Tag: privacy

Sleepwalking Into a Cashless Society

Philip Lane, chief economist of the European Central Bank, recently expressed urgency for the need to develop a digital euro—also known as a central bank digital currency (CBDC)—to compete against stablecoins such as Tether and electronic payment systems developed by U.S. tech firms, such as Google Pay and Apple Pay. Not content with eliminating cash, now the goal of central banks is to eliminate any competing electronic payment system.

We’re sleepwalking into a world with digital currencies without any government coercion whatsoever. As a 51-year-old Generation Xer, I carry lots of cash in my wallet. I teach personal finance at the local university and recently asked a class of about 30 students if any of them had any cash. Not one of them had a single bill or coin on them. They use debit cards, credit cards, Venmo, and Apple Pay. As it turns out, cash usage among the 18–24 age cohort has declined from 28 percent to 13 percent over the last five years. Most like the convenience of electronic payments, even though studies show that people spend 12 percent to 18 percent more when using credit cards than cash. If the government does attempt to implement a digital dollar, there will be little resistance to it.

Currently, there is $2.36 trillion in U.S. currency in circulation. Of course, much of this is held outside our borders, owing to the dollar’s dominance as the global reserve currency. The most common denomination of U.S. currency is the $100 bill. There are more $100 bills in circulation than $1 bills. Many residents of foreign countries, such as Argentina, consider the U.S. dollar to be a store of value and a hedge against inflation and local currency depreciation. If the U.S. government ever decided to phase out paper currency, it would have far-reaching effects around the globe.

Promoters of a digital currency allege that it would cause a drop in criminal and illicit activity. That may be correct, or people may simply resort to another medium of exchange or barter. Philosophically speaking, virtue is not possible without the freedom of choice. If people can’t choose to misbehave, it does not make them virtuous. A society in which nobody has the freedom to misbehave is far more horrifying than a society where people actually misbehave. 

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Replacing Cash With Digital Dollar Would Pose A Grave Threat To Our Rights and Freedoms

The Bank of Canada has made no secret of its efforts to explore a Central Bank Digital Currency (CBDC), a “digital dollar” issued and controlled by the central bank. The Bank of Canada is not alone. To date, 134 countries and currency unions have explored a CBDC, and 66 countries are already in advanced stages of implementation.

In 2023, cash accounted for a mere 11 percent of total payments made by Canadians. Consumers increasingly tap their credit and debit cards at checkouts, send e-transfers, or use online banking to pay bills, make investments, and donate to charities. For many Canadians, metal coins function less like a currency and more like a locker or shopping cart token; paper bills are for birthday cards, not for “serious” transactions. New legislation in Quebec empowers law enforcement to presume that cash sums of $2,000 or more are the proceeds of unlawful activity.

While most consumers seem to appreciate the convenience of an increasingly digital economy, a CBDC is a radical change from using credit cards and online banking apps. A CBDC would likely lead to a cashless economy, in which all financial transactions can be monitored and controlled by government. A cashless economy would create severe hardship for people who are homeless, technologically illiterate, or without ready access to the internet.

For Canadians who look after their finances electronically, cash remains essential to protect their rights and freedoms, including their privacy, security, and autonomy. In a cashless economy, all transactions are digital, subject to surveillance, and ultimately subject to government control. CBDC opens the door for governments to reward or penalize Canadians for their personal choices on how to live, where to go, and what to do with their own money.

Governments can use CBDC to restrict when, where, and what people are allowed to buy, leading to a level of control resembling communist China’s notorious “social credit” system. China uses “social credit” to reward citizens who support the Communist Party and its rules and policies. Those who criticize the Party can find themselves unable to board a train, plane, or subway, denied a bank loan, or prevented from enrolling their children in the best schools and universities.

Cash means privacy and confidentiality.

