US Needs Central Bank Digital Currency Says Chris Giancarlo

US Needs Central Bank Digital Currency Says Chris Giancarlo

An American attorney and former business executive, Chris Giancarlo, the former Chairman of the US Commodity Futures Trading Commission. One of the few high-profile officials who served under the administrations of both Obama and Trump.

As the former Chairman of Commodity Futures Trading Commission, Giancarlo’s last venture was a digital dollar project. He is leading the foundation towards the project carrying out five CBDC pilot programs. The project’s main goal is generating data that will inform US policymakers about how to create a domestic digital currency.

According to Giancarlo, there are 8 reasons to create a Central Bank Digital Currency. He says that the US needs CBDC for the data capture, Financial market modernization, Financial inclusion, Benefits distribution precision, the rise of stablecoins, Geopolitical concerns, National security, and the value system of money.

Significantly, Giancarlo opened up that the race for CBDCs is about more than just preserving current US values; it is also about unlocking new forms of smart contract-based value for a larger population. Besides, he shares the potential use cases for a digital dollar.

“The concept of digital currency, whether sovereign or non-sovereign, linked to smart contracts, allows money to solve the age-old problem of being able to transfer it easily as you send it. As a result of traveling around the world. Not only should you send a text message, but you should also send it on time.”

Consequently, Giancarlo also expresses that smart contract is such a powerful construction. Earlier money was a temporary entity but when it comes to smart contracts, it is a long-term entity. He also uses an example, saying that if he wants to leave money to one of his grandchildren in the future, there is no need for intermediaries.

More so, one can programme programmable digital currency to move around the world not only in space, but also in time. Additionally, Giancarlo describes how both regulators and innovators would reach a compromise.

“Political power is going to move into space just like they’ve moved in every new frontier and we have to make sure that the regulations that come out are well suited to the purpose and not deteriorate it.”

Finally, this work is part of an effort to ensure that the United States maintains technological dominance.

“You can’t stop the march of technology, and if you try, you’ll become a backwater. We in the United States are always open to new ideas. In some ways, it is prudent, and in some ways, it corresponds with our society’s expectation that investors be protected, as well as the role of the government. And this is one I’m very excited to be a part of.”

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