JP Koning writes: An interesting side point here is that Canadians don’t forfeit their privacy rights by giving up their personal information to third-parties, like banks. We have a reasonable expectation of privacy with respect to the information we give to our bank, and thus our bank account information is afforded a degree of protection under Section 8 of the Charter. My American readers may find this latter feature odd, given that U.S. law stipulates the opposite, that Americans...
Read More »Money and Memory
On Alphaville, Claire Jones and Izabella Kaminska discuss privacy issues related to CBDC. In the background, Kocherlakota’s “Money is Memory” is lurking.
Read More »Censorship Resistant Payment Technologies
On Coin Center’s blog, Matthew Green and Peter van Valkenburgh write: Censorship resistance is the only way to guarantee that a digital asset truly is “bearer” and can be sent directly from one person to another without reliance on a third party. Cryptocurrencies achieve this property by making network participants (miners) compete for the power to add transactions to the ledger. Even if some miners wish to censor a transaction, we assume that others will not, particularly if it means...
Read More »Edward Snowden’s “Permanent Record”
An intriguing description of America’s intelligence community and the industry surrounding it; the slippery slopes; and Snowden’s motivation for following his conscience rather than the money. From the book, how we got here: [After 9/11] [n]early a hundred thousand spies returned to work at the agencies with the knowledge that they’d failed at their primary job, which was protecting America. … In retrospect, my country … could have used this rare moment of solidarity to reinforce...
Read More »“Digital Finance,” FuW, 2020
Finanz und Wirtschaft, January 4, 2020. PDF. Finance has been digital for decades. And both technology and preferences are only changing gradually. So, what triggers the abrupt changes in business models that we currently observe? The interaction between industry on the one hand and legislators and regulators on the other has changed. New entrants exploit synergies across areas that have so far been regulated by independent authorities, or not at all. While entrants think and act outside...
Read More »With Whom Paypal Shares Payment Information
List of third parties (other than PayPal customers) with whom personal information may be shared, according to Paypal, October 2019.
Read More »Spyware for Sale
NSO Group “creates technology that helps government agencies prevent and investigate terrorism and crime to save thousands of lives around the globe,” according to the technology group’s website. But according to the FT (article, article, article), NSO has (also) helped governments around the world to target journalists and dissidents. The University of Toronto’s Citizen Lab knows more—and offers advice on how to take precautions.
Read More »“Nicht-Wissen kann schützen (Knowing Less Protects),” FuW, 2018
Finanz und Wirtschaft, November 24, 2018. PDF. Ökonomenstimme, November 26, 2018. HTML. European firms dealing with Iran face U.S. “secondary sanctions.” European counter measures (including a blocking statute) prove toothless. Even central banks in the European Union surrender to U.S. pressure, as does SWIFT. Ignorance is bliss: For a sovereign, the best protection against foreign states pressuring to monitor domestic citizens and businesses may be to know as little as possible.
Read More »“Nicht-Wissen kann schützen (Knowing Less Protects),” FuW, 2018
Finanz und Wirtschaft, November 24, 2018. PDF. Ökonomenstimme, November 26, 2018. HTML. European firms dealing with Iran face U.S. “secondary sanctions.” European counter measures (including a blocking statute) prove toothless. Even central banks in the European Union surrender to U.S. pressure, as does SWIFT. Ignorance is bliss: For a sovereign, the best protection against foreign states pressuring to monitor domestic citizens and businesses may be to know as little as possible.
Read More »IMF’s Lagarde Open to CBDC
At a conference in Singapore, IMF Managing Director Christine Lagarde has argued that [w]hile the case for digital currency is not universal, we should investigate it further, seriously, carefully and creatively. In her speech she emphasizes potential benefits related to financial inclusion; security and consumer protection; and privacy. (Privacy would be limited however.) She sees risks as well, including to innovation. But she de-emphasizes the notion of increased run risk which...
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