BIP-119 - can it increase custodial overreach? A Pleb Question
6 sats \ 2 comments \ @opiental 22 May 2022 bitcoin
Is this scenario possible using covenants in BIP-119?
"Effective 01 June 2023, all recipients of US Government WIC (Women, Infant and Children) funds will be eligible to register for the new BitWIC card. There are many exciting benefits available with this new program. Here are just a few:
  1. WIC recipients can now be sure that their card will work hassle-free at WIC-approved locations. The card will be accepted at stores displaying the BitWIC logo within two miles of the recipient's address.
  2. We are excited to announce a significant expansion to the WIC program. Fifty dollars of your BitWIC card will be reserved for use at WIC-approved gas stations per week, allowing recipients greater ability to choose health care options that may not available within their state. This amount can decrease or increase based on cost estimates compiled in real-time by the USDA. Adjustments to the gas reserve amount will take place quarterly.
Remember, by limiting BitWIC to approved locations, we are able to combat fraud and provide the best possible service to pregnant persons and their desired offspring."
"Not your keys, not your Bitcoin" seems to take on new urgency if the above scenario is possible. BIP-119 appears to give more power to custodians. Is this pleb wrong? Thanks in advance for your comments.
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0 sats \ 1 reply \ @timechain 22 May 2022
I'm not really sure that this is the best example, because WIC money and EBT money already comes with many limitations on where and how it could be spent. I imagine if any type of UBI is created, that would also be the case. They already do an effective job on restricting items that can be purchased. If (when) a CBDC comes, it would be even easier. Most government social welfare programs are paid with the printing press, so I don't think they will fund these programs with money they can't create (like Bitcoin)
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0 sats \ 0 replies \ @opiental OP 22 May 2022
Excellent points, especially the last one. I wasn't thinking macro enough with the example.
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