The technology threatening the hidden financing of power
– Technology removes political discretion
– Public money becomes fully traceable
– Power loses its traditional financial base
The End of Political Financing
Blockchain and Smart Contracts vs. Abuse of the Voter
By Dr. Nelson Jorge Mosco Castellano
Two technological tools, whose use is inevitable in the AI era, eliminate all privileged political deviation or prebendary arrangements.
Blockchain is a decentralized, shared, and immutable digital ledger that stores information securely across a network of computers (nodes). It functions like an accounting book where data, organized in “blocks” linked chronologically, cannot be altered or deleted once recorded, guaranteeing transparency and security without intermediaries.
Smart Contracts are computer programs stored on a blockchain that automatically execute agreements when predefined conditions are met, eliminating intermediaries.
They offer security, immutability, and speed by operating under the logic “if A happens, then B is executed,” ensuring transparency and optimizing transaction costs in the administration of public companies and state services.
Public Tenders and Infrastructure: The End of “Overpricing”
Public tenders are opaque processes with conditions that are sometimes tailored to a specific bidder or simply follow patterns of ideological-political interest.
With smart contracts, the tender is programmed on a blockchain that previously evaluates the consistency between the object, the cost, and the public interest.
Only companies that meet the technical requirements (automatically verified) can participate.
The contract releases payments automatically only when it is digitally verified that the work has progressed (for example, through IoT sensors or external digital certification).
This eliminates payments for unfinished work or the diversion of funds (political-private collusion).
Public Banking and Subsidies: Total Traceability
Public banking is often a source of “soft” loans for friends of power or subsidies that get lost along the way to securing voters.
The State can issue social aid in the form of programmable tokens. If the subsidy is for “education,” the token code prevents it from being spent on anything else.
Real-time auditing: any citizen (or oversight body) could see on the network (without violating identity privacy) exactly how money flows from the treasury to the final beneficiary, eliminating intermediaries that retain illegal commissions.
Public Enterprises: Auditing of Inputs and Logistics
State-owned companies (energy, water, transport, education, security) often have capital leaks in the purchase of inputs.
With immutable records, every purchase, from a screw to a boiler or generator, is recorded in a chain that cannot be erased or modified by any official.
Suppliers will have a verifiable digital reputation on blockchain.
If a company breaches a contract with the State, it is automatically flagged throughout the system, preventing it from contracting again.
Reduction of Political “Size”
The most disruptive change is that blockchain replaces the need to trust a person with trust in mathematics.
It eliminates political trust-based positions: much of the “internal auditing” and “management control” departments in public companies become unnecessary because control is intrinsic to the system and NO ONE can alter it.
Decisions of public companies could be consulted with users through secure blockchain voting systems, returning control of the “public” company to the citizen and taking it away from the ruling party.
The core of political resistance to technology will not be able to compete with process optimization, dismantling the traditional political financing model.
The “technological revolution” will act as a financial and operational corset that the political system will try to avoid, but that economic reality will end up imposing through technical bankruptcy.
The End of the “Toll” in Public Works
Historically, public works have been the political “cash box.” Discretion in choosing suppliers and overpricing feed campaigns.
In addition, obsolete quasi-religious tendencies attempt to nationalize private actions to control private profit.
By using blockchain, the contract self-executes. If a politician wants to divert funds or certify a non-existent work, the system simply does not release payment because sensors (IoT) or satellite images do not confirm progress (compliance).
Discretion is eliminated: technology allows tenders to become algorithmic blind auctions.
The politician loses the “finger power” to choose the friendly company, and therefore loses the prebend (the “kickback” for the campaign).
Public Institutions: From Employment Agencies to Automated Systems
Public institutions have traditionally been refuges for militants and political favors.
The pressure to reduce the comparatively unbearable fiscal deficit will make it impossible to justify payrolls of thousands of people when network management software or autonomous systems can do the work with 5% of the staff.
Technology allows the citizen to see the balance of the public company minute by minute.
Hiding “losses” caused by inefficiency or corruption becomes technically much more difficult.
Education and Health: The End of Territorial Control
Regimented education and health allow politicians to control large groups of public employees (unions) and suppliers of inputs (medications, food services, construction) and to direct ideologically the education they provide.
If education becomes hybrid and personalized for each student, through global platforms, the power of teachers’ unions (as a political arm) disappears.
If the State delivers the budget directly to the citizen through a “health token” or “education token,” the politician loses control over the flow of money.
The resource goes to the user, not to the structure managed by the politician.
The “Train Collision”: Technology vs. Political Survival
The power of technological disruption destroys the political cash box of public action.
It is blockchain and IoT that put an end to the spurious financing of political campaigns.
Clientelism ends with automation and AI, which make it impossible to pay favors with positions.
The opacity of the public budget ends with open data and money traceable down to the cent (CBDC).
CBDC (Central Bank Digital Currency) is the electronic version of a country’s fiat currency, issued, regulated, and backed directly by its central bank.
Unlike decentralized cryptocurrencies, CBDCs are sovereign money designed for fast, secure, and efficient digital payments, functioning as digital cash.
Union leadership loses its power: digitalized services prevent claims against technologically executed services designed by AI.
The Exit of the Political System: Where Will They Flee?
Given that they will not be able to avoid losing these privileges, the political system is likely to try:
Over-regulating technology: attempting to impose legal “brakes” on blockchain or AI to maintain spaces of opacity.
New digital taxes: creating taxes on algorithms or robots to generate new “cash boxes” that compensate for the loss of traditional public works.
The big question is: will ordinary citizens be able to impose the adoption of these transparency technologies before the political class manages to “domesticate” them for its own benefit?
Let us see how citizens will be decisive in these changes, as they will no longer be able to bear financing the deviations of the public system.
Read more: https://perspectivaliberal.com/global-order-geopolitics