s strength by trading regardless, and such use is required to show the world bitcoin’s utility.

From feeding the hungry in Venezuela and South Sudan during a global crisis with borderless BCH, to making money for survival by selling goods peer-to-peer with no middleman or political permission, bitcoin is virtually unconfiscatable. It allows a shift from the broken fiat paradigm if individuals so choose. This core utility is what could ultimately trigger hyperbitcoinization, and what a “digital dollar” can’t hold a candle to. Then there might be a real shot at a peaceful, sound, and sensible global economy.

Do you think hyperbitcoinization is possible? Let us know in the comments section below.

The post Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event? appeared first on Bitcoin News.

How Popular Is the Dark Web in India? A Look at Increasing Tech Use and Free Market Potential

07/03/2020 by Idelto Editor

Now that the Reserve Bank of India’s banking ban on cryptocurrencies has been lifted by a recent Supreme Court decision, there is reinvigorated interest in bitcoin within the South Asian nation. Exchanges can reconnect to banking institutions and offer the support they formerly did to their customers. But what about those who prefer to continue doing business their own way, and privately? This post takes a look at the state of the dark web in the world’s second most populous country, and where it may be heading.

Also read: Bitcoin Legal in India: Exchanges Resume INR Banking Service After Supreme Court Verdict Allows Cryptocurrency

India Ripe for Crypto Proliferation

With a population approaching 1.4 billion, second only to China, the world’s most populous democracy is also becoming a hotbed of tech and startup development. Research and consulting group McKinsey Digital notes that “India had 560 million internet subscribers in September 2018, second only to China … Indians download more apps—12.3 billion in 2018—than any country except China and spend more time on social media—an average of 17 hours a week—than social media users in China and the United States.” The report goes on:

The share of Indian adults with at least one digital financial account has more than doubled since 2011, to 80 percent, thanks in large part to the government’s mass financial-inclusion program, Jan-Dhan Yojana.

Interestingly, the nation appears to be leaping into the future of finance almost in lockstep with crypto’s timeline itself, but there’s been one big roadblock: the Indian government.

A 2018 Reserve Bank of India (RBI) ban on regulated financial services supporting businesses dealing in crypto stymied growth and frustrated many. Though crypto was never illegal in the nation, doing business above board and efficiently became extremely challenging for some of those leveraging digital assets to build the economy. With the ban now overturned — at least for the time being — reenergized focus has returned to the sector. But what about that region of the internet that doesn’t pay mind to the dictates of the state?

India and the Dark Web

Just last month India’s Narcotics Control Bureau announced the arrest of 21-year-old Dipu Singh, who Deputy Director General of the NCB Rajesh Nandan Srivastava said, is “a major player on the darknet. His listings were found in one of the biggest and reliable darknet markets like Empire Market and Majestic Garden.” The major dark web-related arrest was reported as a first for India. Singh’s crime allegedly involved dealing in psychotropic substances under the guise of selling remedies for erectile dysfunction, and shipments from the “mastermind” reached as far as the U.S. Srivastava is reported by CNN affiliate News18 as saying:

The payment gateways of cryptocurrency like Bitcoins and Litecoin were used by the operators to conceal the transactions from regulatory agencies.

Indeed, people in India are accessing technologies which can be used for dark web business more than ever. According to statistics garnered from 23,227 respondents as of February last year, India leads the world in percentage of population “who have used technologies that allow access to the dark web,” and the report elaborates: “This statistic presents the share of internet users who have used technologies, such as the anonymity network Tor, that allow access to the dark web as of February 2019, sorted by country. During the survey period, 26 percent of respondents from India stated that they had used such technologies.”

Darknet and P2P Crypto Utility for Evading State Violence

It is undeniable that dark web markets are used for unethical and even abhorrent and violent purposes. The recently reported darknet offer of over 460,000 stolen payment card records from Indian banks is testament to this reality.

