Boosting the attractiveness of the US dollar! Former CFTC Chairman and Accenture jointly advocate for a central bank digital dollar.
China's loud call for the launch of the central bank digital currency (DC/EP) this year has sparked international interest in central bank digital currencies (CBDC). Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission (CFTC), and consulting firm Accenture have announced the establishment of the "Digital Dollar Project" to ensure the dollar's status internationally.
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Advancing Digital Dollar by Private Initiative
Christopher Giancarlo, known as "Crypto Dad" within the U.S. crypto community for his crypto-friendly stance, announced on January 16 this year the initiation of the Digital Dollar Project with Accenture after stepping down from his role at the CFTC in 2019. Giancarlo stated that
tokenized dollars would serve as a settlement medium, coexisting with other Fed debt, meeting the demands of a new digital world and a faster, cheaper, and more inclusive financial system.
This project is independent of the government and aims to facilitate research and discussion on the digital dollar, providing insights to public sectors towards establishing a central bank digital currency.
As described on its official website, potential use cases for the digital dollar include retail payments, large-scale interbank transactions, and international cross-border payments.
Digital Pressure from China
Despite the U.S. dollar's dominant position in global forex reserves, the Digital Dollar Project also points out that factors such as incentives, geopolitical pressures, and generational preferences are affecting the dollar's international payment medium status amidst concerns of over-reliance on the dollar and shrinking international liquidity for the dollar.
The project specifically mentions China's promotion of the digital yuan to further internationalize the renminbi, posing a threat to the dollar's primary status.
They believe that central banks outside the U.S. are adopting digital currencies to reduce reliance on the dollar in international transactions, making the adoption of a digital dollar crucial in revitalizing the dollar's attractiveness.
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- Almost There! China's Central Bank Digital Currency has Completed "Top-Level Design," Will Not Allow Exchange with Virtual Currencies
- IMF Predicts Central Banks of Various Countries Will Issue Central Bank Digital Currencies (CBDCs)
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