J. Christopher Giancarlo, former CFTC Chairman, Daniel Gorfine, former LabCFTC Director, and Charles Giancarlo, investor, are working together in forming the Digital dollar Foundation, operating with Accenture, a multinational professional services company in strategy, consulting, digital, technology and operations, to design a U.S. central bank digital currency (CBDC).
The organization aimed at convening all related things and parties to evaluate these designs and create a framework for testing the new system. They have the intention the making dollar transactions seamless. The former CFTC officials called for using a blockchain platform to support a digital dollar and a non-government group would run the project. As per his thinking, a digital dollar, which would be a tokenized form of the U.S. currency and act as a digital settlement medium, would allow individuals and global enterprises to make payments in dollars irrespective of space and time.
Accenture is with them to work as chief architect and technology partner. With an eye to driving the project, Accenture having experience in the field will combine both real-world experience and new technological abilities.
Backing the dollar
The foundation will try different approaches to creating digital dollar. Core governmental interests will also be deemed. The primary attempt will culminate in a set of principles comparing to stakeholder needs and the practical requirements for a CBDC. Reportedly, these principles will be evaluated for U.S. legal compliance. The digital dollar must be backed by the U.S. central bank. And it is blatant that Fed governors and Chairman Jerome Powell are conscious of the technology and evaluating the potential use of blockchain to support the system. In a question whether using a blockchain-based CBDC worth the effort, Powell responded that while the Fed is looking into the matter, he doesn’t yet see if there will be any momentous benefit to pursuing monetary policy with a CBDC. But a number of issues must be worked out before a U.S. CBDC can be issued. The target is in the ultimate, a digital dollar would need to be issued by the Fed.
Fulfillment of global demand
Reportedly, China may soon be ready to launch its own central bank digital currency to take on the U.S. dollar’s dominance of the global financial system. Arguably, a digital renminbi fundamental’s will not change just because it is placed on a blockchain. Therefore, a Chinese CBDC poses no threat to the U.S. dollar. Actually there are other nations who are trying to issue their own CBDCs. A possibility goes that nations like North Korea could use a digital renminbi to bypass sanctions while hostile actors target the aging infrastructure supporting remittances today. Private groups are also trying to walk along the way and you can take Libra project as an example. So, the new digital dollar is expected to reduce costs, foster security, improve transparency as an effective digital settlement medium.