However, the less-discussed fact is that state-approved markets and government institutions are used for nefarious purposes as well, and on a much more massive level numbers wise. One need only look at Purdue Pharma’s infamous Oxycontin drug racket unapologetically fueling the United States’ opioid epidemic, or high level Department of Defense ties to child pornography which remain basically unaddressed in the national conversation.

Though recent research suggests psychological conditions such as PTSD and clinical depression may be more safely treated with naturally occurring substances, such as those found in psilocybin mushrooms, many of these continue to be illegal but are available on the dark web. https://www.cell.com/cell-reports/fulltext/S2211-1247(18)30755-1

What is not often pointed to in mainstream press is the utility for parallel markets, P2P crypto trading, and the dark web to provide relief from government and financial regulators’ de facto violence against the poor, and everyday individuals seeking to do business peacefully and retain economic viability.

Where India is concerned, a plague of bank closures, withdrawal limits, and cash shortages has put many in financial peril. Leveraging cryptocurrency is one way to preserve value in such a climate, but even this takes some careful treading, as Indian banking customers have had to learn how to hide that their transactions are crypto-related to avoid financial censorship.

While the reversal of the RBI crypto ban may help to alleviate some pressure here, countries like Lebanon, where the state-mandated exchange rate now effectively takes 40% from customer withdrawals, and limits international transfers, show bitcoin has been a safe haven compared to government volatility, and that parallel markets can thrive regardless of legislation.

Without these open markets — even “illegal” ones — many individuals would find their labor, time, and medical needs unable to be met. It stands to wonder what the legal opioid epidemic and worldwide banking emergencies would look like under systems that were more decentralized and independently regulated, where someone could freely purchase safe, “illegal” medicine to ease their pain, or trade in currencies that actually have sound value propositions and underlying mechanics without fear of being caged for doing so. As the growing population of India becomes increasingly tech focused, time will tell how this massive nation decides to leverage peer-to-peer cryptocurrency and dark web capabilities.

What do you think about India’s dark web usage? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock, Elena Fedorowa, fair use.

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Next Step Mobile Surveillance: How You Walk, Your Heartbeat – Why Bitcoin Matters to Combat Government Privacy Invasion

26/02/2020 by Idelto Editor

It may sound like something from a dystopian cyberpunk movie, but payment providers could soon be validating transactions by the way users walk, their heartbeat, veins, and more. Mastercard has recently revealed they “have been testing heartbeat, vein technology, and the way people walk to authenticate people.” The high tech proposal, designed to fight hackers and increase convenience, could be a serious issue for people viewing such measures as unnecessary and invasive, where Bitcoin solves many of the challenges facing online finance already.

Also read: Wikileaks Gathers $37M in BTC Since 2010 – Over $400K Sent After Julian Assange’s Arrest

Mastercard to Map Your Walk

Mega payments provider Mastercard recently revealed to financial news outlet Marketwatch that “We are working with transport organizations where your face or gait will authenticate you.”

While facial recognition software is becoming more and more widely utilized in security, and the field of biometrics continues to evolve rapidly, most everyday people still haven’t considered that something like their gait, or style of walking, could be a means of identification. The tech will ostensibly be able to utilize CCTV, amongst other means, for allowing services such as boarding of public transport.

The president of cyber and intelligence solutions for Mastercard, Ajay Bhalla, told the news outlet:

The way you hold your phone, which ear you use, and how your fingers touch the buttons are all unique to you. We have been testing heartbeat, vein technology, and the way people walk to authenticate people.

For those that think they’ll be able to outsmart this type of tech if it falls into the wrong hands or is abused, they may want to think again. As coronavirus fear grips China and residents are required to wear masks for protection, Chinese AI startup Sensetime has already announced the rollout of new tech which can read 240 facial key points, allowing identification of individuals even if they’ve donned a mask.

Demonizing and Ignoring Bitcoin

The Mastercard exec also told Marketwatch that “The world is changing at a fast pace. Hackers are figuring out how to attack individuals to get their credentials.”

