Topic: Will the Government use the Blockchain as a tool for control? (Read 345 times)

The true reason for which the bitcoin is being innovated is getting used in some countries. The same have made the functioning more effective against the traditional system. As the middle man gets removed a big revenue is saved out of it. This middleman profit gets into the treasure of the government.

Blockchain technology helps with the transparency, but the same isn't liked by the government. Being transparent keeps them good with the administration, but the government won't be able to bribe. For this reason it is less likely to see blockchain usage by the governments.

Blockchain is much larger than just a cryptocurrency so definitely Bitcoin can be ignored if someone or some company or nation wanted to take advantage of the immutability of the blockchain.  Besides the government or a company will always aim for full control of anything that they wanted to creater or build, so I guess the kind of blockchain to use here is a centralized one.


The government wanted to have a share of the pie no mattet what industry it is.  That is why they always implement regulation on everything to keep track of whatever financial gain they can have may it be cryptocurrency or other kind of ventures.



Movies is just a movie writer's imagination.  So we shouldn't take the scenes as a facts.  They are often fiction though it might have some influence from what is happening in the present time.  But still a movies shouldn't be taken seriously unless it is a documentary production.

Different governments are actually making use of the blockchain technology in various departments. Though they do not support the freedom of financial management via blockchain (I.e. bitcoin) then also they are using it for their data integrity issues. Just now read that Spanish telecom company is accepting bitcoin payments which is indirect use of blockchain related services. Though not real soon but in the future treaty might get formed to control the blockchain space and work on technological advances which may help for humanities further tech leaps.

Given that a blockchain decentralizes money and sets it apart the state, it's kinda contradictory with it being a government tool as well. Sure, chain analysis does some work (even though it's mostly fundamentally flawed), but it does the supposed work it thrives to in the first place. But there isn't anything beyond that.

Blockchain, and to be precise, Bitcoin's blockchain will rather be an escape from governmental tools.

That has been the case for the "black market crypto usage" topic as well and everyone will do it as they see fit. Normally, they do not realize that dollar has been used for cocaine purchases as well, it is common, it is said that every single 20 dollar bill in the world has a bit of cocaine trace on it, well not the newly printed ones I am sure, but the ones from the 80's for sure.

That’s why we should not be seeing crypto and immorality as a connected thing, it's immorality and humans, no matter what they do, what they use, what money, what product, what item, doesn't matter, some people will do the immoral thing over the moral one and there is no stopping them.

So they're just shoehorning a technology into a problem. That's not how you make a solution.

Blockchain has certain properties which makes it excel in applications that require immutability such as auditing. It is not good for much else.

*A caveat, you only get the immutability if the nodes are spread apart in different geographic regions and are operated by different organizations, so that there is no overlord of it all to compromise it.

Well, that's why CBDCs can spell disaster for Bitcoin. Once governments start implementing their CBDCs they will surely limit the access to Bitcoin by using the government's digital coin. Many governments want to restrict the use of Bitcoin and that is the order of the day in many countries. Bitcoin threatns their control and they will regulate at their own pleasure to restrict access to cryptos.

Well it depends on the country and their government, each of them are very different based on their own geography and economy.
For example when Venezuelan created their own CBDC called Petro it was meant to basically raise funds and make some money for the government that was running low on budget. It failed because of that.
When Chinese created their own CBDC it was meant to be used for fact payments and to compete with bitcoin adoption. It only gained success after they started limiting people's usage of bitcoin.
There are other cases but they are not released yet but the one we are working on is meant to be used for import/exports based on my speculation (which can be wrong) but we have to wait for them to be released.

transparency is indeed one of the good thing about the implementation of CBDCs. unlike fiat money, which the government can't track of, CBDCs can now easily be traced via blockchain. however, i don't think the government will employ this 100%. so its constituents has still the option of using their fiat and other payment methods. those who will use CBDCs should know the risks of using it.

only a few governments use this technology and publish it if they use this technology ,
as we know that many governments are against this system, aren't they, but they secretly use this system to track the activities of their citizens in all ways without us know it, especially in the tax system

This is an interesting question. I believe their goal is to be able to track your carbon footprint and tax you if it's too high.
It's all about the money that they can make from this.

