regulatory-challenges

This chapter introduces the regulatory challenges posed by decentralized, blockchain-based systems, tracing their origins to the cypherpunk vision of crypto anarchy. It explains how blockchains operate as tamper-resistant, decentralized databases enabling pseudonymous economic transactions and autonomous smart contracts, while highlighting their potential to disrupt traditional legal, financial, and governmental frameworks. The chapter emphasizes the dual-use nature of blockchain technology, which can both support lawful services and facilitate illicit activities, thus complicating regulatory efforts.

This chapter critically examines Facebook's Libra project, emphasizing the company's intent to leverage the private currency to harvest extensive personal data, despite public promises to the contrary. It highlights Facebook's historical pattern of privacy violations and data misuse, arguing that Libra and its Novi wallet would extend Facebook's surveillance capabilities into the financial realm, particularly through digital identity control. The chapter predicts inevitable privacy abuses and regulatory challenges if Facebook gains control over global financial data and digital identity standards.