Christopher Giancarlo, former president of the Commodity Futures Trading Commission (CFTC) believes it is time for the Federal Reserve to issue a fully digital currency on February. 21.
Giancarlo told Yahoo Finance’s On the Move program that the Federal Reserve must issue a digital currency to compete with China’s central bank digital currency (CBDC).
The former CFTC president stressed that online shopping would benefit from the US offering a digital payment option because there are no brokerage fees as with traditional bank cards and credit cards. Giancarlo also added:
“If we are talking about a digital dollar that we are talking about in the virtual world, to have the same directness of payment as in the analogue human world.”
Giancarlo believed that a digital dollar is agnostic for other initiatives in the cryptocurrency space. He said that Bitcoin and innovations such as the Facebook Scale have their own “value propositions” and can co-exist with a central bank issued digital currency (CBDC). He stated that:
“I think the market is always better if there is a lot of competition … An instrument such as Bitcoin can be the equivalent of the digital dollar, perhaps equivalent to the digital gold.”
Giancarlo has also argued that the US regulatory framework needs updates to adapt to the changes that cryptocurrencies entail for financial institutions. He says:
“Things are going to change drastically and our laws have to evolve as they did in the 90 years, now they have to evolve again.”
As reported, Giancarlo is involved in a Digital Dollar project supported by a global consultancy giant Accenture, which is reportedly working with the central bank of Sweden in its own digital currency known as the e-crown. This project was initially started by Giancarlo with the aim of establishing a non-profit foundation to study prospects for converting the dollar into a “fully electronic currency based on blockchain.”
Earlier this month reported that US Congressman Bill Foster (D-IL) has asked Federal Reserve Chairman Jerome H. Powell about the US CBDC progress during a monetary policy hearing.
He specifically mentioned China’s plan to implement the digital Yuan in the countries involved in its Belt and Road initiative and that it could jeopardize the global reserve currency status of the dollar.