This narrative of payments becoming increasingly electronic and the need for greater online security is not new. In fact, the United States Federal Reserve announced last summer they are developing a new, fast and secure payments system called Fednow. Federal Reserve Board Governor Lael Brainard stated at the time, “Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community.”

MasterCard: your personal stalker

“The way you hold your phone, which ear you use, and how your fingers touch the buttons are all unique to you.We have been testing heartbeat, vein technology,and the way people walk to authenticate people”#PrivacyFirst https://t.co/ZrZzF7vIHh

— Olga Ukolova [LNP/BP] (@OlUkolova) February 14, 2020

The thing is, we’ve already got that. It’s called bitcoin. Not able to be hacked if stored non-custodially, and not subject to centralized censorship at a protocol level, Satoshi’s creation is one of the most secure payment networks there is. Further, transactions can be obfuscated for greater privacy.

The real issue at hand becomes apparent when a critical common thread between narratives from China, the Fed, and companies like Mastercard emerges: the promotion and cultural whitewashing of unmitigated, highly invasive surveillance.

Often, when solutions like bitcoin are presented as viable options to the authoritarian class, the response is the same: users of bitcoin are criminals, because who else would want to use money that isn’t centrally controlled? U.S. Treasury Secretary Steven Mnuchin has even gone as far as making the absurd claim that U.S. dollars are not used for criminal activity, stating:

I don’t think it’s been successfully done with cash. I’ll push back on that. We’re going to make sure that bitcoin doesn’t become the equivalent of Swiss-numbered bank accounts.

Anti-money laundering narratives have become the central focus for global financial regulators, and are putting more and more users of crypto out of business and out of wealth. All this when the latest report from state-connected blockchain forensics group Chainalysis shows that less than 1% of crypto usage centers on darknet market activity.

Contrasted with governments’ nasty track records of money laundering, drugs and human trafficking, debasement of currencies, and outright murder euphemized as ‘collateral damage’ in warfare — all financed mainly by the fiat shitcoin known as USD — bitcoin appears to be about as threatening as a toy poodle. It’s important to remember, though, that it does have teeth.

Regarding crypto’s threat to centralized systems like Fednow, former congressman from Texas, Ron Paul, remarked in August: “This will be bad for consumers and real-time entrepreneurs but good for power-hungry Federal Reserve bureaucrats who will no doubt use Fednow to help ‘protect’ the Federal Reserve’s fiat currency system from competition from crypto currencies.”

Why Bitcoin Matters to Fight Surveillance

Biometrics provides some great opportunities for security and convenience, affording free market actors cutting edge solutions for their businesses and everyday lives. When it comes down to brass tacks, however, less invasive payment solutions such as bitcoin are not favored by lawmakers, as they’ve stated explicitly that the decentralized and immutable nature of crypto threatens the very stability of the global economy itself.

According to a research opportunity posting from the U.S. Office of the Director of National Intelligence: “Many cryptocurrency enthusiasts predict that either a global cryptocurrency or a national digital currency could undermine the U.S. dollar … The U.S. should prepare for scenarios that threaten to undermine the U.S. dollar as the world reserve currency and determine how those scenarios could be overcome, protecting our status in the global economy.”

The real question about all the surveillance coming down the pike is an easy one. Namely, whether these measures will be voluntarily assented to, or whether they will be forced on people. For example, will someone still be able to open a bank account or board a train if they don’t want their vascular tissue analyzed? It’s an uncomfortable reality most don’t want to look at, but ultimately, when it comes to ensuring compliance the state has but one tool, and it ain’t reasoned verbal persuasion.

Bitcoin is very different from any Fednow service, digital Yuan, or Mastercard payment system because the user — and not some third party — controls it. That’s what really seems to get the goat of lawmakers. How far people will go to fight for this financial privacy bitcoin affords them remains to be seen, but let’s hope the shift is more of a philosophical one than is brutal.

What are your thoughts on Mastercard’s proposed verification systems? Let us know in the comments section below.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.

Images courtesy of Shutterstock, Reuters, fair use.

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