The Golden Tax IV: The great ambition of the Chinese government.
China has always demonstrated its great ambition to be the absolute controlling entity of everything. With different policies they have established laws that take competitors out of the way, for example by expelling from the Asian country all miners, exchanges and declaring cryptocurrencies illegal, but the Chinese government has not only gone that far, it has also launched projects such as the digital Yuan, which according to the Chinese government, will be the new stage in the era of digitization and economic strengthening of China as a nation. But in reality we all know that it is a new way to gain full control over the global economy.
Made by me in canvaBut as the Chinese communist party, always wants to go a step ahead in terms of controlling the population, recently announced a new government tool The Golden Tax IV, with which they intend to be literally the gods of the economy, as they would be controlling even the most minuscule aspects of one of the most powerful economies in the world, but with the argument that it is only to avoid paying taxes.
The Golden Tax IV system will gather data from companies, market regulators and banks, with which it will be able to thoroughly analyze who or what company is evading taxes, in addition to other uses such as business data management, capital, company personnel and other useful data for tax payments, since it will create an intelligent tax system powered by big data, cloud and AI technologies.
But as the popular saying goes, all that glitters is not gold. Because we already know where all this is going with the implementation of the Golden Tax IV since China has eliminated all possible ways for people to evade these measures. For example, it has outlawed cryptocurrencies, miners, and exchanges, so people will not be able to access cryptocurrencies to avoid having their income monitored.
In addition, it is also totally changing the monetary economy by implementing a CBDC system and eliminating physical paper which is one of the oldest ways to avoid being tracked and evade some controls imposed by the government. But everything changes with CBDCs as they are a hybrid between cryptocurrency and fiat money that gives the Chinese government total control of every transaction that is made so that they can eliminate from the board of the economy anyone who is against them or is a direct threat.
Zeng Liaoyuan, a professor of information and communications engineering at the University of Electronic Science and Technology of China, used an appropriate word for Golden Tax IV, he mentioned that it would be like a huge X-ray machine since absolutely everything would be totally exposed but it would only favor the Chinese government. In addition, if this technology is successful, there are likely to be many countries that would also copy these measures in their economies, to be used primarily to regulate high-income earners who may threaten the economic security of a nation.
The implementation of Golden Tax IV will bring many positive and negative repercussions, positive because there are hundreds of thousands of people in China who have fortunes in the millions and who obviously will not want to give anything in taxes to the Chinese government, which will make them look for the ultimate store of value which is the cryptocurrencies. This will make the crypto market grow to impressive levels and will also bring innovations.
And negative, because if this program is successful in China and no one escapes government control, other countries will rush to develop similar systems and change their physical currencies to CBDC, which will also come with anti-cryptocurrency rules as happened in China.
So hold on to your seatbelt, the journey is just beginning.
Posted Using LeoFinance Beta
