{"id":20203,"date":"2024-05-11T07:29:20","date_gmt":"2024-05-11T07:29:20","guid":{"rendered":"https:\/\/coinengineer.io\/?p=20203"},"modified":"2024-05-11T07:29:20","modified_gmt":"2024-05-11T07:29:20","slug":"transparency-not-enough-why-open-source-alone-cant-fix-cbdc-problems","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/transparency-not-enough-why-open-source-alone-cant-fix-cbdc-problems\/","title":{"rendered":"Transparency Not Enough: Why Open Source Alone Can&#8217;t Fix CBDC Problems"},"content":{"rendered":"<p><strong>Central Bank Digital Currencies (CBDCs)<\/strong> are emerging as the future of money for governments across the world. However, recent incidents with Brazil and Norway are sending warning signals from these crypto currencies.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/transparency-not-enough-why-open-source-alone-cant-fix-cbdc-problems\/#The_Illusion_of_Transparency\" title=\"The Illusion of Transparency\">The Illusion of Transparency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/transparency-not-enough-why-open-source-alone-cant-fix-cbdc-problems\/#Lessons_from_Brazil_and_Norway\" title=\"Lessons from Brazil and Norway\">Lessons from Brazil and Norway<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/transparency-not-enough-why-open-source-alone-cant-fix-cbdc-problems\/#The_Future_of_CBDCs\" title=\"The Future of CBDCs\">The Future of CBDCs<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_Illusion_of_Transparency\"><\/span>The Illusion of Transparency<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The purpose of central bank digital currencies is to provide efficiency and transparency.<\/strong> Nevertheless, on closer analysis, we see the other side. Some policymakers propose that open-source coding will help but it is far indeed from a magic bullet.<\/p>\n<p>However, in the domain of cryptocurrency, open-source code is treated with incredible respect for its transparency. It facilitates third-party audits and verifies that characteristics such as supply limits are authentic. But, <strong>CBDCs<\/strong> has its own challenges.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lessons_from_Brazil_and_Norway\"><\/span>Lessons from Brazil and Norway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Last year, in Brazil, the central bank\u2019s pilot CBDC unveiled shocking spyware hidden in its code.<\/strong> CBDC users are the opposite of decentralized cryptocurrency users because the latter enjoy a defense against government control. Transparency, though an excellent thing to have, does not give power to citizens to make a difference.<\/p>\n<p>In the U. S. open-source code transparency shows exceptions for extensive financial surveillance. Central bank of Norway\u2019s open-source flirtation discloses short lived nature of government promises. Project Hamilton of Federal Reserve is an example of the mismatch between research and action.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Future_of_CBDCs\"><\/span>The Future of CBDCs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Despite congratulations for the policymakers for the adoption of the transparency, this is far from being enough in dealing with such pitfalls of <a href=\"https:\/\/coinengineer.net\/blog\/new-zealand-aims-to-move-further-on-cbdc\/\">CBDC<\/a>. A decentralized cryptocurrency provides users with live information that guides them to make decisions, which is something CBDCs do not offer. CBDCs may lead to consolidation of government power, which will radically change economic freedom.<\/p>\n<p>As development of the CBDC takes shape, the fault lines get sharper. Transparency in itself will not address the key problem of government overreach in financial systems. In pursuit of a monetary future, the power balance is waiting in the balance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Central Bank Digital Currencies (CBDCs) are emerging as the future of money for governments across the world. However, recent incidents with Brazil and Norway are sending warning signals from these crypto currencies. The Illusion of Transparency The purpose of central bank digital currencies is to provide efficiency and transparency. Nevertheless, on closer analysis, we see<\/p>\n","protected":false},"author":6,"featured_media":18138,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[6034],"class_list":["post-20203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-genel","tag-central-bank-digital-currencies-cbdcs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Transparency Not Enough: Why Open Source Alone Can&#039;t Fix CBDC Problems - Coin Engineer<\/title>\n<meta name=\"description\" content=\"From Brazil to Norway, discover why transparency alone isn&#039;t enough to solve the pitfalls of Central Bank Digital Currencies (CBDCs). Explore the limitations of open-source coding in addressing government overreach in the financial landscape.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/transparency-not-enough-why-open-source-alone-cant-fix-cbdc-problems\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Transparency Not Enough: Why Open Source Alone Can&#039;t Fix CBDC Problems - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"From Brazil to Norway, discover why transparency alone isn&#039;t enough to solve the pitfalls of Central Bank Digital Currencies (CBDCs). 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