Former CFTC Chairman of the United States: The United States must advocate a CBDC that guarantees high privacy

It is reported that Christopher Giancarlo, the former chairman of the United States Commodity Futures Trading Commission (CFTC), said in an article that the United States “must influence” the development of CBDC to protect “democratic values such as freedom of expression and privacy” and make use of the current technology used by some cryptocurrency protocols.

Interpretation of this information:

In an article, the former chairman of the United States Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, has called for the United States to play an active role in the development of central bank digital currencies (CBDCs). According to Giancarlo, the US “must influence” the direction of CBDCs to protect democratic values like freedom of expression and privacy. Giancarlo is concerned about the growing influence of China in the field of digital currencies, as it is one of the leading countries in the development of its own CBDC, the digital yuan. He fears that if the US does not lead in this field, it will be overtaken by China and other countries.

Giancarlo has highlighted the advantages of CBDCs, such as increased efficiency, transparency, and security in financial transactions. He recognizes that the use of digital currencies has become more common and it is essential for the US to make proper use of the current technology used by some cryptocurrency protocols. He proposes that instead of creating their own CBDC from scratch, the US should use a “digital dollar” that could work in conjunction with existing payment systems.

Giancarlo’s proposal could help the US to maintain its position as a global financial powerhouse and protect its citizens’ privacy rights. The use of a digital dollar could provide greater access to banking services for people on lower incomes and reduce discriminatory practices within the current financial system. At the same time, the use of CBDCs could reduce money laundering and other illegal financial activities, and increase the traceability of illicit transactions.

Overall, the US needs to take an active role in the development of CBDCs to remain competitive in the global financial market. Giancarlo’s proposal emphasizes the need to protect citizens’ privacy rights, promote financial inclusion, and reduce illegal financial activities. As digital currencies become more prevalent, it is essential to make the right choices to ensure that the US remains at the forefront of financial innovation.