The Cashless Revolution

• 目送飞鸿

  2023-05-07
  The eCNY will have what the PBOC calls “controllable anonymity.”…The PBOC considers paper cash too anonymous and electronic payments or bank cards as providing too much data to payment providers and big tech.…Part of the PBOC’s motivation is to provide a solution that preserves some of the privacy of cash—at least from merchants, tech companies, and banks—while retaining visibility and control. It will thus allow privacy from the government only for small transactions, allowing individuals to register digital wallets with their phone numbers alone.
• 目送飞鸿

  2023-05-07
  How could, for example, an independent credit-rating agency that had to pay for data and charge customers compete with a big-tech firm that already had all the data and made enough money elsewhere to charge tiny rates that gained it market share? Tech platforms performing credit scoring could distort the market and create a conflict of interest by providing artificially high scores to boost credit that would allow them to profit from both loan origination and the sale of products on their platforms, while banks bore the risks.