Giving central bank currency traceability will eliminate corrupt cash transactions

People over 50 often feel worried or sad about the chaotic social situation. I am often pleased with the global confidence and pride that China's economic boom has brought over the past 30 years of reform and opening up, but I am also troubled by the rebellious thoughts of young people on the Internet due to their consistent opposition to corruption and spiritual degeneration. Although I know that the conceptual game between capitalism and socialism, the collision between planned economy and free competition, and the cycle of democratic regimes and centralized governments for thousands of years have never verified the long-term prosperity of any extreme system, it is not a good thing to make the whole country angry. The radical angry youth always like to talk about "revolution". How can they know that the stability and harmony of China today [relativity] are hard to find in the world? How unreliable is this idea! But this stubborn disease of "corruption" is really heartbreaking and really wants the Chinese government to die!

Since 2016, I have been obsessed with digital currency. I have read the central bank's announcement on digital currency research and Zhou Xiaochuan's dialogue with Caixin reporters, and the recent frequent in-depth research articles on digital currency and blockchain at the level of vice presidents of central banks or commercial banks. Although no one has made a conclusion on central bank currency, and basically tends to clearly define the essential difference between legal currency and private currency, and directly preside over the issuance and operation management of digital currency at the central government, or continue to maintain the binary structure of the central bank and commercial banks, the in-depth exploration of digital currency in terms of traceability is still not enough, so that I often think hard about how to let the decision-makers see this great revolutionary place? Suddenly one day, it suddenly became clear, and I even wanted to shout the slogan "Digital currency can save China!"

Hey, don't rush to label people. Like most people, I believe that if the Chinese government does not scientifically solve the problem of combating corruption, the credibility of the regime will be in jeopardy. However, as long as it can effectively eliminate and curb corruption, you can believe that China's "state capitalism + macro-planned economy + micro-market economy + smart yellow skin" is really more powerful and eternal than the "pure free competition mechanism" of Europe and the United States, which are on the decline. Therefore, the current focus is how to combat the stubborn disease of "corruption."

In a debt-based monetary system based on the gold standard or paper money, gold and paper money have value storage or legal tender. In terms of understanding assets and wealth, people inevitably have a spiritual totem of owning more gold and paper money. In recent years, China's definition of whether a person is successful is directly linked to the amount of wealth. The pursuit of making money has lost too many fine traditions and virtues, and even destroyed personal health and happiness. The level of civilization and cultivation of the entire society has continued to decline. The expectation of asset inheritance and blessing for future generations has also increased the desire to harvest and hoard these financial assets. After the "fly-hitting and tiger-hitting" campaign began, there were always rumors on the Internet about how many hundreds of millions, tons of RMB or US dollars, and kilograms of gold were seized, and there were always interesting stories about burning out several banknote detectors. This is the root cause of the extreme materialism of the whole society.

This brings us to the technical issue that we are most concerned about in this chapter, which is the "anonymity of gold and paper money." Many big tigers do not have many luxury houses or luxury cars, and they do not even spend lavishly, because these displays of wealth will expose their corruption and irrational sources of income. During the interrogation of Bo Xilai, his son's villa in France became an indelible evidence of bribery, because it was visible and tangible and had real-name authentication. But the cash and gold hoarded in basements, warehouses, and under beds are completely anonymous. As long as the stolen goods are not found, they are honest and can be passed on, distributed, transferred, and inherited by anyone without being pursued. The root of all this is that "gold and paper money" are "anonymous."

Basically, the general public recognizes a social reality that any leading cadre who strives hard to be promoted to an important leadership position in a government department or a central enterprise and has a certain level and position [the biggest victim of corruption and bribery] must have a better ability and even professionalism than ordinary people during his growth, otherwise he would not be able to succeed in his career. But why do some people later transform? Why do they accept bribes and become corrupt big tigers? All this is due to the "anonymity" of these money and wealth. If they accept it, they accept it. One is willing to fight and the other is willing to be beaten. Both parties are willing, and no one knows. If they don't accept it, they will not follow the trend. If the water is too clear, there will be no fish!

I am not a great and glorious person, nor am I an ascetic. I believe that everyone is born with the instinct and right to obtain more benefits for themselves. Otherwise, human beings will give up progress, their genes will degenerate and be surpassed by other creatures. The results of behavioral science research have also proved that human beings are born with competitiveness and greed, which ensures the continuous reproduction and evolution of human life.

Under the anonymous currency system of gold and paper money, driven by the national conditions of China's centralized government that gives officials too much decision-making power, and influenced by the traditional gift-giving and reciprocity of China's humanistic society, since people can give New Year's money, gifts, and treat others to meals and drinks, it has naturally evolved to the point where cash rewards appear when meals and gifts are no longer enough to express feelings and gratitude. Cash rewards and red envelope grabbing on the Internet have become very common emotional communications. Once this phenomenon is extended to the contracting and management of large-scale government projects, fiscal appropriations, scientific research funds, reward funds, qualification approvals and other fields, it will generate a large amount of huge cash corruption transactions, which will desecrate and damage the government's functions and credit, and directly affect the basic integrity of the ruling party.

