Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
Christopher Giancarlo, the CFTC former head, says that the U.S. should issue the digital dollar to compete with other CBDCs. Giancarlo claims that the CBDC dollar is not a competitor to Bitcoin, Ethereum, TON or Libra.
During Yahoo’s ‘On the Move‘ on Thursday, Christopher Giancarlo said that the Chinese government will create some digital ledger, so the United States must catch up. He claims that the usual physical money we all use will eventually go, being replaced with a mobile wallet. It’s good he didn’t mention the under-skin NFC chips, as this usually causes religious people to fear of Biblical prophesies about accounting for sinners.
Merchants who will participate in the system have to use the central bank’s blockchain to access the network. Giancarlo noticed that the U.S. market is full of services where one can pay online. And both debit and credit cards are boring means of payment, and consumer wants a different experience.
Indeed, credit cards losing popularity among young Americans. Many of them already aware of cryptocurrencies, but not everybody’s ready to hold them longterm.
Digital Dollar is a Different Thing, Not Libra, TON or Bitcoin
Giancarlo believes that, once the U.S. present a digital version of the dollar, it will take a separate role in developing the new economic paradigm. Per the former CFTC chairman, Bitcoin, TON, Libra, and other such coins and systems are the alternatives that have their value proposition. Per the expert, they’re not competitors to each other or digital dollar.
The digital dollar has its natural enemies, in the form of ECB’s possible stablecoin and the Chinese version of that.
While appearing in front of Congress in 2018, he stated that his children’s interest in cryptocurrency made him aware of the cultural aspect of the matter. He understood that cryptocurrencies are not some virtual toy, it’s a necessity. Since 2018, the man holds a nickname ‘crypto dad’, as the community calls him after the revelation.
The Law Must Evolve Quickly
Per Christopher, the U.S. law must quickly evolve, or the laws of code will go straight into the future. It would be bad if the government is trying to regulate it from within the past. He believes that every 90 years, the law must receive major updates regarding the basic articles. Financial law is not an exclusion from a rule.
It is worth noting that the CFTC has already claimed that Bitcoin and Ethereum are commodities. The agency also expands its regulations: for instance, Ethereum-based futures will soon be tradeable on classic U.S. markets.
Christopher Giancarlo was serving as the CFTC chairman from June 16, 2014, till April 2019. Now, he is trying to build bridges between different private crypto companies and institutions. His dream is the Central Bank Digital Currency (CBDC) that American government issue, with a peg to the dollar or even the free cryptocurrencies.