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Congressional Hearing Reveals Stablecoins And CBDCs Share The Same Financial Control Risks

A congressional hearing on digital currencies rarely makes headlines. Yet, this week’s debate over stablecoins and central bank digital currencies (CBDCs) revealed more than technical disagreements; it exposed deeper anxiety about financial power, privacy, and control in an increasingly digital world.

The conversation unfolded along predictable lines. Those skeptical of CBDCs warned of creeping surveillance and government overreach. Advocates, meanwhile, framed it as a necessity, a matter of American competitiveness in a world where China and Europe are already moving ahead. Yet what emerged, almost inadvertently, was a realization that the supposedly safer alternative, privately issued stablecoins, carries many of the same risks.

While CBDC opponents championed stablecoins as the free-market alternative, testimony from industry leaders revealed that stablecoins — despite their branding as decentralized, private-sector solutions — already carry many of the same risks. The ability to freeze assets, enforce government mandates, and track transactions is a present reality, especially when combined with Know Your Customer (KYC) laws which eradicate privacy.

The core argument against CBDCs is simple: they give the federal government unprecedented control over personal finances. Randall Guynn, Chairman of the Financial Institutions Group at Davis Polk & Wardwell, issued a stark warning.

“A CBDC would give the Federal Reserve staff a direct window into virtually every transaction every person in America makes,” he said. “And at least one of them won’t be able to resist the temptation to use that information to promote what they consider to be worthy political goals.”

His comments echoed a broader concern: a US CBDC could function as a financial surveillance tool, much like China’s digital yuan. In China, authorities can track purchases in real-time and even restrict how certain funds are spent. Many fear the US government could use a CBDC to implement similar controls — whether to enforce political objectives, regulate behavior, or even deplatform individuals from the financial system.

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Finland’s Big Bet on Biometrics: Crime-Fighting Tool or Privacy Nightmare?

Finland has come out with a plan to expand the use of biometric data, with a new a new proposal from the country’s Interior Ministry.

Even as the push to introduce various forms of advanced biometric surveillance, including that incorporating facial recognition, is gaining momentum in countries around the world – so is the pushback from civil rights and privacy campaigners, which ensures that such initiatives these days rarely fly under the radar.

Finland’s Interior Ministry announced on its website that the proposal aims to amend existing rules on biometric data stored by the police and the immigration service – stored, that is, in Finnish citizens’ ID cards, and registers containing biometric data of foreigners.

The government says the intent is not only to strengthen crime prevention – but also to “improve the conditions for using biometrics in law enforcement.”

In addition to the collection of data captured by facial recognition devices, the proposal includes DNA samples and fingerprints taken from suspects. The process is then to attempt to match this biometric data with other types already contained in the law enforcement’s databases – for “crime prevention and investigative purposes.”

The groups keeping a close eye on this development are warning about some of the issues that crop up time and again around similar legislative efforts: the wording that allows for future “mission creep”- as well as unsatisfactory level of provisions that would guarantee against any abuse of such highly sensitive personal information.

Currently, the Finish proposal is yet to be presented to the lawmakers – the Interior Ministry is seeking comments before this can happen. And while the announcement of the proposal goes into the intent driving it, it is short on detail regarding the elephant in the room – privacy safeguards.

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Doxing website that shows personal details of Tesla owners has Molotov cocktail as cursor: report

A website called “Dogequest” reportedly has published the personal information of Tesla owners nationwide in an apparent bid to shame and intimidate them as Elon Musk’s ties with the Trump White House have grown.

The site, called “Dogequest,” reportedly reveals the names, addresses and phone numbers of Tesla owners throughout the US using an interactive map — and uses an image of a Molotov cocktail as a cursor.

The site’s operators, who also posted the exact locations of Tesla dealerships, said that they will remove identifying information about Tesla drivers only if they provide proof that they sold their electric vehicles, according to 404 Media.

News of the doxing site follows a string of reported incidents of vandalism aimed at Tesla drivers and dealerships in the wake of CEO Elon Musk’s high-profile role as head of the Trump administration’s Department of Government Efficiency (DOGE).

