Influence of the United States in the Development of CBDC

03/14/2023 06:38 • Blockchain Buzz • 159 views

It is reported that Christopher Giancarlo, the former chairman of the United States Commodity Futures Trading Commission (CFTC), said in an article that the United States “must influence” the development of CBDC to protect “democratic values such as freedom of expression and privacy” and make use of the current technology used by some cryptocurrency protocols.

Former CFTC Chairman of the United States: The United States must advocate a CBDC that guarantees high privacy

Analysis based on this information:

In a recent article, Christopher Giancarlo, the former chairman of the United States Commodity Futures Trading Commission (CFTC), emphasized the importance of the United States’ influence in the development of Central Bank Digital Currency (CBDC). Giancarlo argued that the development of CBDC should prioritize democratic values such as freedom of expression and privacy by avoiding centralization and controlling the concentration of power in government hands.

The global currency landscape is rapidly changing, and new technologies, such as blockchain, are facilitating the rise of digital currencies like Bitcoin and Ethereum. As a result, governments around the world have started to recognize the importance of creating their digital currencies to keep up with the changing times. The United States, being one of the world’s leading economic powers, cannot remain isolated from this technological revolution.

Giancarlo argues that the United States needs to lead the discussion on how CBDCs should operate and develop, rather than just competing on who can create the most efficient and fastest digital currency. For example, since currently, many cryptocurrencies use decentralized protocols, the ideal CBDC development should not be centralized to avoid being vulnerable to government surveillance and censorship.

Furthermore, the former chairman suggests that the U.S. should prioritize existing cryptocurrency protocols as the blueprint for the development of CBDC rather than reinventing the entire system. This way, the U.S. can build on the foundation that has been created over the years and leverage the current technology to make the CBDC more sustainable.

Giancarlo’s article echoes sentiments that have been expressed by other economic and political leaders. The development of CBDCs must prioritize the decentralization of power and safeguard personal privacy and freedom of speech. The technology must be used to benefit the public, not to create automated systems that favor a few individuals.

In conclusion, the United States should prioritize influencing CBDCs’ development to ensure that democratic values such as freedom of expression and privacy are safeguarded. The country can achieve this by relying on existing cryptocurrency protocols to make CBDCs more sustainable and not concentrating power on a centralized infrastructure.

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Influence of the United States in the Development of CBDC

Former CFTC Chairman of the United States: The United States must advocate a CBDC that guarantees high privacy

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