The previous scandal, caused by leaked documents in Panama which showed tax evasion and corruption of many political and public figures, has raised an old debate about how to balance privacy and transparency. Many libertarian ideas and others of privacy advocates believe that the future of financial secrecy lies into the crypto-currencies as the Bitcoin and technology blockchain that supports it. These digital currencies allow anonymous transactions and both have been associated with illegal financial transactions, such as the drug traffic in the web market.

However, it is not that simple because the technology behind the Bitcoin known as blockchain, is a book of distributed public accounting. Which it means that instead of relying on a single trusted source, such as a bank or a clearing house, the blockchain refers it to a decentralized network of machines. This network creates safety through redundancy, based on calculations of consensus of many machines.

And it is thanks to decentralization and strong cryptography that dishonest merchants can’t go back and alter the historical transaction logs that if they want to do it they would have to alter the records of thousands of machines in different parts of the world. In addition, every transaction made through this technology, is available so everyone can see it, even if specific transactions can’t be attributed to specific people. For this reason, the type of illicit financial agreements, exemplified by the documents of Panama could be banned from blockchain technology.

The problem lies in the Government and central banking, that is defined it in its note the website cointelegraph which explains that the corruption, hypocrisy and inequality in the scandal of the documents of Panama are not the problem, but the symptom. “The real issue at hand is a global financial system that benefits the wealthy elite at the expense of the masses. A legal structure that enforces high rates of taxation, while simultaneously providing loopholes for the rich and savvy to exploit, leaves the poor and middle class paying most of the taxes.”

But why the solution would be the use of the bitcoin and blockchain?

As if were implemented the use of the Bitcoin as main currency is forcing everyone to play by the same rules, both rich and poor alike; and those rules are not made by a ruling elite, and neither are rules that they can modify to suit their whims. The crypto-currency offers a truly equitable monetary system, which is much more difficult to manipulate, adapting it to the whims of any bureaucrat who is trying to loot the public.

Do you think that the bitcoin is a system that would keep the corruption just on the sidelines?

Sources: pbs, cointelegraph

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.