The website also hosts personal details allegedly belonging to employees of DOGE, according to the 404 Media report, though the authenticity of the information has not been confirmed.

It is unclear where the alleged Tesla owner data has been sourced from.

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Medical Surveillance Part 2: Tracking the Unvaccinated

Part 1 of “Medical Surveillance” revealed how contact tracing evolved into databases called real-time AI ecosystems. The data stored in these ecosystems ranges from medical records to genomic sequences that were largely collected using Covid-19 PCR tests. Health privacy laws were revised to enable an alarming amount of data sharing with public and private intelligence agencies for military operations. Using the Covid-19 scamdemic as a front, the military worked with so-called health authorities to weaponize Covid-19 statistics to target non-compliant or undesirable groups with mRNA vaccines, ventilators, and Remdesivir. In other words, it was a military operation that utilized covertly collected private medical and genetic data to deploy bioweapons. Targets were acquired using AI generated predictive behavior models provided by government intelligence agencies like Palantir. If that sounds disturbing to you, keep reading because that was just a warm-up.

The DELAYED REACTION THAT ENABLED THE ILLUSION OF THE PANDEMIC OF THE UNVACCINATED

As contact tracing phased into the background and the genome-collection method known as PCR testing was normalized, one more important piece of data needed to be collected: vaccination status.

The mockingbird media foreshadowed that vaccination status must be made public information because during a public health emergency everyone has a right to know their risk. Soon everyone would need to have a Covid-19 shot to travel, work, go to school, and participate in society. All this would inevitably lead to a vaccine passport. Yet there was no official way to track who was vaccinated in the healthcare industry.

The CDC and Medicare (CMS) announced new codes for tracking vaccination status that would go live on April 1st 2022. The update occurred exactly two years after the Covid-19 diagnosis code went live — on April fools’ Day. This time the emergency update was for the purposes of tracking vaccination status. It just wasn’t an emergency during the most aggressive portion of the vaccine campaign; the part where everyone had to get the shot in order for society to come out of lockdown and “go back to normal”. At any point during 2021, the CDC, CMS, or the AMA could have stopped the presses to do another emergency update to introduce a new code for vaccination status (or for adverse events, for that matter). They did not.

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Ultrasonic Beams Create Private Sound Pockets

Ultrasonic beams fired through a 3D-printed metasurface can create localized pockets of sound that are inaudible to passers-by. The technique could be used to create private speech zones for secure communications or enable personalized audio spaces in public spaces and vehicles.

The ability to deliver sounds to a specific listener without the need for headphones, known as directional sound, has been a long standing area of research in audio engineering. But achieving this typically requires large and complicated sound sources and it is often possible to hear the audio signal along the path of the beam.

A new approach from researchers at The Pennsylvania State University gets round these limitations by combining a compact array of ultrasonic emitters with a specially patterned 2D structure, which is designed to manipulate the properties of waves. This structure, known as a metasurface, creates “self-bending” ultrasound beams that are inaudible to humans and can steer round obstacles. When two of these beams cross paths they interact in a way that generates sound in a human’s audible range but confined to a spot just a few centimeters across, which the researchers call an “audible enclave.”

“The key innovation is that sound is only generated where two beams intersect, making it possible to deliver audio to a precise spot while keeping the beams themselves silent,” says Jia-Xin Zhong, a postdoctoral research at Penn State and lead author of a paper in the Proceedings of the National Academy of Sciences that describes the new approach.

Previous research has demonstrated audible self-bending beams that can curve around obstacles. But the long wavelengths of audible sound mean the sources typically have to be on the scale of meters and it is possible to hear the signal anywhere along the path of the beam.

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California Democrats Push Privacy Bills to Help Migrants Hide from ICE

California Democrats are drafting bills that would hinder federal immigration officials from using commercial data to locate illegal aliens for deportation.

