Surveillance Capitalism and Cashless Society – Economic Sociology & Political Economy

2024-02-10 04:23:37

“The state-of-the-art of computer technology — or, putting it somewhat more broadly, regarding information processing technology — is, I think, a most important sub-set of surveillance technology. […]
The technology under discussion was developed for reasons other than surveillance, but it happens that it is useful for surveillance purposes. As a prime example of this I want to talk regarding electronic funds transfer systems. I can’t give you a detailed definition of an electronic funds transfer system (usually referred to as EFTS) because the system hasn’t been built. Its final form will be an outcome of intensive competition, and also of government regulation. But the general form is reasonably clear. Terminals will exist in stores, hotels, restaurants, etc. (where they are referred to as point-of-sale terminals), and in financial institutions, including unattended terminals miles from the nearest office of the institution. In short, terminals will be at any location apt to have a large number of non-trivial financial transactions.
Let’s look at one way it might work. Say you are regarding to buy a book. You present your card (sometimes called a “debit card”, although National Bank Americard calls theirs an “asset card”) to a clerk who puts it into a terminal which reads it and then calls up your bank. If you have enough money in your account, or if your bank is willing to grant you that much credit, the transaction is okayed; your account is debited; and a credit is dispatched from your bank to the book store’s bank account.
The dimensions of the final form of EFTS which are of importance to its potential surveillance capability are such things as the percentage of the transactions recorded; the degree of centralization of the data; and the speed of information flow in the system.
Suppose for a minute all transactions over $10 must go through the system and that they are immediately debited to your account in your bank’s computer. Thus the system not only collects and files a great deal of data regarding your financial transactions and that means a great deal of data regarding your life — but the system knows where you are every time you make such a transaction.
Suppose that the rule for all transactions over $10 is not compulsory, but voluntary. And further suppose that you have gotten into the habit of using the system because: one, it is convenient; and two, it may be cheaper than other payment mechanisms. Now comes an instance in which you want privacy and decide to use cash. If you have to obtain the cash from the EFT system, that cash transaction will stand out like a sore thumb. The point here is that it’s not enough just to have the option of using cash, the cash option must be used frequently or it becomes useless as a means for privacy.
To give you an idea of how powerful a surveillance system an EFTS would be, consider the following. In 1971 a group of experts in computers, communication, and surveillance was assembled and given the following task: Suppose you are advisors to the head of the KGB, the Soviet Secret Police. Further, suppose that you are given the assignment of designing a system for the surveillance of all citizens and visitors within the boundaries of the USSR. Further, the system is not to be too obtrusive or obvious. Not only would it handle all the financial accounting and provide the statistics crucial to a centrally planned economy; it was the best surveillance system we might imagine within the constraint that it not be obtrusive.

Arms, Paul. 1975.”Computer Technology and Surveillance“. Computers and People 24 (9): 8-11.

These excellent books dive into and elaborate on this crucial matter:
— Lauer, Josh and Kenneth Lipartito, eds. 2021. Surveillance Capitalism in America. University of Pennsylvania Press.
— Scott, Brett. 2022. Cloudmoney: Cash, Cards, Crypto, and the War for Our Wallet. Harper Business
—Zuboff, Shoshana. 2020. Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power. Public Affairs.

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