Former Coinbase CTO Warns Of Tech’s Role In Asset Seizure
In a recent interview on the Impact Theory podcast, Balaji Srinivasan, the former chief technology officer of Coinbase, issued a warning about the potential betrayal of the American people by some of the world’s most prominent tech companies. Srinivasan suggested that if the G7 nations agreed to allow the seizure of digital assets, tech giants like Apple, Microsoft, and Google could assist them in carrying out such actions.
Former Coinbase CTO Balaji Srinivasan said in a podcast: if G7 nations decide that digital asset seizure is allowed, then tech giants such as Apple, Microsoft and Google could scan the devices to find and hand over private keys to authorities if they were ever ordered to do so.…
— Wu Blockchain (@WuBlockchain) June 19, 2023
Digital Asset Seizure in Economic Crisis
Srinivasan, a well-known advocate for Bitcoin (BTC), expressed his concerns that countries might resort to seizing digital assets in their efforts to recover from economic turmoil. He proposed that tech giants could easily scan personal devices, locate private keys, and hand them over to authorities if they were ever instructed to do so.
The former Coinbase CTO emphasized the significance of this potential development, stating, “G7 countries are going to have a real problem, and they’re going to be harder for money, and then a lot of the world hinges on whether or not the G7 countries and China can seize digital assets. If they can, that’s like one branch point in history.” He further explained that if asset seizure were possible, it would lead to the dominance of central bank digital currencies (CBDCs) and a shift away from individual empowerment.
Privacy Concerns
However, Srinivasan also outlined an alternative scenario. He proposed that if digital asset seizure proved unattainable, communities could establish their own digital gold or cryptocurrency-based economies. This, in turn, could lead to the emergence of “network states” where communities could crowdfund and develop their own territories, reminiscent of historical events such as the Alaska purchase or the Louisiana Purchase.
Srinivasan identified Apple, Google, and Microsoft as the potential catalysts for assisting governments in seizing digital assets due to their access to operating systems. He expressed particular concern about the software updates provided by Apple, the access Google has to Google Drive, and Microsoft’s control over the Windows operating system. In theory, if ordered by the state, these companies could scan users’ hard drives for private keys and subsequently surrender their digital assets.