Records show that federal authorities have contracts with several data analytics firms including LexisNexis and Thomson Reuters, according to Politico, and state Democrats are floating bills to tighten up what information such services can sell and how they do it with an eye toward precenting ICE from using the info to the greatest extent they can.

Without stating any direct proof, Democrats in the state are worried that federal authorities are using personal location data to aid in tracking migrants.

The worry was summed up by Shiu-Ming Cheer, deputy director of immigrant and racial justice at the far-left California Immigrant Policy Center, who told Politico, “It really does seem like looking at technology and the use of information has been this sort of second frontier in terms of immigration enforcement.”

The fear is spurring a new avenue for blue state Trump resistance.

Extreme, left-wing California Attorney General Rob Bonta, for instance, recently insisted that data needs to be protected from Trump’s administration.

“This location data is deeply personal,” Bonta said in a statement. “Given the federal assaults on immigrant communities, as well as gender-affirming healthcare and abortion, businesses must take the responsibility to protect location data seriously.”

Democrat state Sen. Josh Becker exclaimed that Trump is “establishing a vast surveillance network” and he is introducing a bill that would force data brokers to publicly disclose whether they collect and sell user data, including immigration status, sexual orientation, union membership, and government ID numbers.

He claims his bill is “especially necessary now as we see the reality of mass deportations of immigrants and the targeting of the transgender community.”

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Trump Treasury Expands Financial Surveillance

More than one million Americans are about to face a new level of financial surveillance. The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced that the threshold for currency transaction reports has been lowered from $10,000 to $200 for Americans living in 30 zip codes in California and Texas. Financial surveillance in the United States has long needed reform, but this move is in the wrong direction.

FinCEN officially announced the temporary policy change as an effort “to further combat the illicit activities and money laundering of Mexico-based cartels and other criminal actors along the southwest border of the United States.” Treasury Secretary Scott Bessent said, “As part of a whole-of-government approach to combatting the threat, [the] Treasury remains focused on leveraging all our available tools and authorities to better identify and counter these criminal activities.”

While this announcement is disappointing, it is not surprising. Alex Nowrasteh, the Cato Institute’s vice president for economic and social policy studies, warned people in February that President Trump’s decision to designate cartels as terrorists could have repercussions for civil liberties and the economy at large. Specifically, Nowrasteh noted that the designation would allow the government to freeze assets, enact secondary sanctions, and take greater control of the financial system generally.

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Spies, Secrets, and iCloud: Apple’s Legal Showdown in London

The Investigatory Powers Tribunal (IPT) in London is the one that will consider Apple’s appeal against the UK’s Home Office secret order to include an encryption backdoor in the giant’s iCloud service.

As things stand now, pending the outcome of the legal – and political – wrangling, iCloud users no longer enjoy the security and privacy benefits of the Advanced Data Protection (ADP).

This affects iCloud Backup in the following categories: iCloud Drive, Photos, Notes, Reminders, Safari Bookmarks, Siri Shortcuts, Voice Memos, Wallet Passes, and Freeform.

Meanwhile, the tribunal itself is “secret,” and the date it will consider Apple’s attempt to avoid the permanent breaking of encryption, and of the trust of its users worldwide, has been set for Friday, March 14.

But privacy activists like Privacy International (PI) want these hearings to be public, since the outcome of the UK’s anti-encryption push potentially affects millions, possibly billions of people around the world.

Secret as it may be, the IPT – which is believed to normally deal with national security issues – announced Friday’s closed-door meeting, a move that is described as “unusual.”

Unusual perhaps, but not illogical – Apple’s appeal against the original secret order was also apparently meant to be secret but has in the meantime been “leaked” to the public.

The original order came from Home Secretary Yvette Cooper, who targeted the US company with a “technical compatibility notice.” The end result of compliance was giving UK’s spies and law enforcement access to data, by compromising iCloud encryption.

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