Every token transfer will be subject to compliance checks, directly recorded at the protocol level.
Automated token-level compliance means that every daily payment you make, every transaction with merchants, even every social benefit payment, instantly triggers a compliance check and creates a permanent record. The white paper clearly states that this audit trail exists on the chain, is immutable, and is stored forever.
This creates an absurdly misleading perspective: on one hand, ordinary people using CBDC for payments truly gain privacy protection through ZKP, your transaction amounts and recipient and sender addresses are hidden; but on the other hand, the system simultaneously generates a permanent 'compliance check record.' This record contains your identification tags and timestamps, forever etched in the chain. Once regulatory bodies slightly extract this metadata — even without knowing the exact amount, just based on the frequency and timestamps of your high-frequency transactions, it will be quite enough to expose you. #signaladvisor
I am even more concerned about the function of 'mandatory execution of transfer limits' laid at the foundation of the token.
The system will automatically check your limits before each transaction. However, the white paper does not state at all: do ordinary people have the right to know what their limits are? Can limits be quietly lowered due to certain ratings? Imagine this picture: there is clearly money in your wallet, but the app shows that everything is fine, however, when you try to pay by scanning, the transaction constantly fails due to relevant obstacles. From a user’s point of view, this is called a network failure; but from a compliance perspective, it is called 'the system works perfectly.'
The system even contains a feature of 'automated control reports.' Regarding whom the reports are sent to, what details are included, what conditions trigger them — all of this is an undefined blind spot.
A rhetorical question arises: is linking anti-money laundering checks and transfer limits directly to the foundation of the token actually a technical revolution that eliminates regulatory barriers, or is it just the ultimate monitoring network disguised as Web3 privacy that truly has no blind spots?