At the end of 2019, comments from former CFTC chairman J. Christopher Giancarlo in the Wall Street Journal caused a lot of attention in the community. Giancarlo has publicly proposed the idea of digitizing U.S. fiat currencies in a blockchain-based system, adding that this solution can solve the problem of the depreciation of the dollar.
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In 2020, this digital currency project made significant progress, and Accenture became a partner to promote a digital currency of the United States Central Bank. In fact, there are reports that it will not even wait for a green signal from the US central bank.
Recently, a former CFTC chairman claimed in an interview with Ryan Selkis of Messari that he believes the fact that the agency has proposed plans such as Libra and China's digital yuan (DC / EP) underscores that the U.S. should treat these factors as "good reason" The fact that the digitization of the dollar is a priority.
Giancarlo also suggested that the current financial structure is becoming obsolete, adding that the government needs to propose a structure that can innovate and improve the current system. He says,
"We need to study the architecture of fiat currencies. Many of the solutions being developed today are aimed at the digital infrastructure that our own fiat currencies lack."
Speaking of digital dollar use cases, Giancarlo briefly talked about faster remittances at a faster exchange rate worldwide, while also providing banking services to individuals and communities without bank accounts, as claimed by the Libra white paper Things to do are very similar.
From previous reports, it is well known that the Digital Dollar Plan is not a derivative of fiat currency. Digital dollars will be fully supported by the U.S. dollar and will be considered legal tender. However, this digital dollar must be based on a blockchain system.
The Digital Dollar initiative has recently received a lot of attention after House Democrats drafted bills called the Accountability to Workers and Families Act and the Financial Protection and Assistance Act to US Consumers, States, Businesses, and Vulnerable Populations Both proposals mention the use of digital dollar projects to facilitate payments to the public.
To many disappointments, however, the revised draft bill does not mention digital dollars in the direct stimulus payments section.
It can therefore be speculated that Democrats in the House of Representatives abandoned this idea because digital dollars need to be based on a decentralized ledger, and simply noting the previous bill completely omitted any mention of the use of decentralized systems or digital asset systems.