Vikara March 2024 Update: Heading towards a digital future

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If it isn’t already apparent, we are heading towards a digital future. Digital identities, digital wallets, digital social scores, and digital control. It is no longer up for debate. Global governments are seizing the opportunity to link every fundamental human right to a centralized digital system. 

These rights may include access to healthcare, a bank account, your identity, the right to vote, to run a company, or to drive on taxpayer roads. How can we expect to exercise free speech when an “off” switch can be flicked if one has an opposing view? 

Figure 1 – This is the infrastructure we are currently being forced into. Source: blog.digitalasset.com, Vikara Capital

This month, Australia’s senate voted to adopt a digital identity with no opportunity for debate, the SWIFT network announced it is developing infrastructure for cross border central bank digital currencies, and the European Council formerly adopted European digital identity wallets.  

This centralized system, which will be linked across all western governments, has an extremely high likelihood of being corrupted due to the degree in which it will concentrate power and control in the hands of a few. Governments want to own, operate, sensor, and regulate your access to their society.

 

While digital ID’s are being pushed under the guise of convenience, the ultimate goal is to connect everything you say on-and-offline to a central bank digital currency, which will transfer your basic human rights to movement, speech, and assembly, to an unelected committee.

The infrastructure being installed today has the potential to oppress every human being. The leaders promising that it is in our “best interest”, will inevitably be replaced by different faces and agendas.  

We will no longer be talking about mis-or-dis-information. There will be one source of information: the government. Everything else will be irrational waffle that does not fit into the world view we are allowed to align with. It sounds draconian but the systems being installed today have the potential to create such a world.

We suggest thinking about the tail risk of government-imposed constraints. Research decentralized systems and understand the value of self-custody. Understand what the alternatives are and why having them is important.

We regularly talk about this with our LPs. The infrastructure being built in digital assets right now is the alternative to centralized and autocratic control. Vikara is investing in the platforms of the future that will allow many around the world to an alternative to centralized systems. 

To access the full article, please download the PDF.

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