May 19, 2024

The government is planning “open banking” – bank customers in Canada won't have to fear absolute surveillance in their daily lives

A surveillance state like China, in which citizens face severe consequences for even minor everyday crimes, seems unimaginable in the West. A Facebook registration Now Canada says it wants to introduce a social credit system that would give politicians “full control over our finances.” On that day too Tiktok Accusations are being spread. Do these programs really exist?

Assessment

There is no evidence to support the claim that the Canadian government wants to link bank accounts to the social credit system. A system called “Open Banking” is planned to be introduced. However, this is to give customers the opportunity to transmit data to selected third-party providers on a voluntary basis.

facts

The Facebook post did not cite any sources or evidence for allegations that Canada wants to link bank accounts to social credit scores. A TikTok video makes almost identical claims An article Austrian blog tkp.at has spread false and misleading information many times in the past.

A social credit system is already in use in China

The term social credit system is primarily associated with China. The Kepler's Business Dictionary It describes it as an “electronic monitoring, registration and evaluation system” in which citizens are assessed with a score based on their living conditions, social behavior or economic activities.

The Deutschlandfunk In 2017 Rongcheng announced a pilot phase in the city. Anyone who behaves according to the example of the Chinese government should be rewarded for their behavior. However, anyone who doesn't meet expectations, for example those who don't repay loans on time, must fear consequences such as being excluded from flights and trains.

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“Open banking” is not without risks

However, “open banking” has nothing to do with the social credit system based on the Chinese model. The concept provides an opportunity for customers to send certain data to third-party providers such as financial applications, identification or payment services, reports. Television station CTV. However, this always requires the consent of the account holder. It is designed to avoid customers accessing their entire online banking system.

The Federal Financial Supervisory Authority (BaFin) sees opportunities for innovation in “open banking” but also recognizes risks. In addition to security and fraud risks, there is concern that “customers will be excluded from access to financial products if they are unwilling or unable to allow data access by third parties.” BaFin writes on your website.

According to BaFin, how “open banking” can reduce risks depends on the legal framework. The Canadian government doesn't want a draft until April with the next budget to publish. However, there is no evidence that the introduction of a social credit system was part of this.

(As of: March 27, 2024)