Anyone, as long as he is in a collective society, must accept and obey the legal and regulatory constraints established by the collective to maintain fairness, justice and public morality, but this constraint must have a certain degree of controllability and even technical guarantee. As long as the People's Bank of China continues to use the current anonymous paper currency system, the cancer of cash corruption will never be cured!

Don't believe any nonsense about "staying calm and resisting temptation by party consciousness". As long as the cost of committing a crime is too low and the benefits are too great, and it has become a secular trend, some people will take the risk of breaking the law. Especially in the centralized decision-making mechanism, the main person who holds the power of life and death of projects or bidding can completely decide the operation of the entire event, and can make any project application and bidding process watertight, and anonymous cash wealth can roll in. This temptation is always swallowing up leaders and cadres with a little power.

We have reached a time of crisis and extremely intense conflicts. President Xi has said: If corruption is not dealt with, the party and the country will perish. But there is no good way to deal with corruption, which is also confusing, right? In particular, the centralized state system we have created is inherently different from the Western democratic system. We are far superior to democratic governments in mobilizing the whole country to make efficient decisions, but we are relatively backward in the construction of supervision mechanisms and clean government systems. We cannot bear the national political risks of starting over, so we must cherish any historical opportunities for institutional and technological improvement and reconstruction.

"Only digital currency can save China!" It is full of the sincerity of middle-aged people to the country, because as long as the Chinese government introduces the traceability of digital currency into the future central bank digital currency [the detailed technical framework system is subject to historical practice and verification], any smallest unit of currency issued, using blockchain technology to fully record its circulation and exchange between wallet addresses, and all wallet addresses are authenticated by real name, then, every smallest unit of currency, its circulation path, from the day of its birth, is completely stored in the central database of the central bank. When paper money, electronic money in current bank accounts, and debt accounting currency are all converted into central bank digital currency, every penny in China, seemingly in the wallet address of each enterprise or individual, is also clearly recorded in the central bank database, that is, our monetary wealth is completely in a transparent and open general ledger. Without paper money, there is no need to hide money in safes, warehouses, or under beds.

At this time, the motivation for job crimes and cash bribes will be lost, because in addition to legitimate wages, benefits and bonuses, if there is an extra penny in the account, it is clear who gave it, and cash corruption will disappear from then on! Of course, if you are willful enough, you can also accept overseas villas, calligraphy and paintings [ultimately, they also need to be traded to realize their value], eat and drink as much as you want, then you can wait to be exposed by videos and Weibo at any time!

On January 20, 2016, the People's Bank of China issued a high-profile announcement, "Issuing Central Bank Digital Currency as Soon as Possible". This is so domineering that it has not been seen for hundreds of years! The Federal Reserve is evasive, the Bank of England is hesitant, and the Ministry of Finance of Japan is still unable to find its way. However, the People's Bank of China, which has always lagged behind in technical understanding, is shining and showing off. This is absolutely abnormal. Then you have to think: it must be the key core layer that has found a major motivation or policy dividend for the short-term launch of the central bank digital currency [Think about it, every penny of the people across the country is stored in the transparent general ledger of the central bank's database, and cash corruption must have been rectified; but what about fiscal and taxation? Ha, let's see who dares to evade 1 cent of tax? There is no need for any leading cadres to disclose their personal property, because you have already disclosed it to the people of the country at any time. This management and technical dividend is huge].

Therefore, I stubbornly believe that the central bank currency mentioned in several exploratory articles that RMB paper money should transition to electronic money and digital money in order to abolish the cost of printing, issuing, storing, exchanging and recovering paper money and improve the efficiency of the existing banking system's security endorsement transaction process. This is just scratching the surface. In essence, accepting the traceability that blockchain technology can give to digital currency and making all monetary assets traceable is the biggest root cause. Of course, the biggest bottleneck to achieving this ideal cannot be ignored, that is, the existing powerful class and wealthy people, under the 80/20 rule, can exert more pressure and influence on policies and decisions. It depends on them, do they want to let their wealth come into the light? In a country with a strong atmosphere of rule by man, sometimes we have to be tolerant and understand the obstruction of traditional forces faced by the just decision-makers.

The wheel of history is always rolling forward. I have always believed that human society will always be in a general law of short-term ups and downs but long-term spiral rise. So, I am full of confidence in the inevitable issuance of central bank digital currency, and I am full of expectations that the Chinese government will finally eradicate the cancer of cash corruption!