We have to ask ourselves what it is that they have to gain from switching to CBDCs.
No more money spend on printing and storing cash.
Full tracking
No more ways to avoid taxes
Great way to gather information about people's spending habits

That is also what I am thinking.  I believe that government will use blockchain to spy on peoples financial transaction.  Well, on a positive note this will enable the government to track down illegal transactions and be able to know people accounts that is behind  money laundering and people who finance rebels and terrorist.  On the negative side, normal people will be exposed to government exploits especially if the person become the target of interest of the government.

That may be the case but in a democracy, the people can make a case for blockchain to be implemented in the electoral process. A democratic government cannot refuse such demands for a more transparent and fair elections. I have little faith in governments and their systems, government are all about control we have so very little control of our lives, we have been systematically programmed to function in a certain way to achieve a particular result. Bitcoin and blockchain technology is the only thing standing between them and total dominance.

If I'm going to roughly guess — they'll take advantage of public blockchains to pursue people(not necessarily criminals only) who are careless concerning privacy(straightly depositing and withdrawing through KYC exchanges). With Chainalysis and such + carelessness, Bitcoin's privacy can suck really bad.

Ok, so you went straight to the point. Governments do not want to have anything with it as it is a decentralized technology and they like to stay in control. As you say, they won't even want to use blockchain for their CBDCs... so in that sense, what would they use this technology for?

Control of what?
Also, if they cannot put under their power cryptocurrencies since it is naturally decentralized, then how come?Governments are also interested in this technology because they are wanting to tax every transaction given that the impression of being profitable, is known on their end.You might be referring to third party wallets or applications. But on that sense, it is not completely under their control. If they are using blockchain as a control tool, why can't they directly regulate it? 'coz that would be impossible, atleast at the present, to happen.

I'd more view it as their way to adapt with this technology rather than aiming to put this technology under their power. It's been years or a decade for this technology but still, only few countries allowed it to be used as a mode of payment.

If we’re talking about CBDCs, that’s where the government have the control. Even if it means that they are going to outright ban Bitcoin, they can’t. If you look at China right now as they are anti-crypto and still doing the crackdown, there are still some Chinese crypto enthusiasts who are still using Bitcoin and always find ways and loopholes to trade, buy and sell with their own Chinese Yuan, etc.

Blockchain would be used in any financial system, whether government or private. But they will make things centralized. Bitcoin is illegal in my country, but a few financial institutions use it, though not directly through the government. Of course, they are a centralized organization that controls their financial system. So, yes, they are using Blockchain as a control tool.

First of all, Bitcoin, like any National currency can be used immorally by people... that doesn't make the cryotocurrency bad. It's people abusing/misusing it, like they would abuse/misuse any good thing for evil. And it's important to note that Bitcoin underlining technology makes exposing bad users easy compared to fiats/national currencies which are quite opaque and are heavily used by drug lords and for other immoral purposes. You could call them dark currencies without being wrong due to their lack of Transparency which is part of the fundamental feature of True Blockchain.

In regards to whether governments will use Blockchain as tool for control... that really depends on whether they weaken or completely discard the features that makes Blockchain harder to use a tool for control. By the way, it can nolonger be a True Blockchain if the features are weaken or discarded... it will become a false Blockchain. So, you will have to make sure bad people in governments do not tamper with Blockchains Features/Ideals/Standards like its Transparency, Decentralization, Fair rule-based protocol, Participatory governance/consensus, Censorship-resistance, Immutability, Permissionlessness/Trustlessness, , Immutability, Pow, etc.

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 Bitcoin or The Bitcoin System is analogous to a decentralized and interconnected Android Operating system, while alternative Blockchains are like modified Android operating system. All of them most likely won't be in existence if Bitcoin wasn't invented. They owe Bitcoin a lot of respect and should be built to be better/safer Blockchains rather than lowering their standards.

Bitcoin was never any of that!
At some point around 2013 the illegal usage began to grow because some newbies were lied to about bitcoin's anonymity but even then bitcoin was not a currency that is used for illegal activities.

It is not hypothetical when a handful of CBDCs are created and in use and more are in testing phase ready to be deployed.

Has it really? I don't think so. Some government have jumped on the hype wagon but not to help them with "financial policies".
 
But the governments are already in full control of the monetary policy. What do you think CBDCs are going to change?

I don't think governments have any use for blockchain technology because this technology only works best in decentralized mode but the governments want to centralize that which means it makes no sense in their hands.
This is also why CBDCs aren't considered "cryptocurrencies" and some of them don't even use the technology. After all D stands for digital...