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People don't like it being harped on, and while I widely understand why a bunch of snakes pulling every get rich quick scam using it has given it a bad reputation. Crypto going mainstream is the only solution to this problem.
Quite right. As time passes, cash will diminish. It's more convenient to swipe a card or scan a QR code.
Either we end up using privately run cryptocurrencies or state-run central bank digital currencies. Right now there are some issues with transaction costs, scams and volatility on the crypto front.
However, if we end up using CBDCs, human freedom is caput. CBDCs allow total financial surveillance and total financial suppression. It goes beyond debanking, you could make people impossible to transact with. This is the key technology that allows for totalitarian social credit schemes, the seeds of which we see in China. CBDCs are seductive to governments and central banks - taxes become impossible to evade! Monetary policy can be implemented hour by hour! Criminal assets are easy to seize, money-laundering is impossible. But they also enable the mainstreaming of the debanking tactics we've seen with Paypal and high-profile wrongthinkers. After cash people will probably stop thinking of money as something concrete and physical, it becomes an abstract, malleable concept. Your UBI money can only be spent on the right goods, made by the right people. Maybe the climate means you can't buy more than a certain amount of real meat each week, perhaps you can't fly more than what's strictly necessary for your work. Your stimulus money has to be spent in 30 days before it disappears. Billy might pay different prices on the same good to Aisha or Joe. Your politics are dangerous and unacceptable? Good luck getting a website, accepting donations or doing anything at all.
And why would you need a digital currency for this and not current electronic cash? Many people even in Russia already live basically without using physical cash at all and that doesn't stop them evading taxes.
Electronic cash is basically the same thing as a CBDC, they just haven't added all the AI-enabled fine-grained control and monitoring yet. They can print and freeze money at will, it's just a hassle for them to do so.
Taxes are easy to evade all around the world because the administrative capacity and technical methods are poorly developed, especially in Russia. But they won't be poorly developed forever. China's social credit scheme is pretty benign at the moment, you just can't get certain train tickets if you're a scammer, have to put down deposits to rent an e-bicycle. But it won't stay that way forever, they're testing and developing it over time.
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