- Former CFTC Official, Chris Giancarlo has given out a statement that an analog reserve currency underserves the digital 21st century.
- This project will develop a framework for possible, practical steps that can be undertaken to establish a dollar CBDC.
- Chris Giancarlo stated that Accenture holds a record of innovative collaborations with the central banks.
Chris Giancarlo has given out a statement that an analog reserve currency underserves the digital 21st century. He had also added that they are launching the Digital Dollar Project to catalyze a digital, tokenized U.S. currency, which would coexist with other Federal Reserve liabilities.
As stated, the purpose of this Project is basically to encourage research and public discussion on the potential advantages of a digital dollar. This project will also develop a framework for possible, practical steps that can be undertaken to establish a dollar CBDC.
To help launch the Project, Chris, and Charles Giancarlo, along with Daniel Gorfine, are forming a Digital Dollar Foundation. It is a not-for-profit organization and has engaged Accenture as lead architect and technology innovation partner.
Chris Giancarlo stated that Accenture holds a record of innovative collaborations with the central banks. It also includes work with the Bank of Canada, the Monetary Authority of Singapore, with the most recent being the intent of Sweden’s Riksbank.
The principles which have laid would also be tested against a wide range of stakeholder needs as well as the use case requirements to make sure that design inputs for a digital dollar optimize its value.
David Treat, the senior managing director as well as the global Blockchain lead at Accenture, also commented on it.
He said that Accenture is pleased to partner with Digital Dollar Foundation and would help advance the Project by helping in bringing together an expert multi-stakeholder community to take maximum advantage of the real-world experience.
He also added that Central Bank Digital Currency is a key enabler for the purpose of modernizing financial systems. It will also drive material economic and social improvements along with forming the basis for a wave of innovation.
A dollar CBDC would do the work of representing the third format of currency. Similar to the paper currency, it will be backed by the Fed. This marks a key distinction with tokenizing bank money, which considered to be a liability of the issuing commercial bank.
CBDC aims to be portable, in a digital format and should be able to send as quickly as a text. Ever since the proliferation of banknotes, there has been minimal innovation in central bank money.
The establishment of a digital dollar would offer new scope and possibilities for the secure and instantaneous settlement in dollars through consumer banks and trusted payment intermediaries. Along with it, it will also have to preserve, as well as offer full integration with the existing financial system.
Additionally, it will also serve as an effective digital settlement medium nationally and internationally to make the dollar a better currency.
The Project would firstly consider initial designs and proposals for a dollar CBDC. It will also enlist the participation of individual economists, business leaders, technologists, innovators, and ethicists.
The Project further will also work to develop a framework to test and learn about digital dollar capabilities as well as implementation practicalities.
This pace and direction of the Project would be assisted by a steering body that will propose alongside the framework. The Project aims to share its findings with key stakeholders and then begin consideration of possible future work.