The U.S. Digital Dollar concept is being pushed by the former CFTC chairman J. Christopher Giancarlo. Reports indicate that he, Daniel Gorfine and Charles Giancarlo are planning to do this privately. Daniel Gorfine is the former LabCFTC director. Charles Giancarlo is an investor. They have decided to form the Digital Dollar Foundation. It is a non-profit initiative in association with Accenture. They also have plans to work with various professionals to achieve this.
They plan to work towards creating a seamless digital dollar. Money transfers would be extremely easy to initiate. Plans to ensure this has been in the works. Last year Giancarlo had written an opinion piece in the Wall Street Journal on the issue. In a statement, Giancarlo said:
“A digital dollar would help future-proof the greenback and allow individuals and global enterprises to make payments in dollars irrespective of space and time.”
Giancarlo and his team are thinking about converting the dollar into a token. This digital dollar will “meet the demands of the new digital world and a cheaper, faster and more inclusive global financial system,” according to him.
Accenture is backing the initiative with its technical expertise. David Treat who is Accenture’s Global Blockchain Lead said that Accenture will work with everyone to make the project a success. Giancarlo reportedly indicated Accenture’s work with Central Bank Digital Currencies (CBDCs) in different countries. The firm has worked with different central banks. They include the Monetary Authority of Singapore, the Bank of Canada and the European Central Bank. According to sources Giancarlo pointed out that Accenture is heavily involved with ledger technologies.
“As an example, the ability to directly exchange a CBDC for a tokenized security will have profound effects on global capital markets,” said he.
U.S. Digital Dollar Will Follow Processes
The non-profit initiative will follow several processes to kickstart the idea. Sensitization using various events will be the takeoff point. Issues regarding regulations and compliance are also key to Digital Dollar’s success. The needs of the government will also be taken into account. For the project to succeed the U.S. Fed must also support the Digital Dollar. This also changes the concept of cryptocurrencies that have no backing. Giancarlo has also indicated that the token will not replace the current financial system. The token will also work with the Fed’s FedNow system.
Other countries are issuing their own CBDCs. The Chinese are set to live with their digital yuan in a few months. The Marshall Islands have already gone through the first phase testing of theirs. This has raised concerns though that nation-states could use digital currencies to bypass sanctions and evade rules. For now, though, it seems that the Americans are catching up. And we all know that they know how to catch up fast.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.