This past January 22, the former chairman of the United States Commodity Futures Trading Commission (CFTC) – J. Christopher Giancarlo, gave new light to the Digital Dollar initiative. Giancarlo established that the project would pay close attention to the advantages of a US’ central bank digital currency (CBDC). He made these remarks on the Davos press event hosted by The Block.
The former CFTC chairman got the attention of many with his speech, particularly with his huge claim that the project is critical for the fate of the US economy.
Digital Dollar Focuses On the Great Benefits of a US CBDC Framework
The vast difference of a CBDC opposed to the likes of cryptocurrencies (Bitcoin), and stablecoins (Tether) is that the state itself issues a central bank digital currency in the form of fiat money. Additionally, its legal tender status is also government-approved. Certain US governmental parts are already in the process of potentially launching a CBDC in the future.
As we could remember, the leaders of the Digital Dollar initiative have already released some juicy details about the ongoing project on two distinct articles printed by The Wall Street Journal. There isn’t any concrete evidence you can find there that hints their interest towards CBDC. But in these recent days, they seem to be heavily focusing on it.
Going back to the remarks uttered by Giancarlo in the Davos event, he firmly stated that the project would develop a framework that can be used to establish a CBDC dollar later on. He added that the ultimate goal of the project is to enhance financial stability and effectivity of monetary policies.
The Effect of CBDC In The Future
Giancarlo stands by his words that it is critical to implement a digital dollar in the United States despite many central banks all over the world remaining doubtful towards CBDCs. He stressed that other countries are already in the process of developing their very own digital currency and that a US digital dollar could elevate the dollar’s global attractiveness even further. Not only that, he also believes that it could also bring forth a much stable international monetary condition.
The Digital Dollar Project is backed heavily by Accenture, a giant in the global consulting industry. Accenture is allegedly a part of the central bank of Sweden’s ‘e-krona’ – their digital currency. The project promises to explore every crook and cranny to release a successful US CBDC eventually.