Former CFTC Chairman Published Whitepaper For Digital Dollar

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • Today, the Digital Dollar Project, an association of Digital Dollar Foundation and Accenture, has published its first whitepaper.
  • However, the digital dollar foundation was founded by Chris Giancarlo, a former CFTC commissioner and backed by 30 robust advisory officials.
  • Further, the proposed whitepaper says that the digital dollar would be designed on two-tiered distribution architecture.

Today, the Digital Dollar Project, an association of Digital Dollar Foundation and Accenture, has published its first whitepaper. It underlines the launch of central bank digital currency (CBDC) through public discussions. However, the digital dollar foundation was founded by Chris Giancarlo, a former CFTC commissioner and backed by 30 robust advisory officials.

Project Aims to Educate Policymakers

The project aims to educate policymakers and offer a national CBDC strategy in the country.

As per the whitepaper, the dollar tokenization will offer the U.S. to spot its position as the world’s reserve currency by extending the capabilities of the U.S. dollar.

Previously, Henry Paulson, the former U.S. Treasury Secretary, doesn’t find the renminbi digitization suddenly challenging the dollar. Though, he does not believe that dollar’s monopoly will decline.

Moreover, the Digital Dollar whitepaper indicates the benefits of the “champion model.” During this phase, the project wants to discover the digital dollar for both retail and institutional transactions. At the same time, privacy design is the chief component for both retail CBDC and any private stablecoin competitors.

Leveraging the Digital Dollar in Crisis Relief

The whitepaper also summarizes for leveraging the digital dollar in crisis relief. Several U.S. citizens have to wait for the traditional stimulus checks to arrive if a system created on the digital dollar would offer the Americans a near and instant relief payment.

Further, the proposed whitepaper says that the digital dollar would be designed on two-tiered distribution architecture. In this, the commercial banks and other financial firms will act as intermediates between the U.S. Federal Reserve and the public that uses tokenized dollar.

As soon as the new dollar begins available in commercial banks, other firms could quickly adapt it through the banks.

Furthermore, when it comes to the privacy of the proposed digital dollar, we suggest that the government should follow the same protocol as cash. It means tokenized dollars should maintain privacy thresholds below $10,000, just like paper dollars.

Yet, privacy is the key concern for the citizens who have a threat of government surveillance of money. For now, Bitcoin and privacy-coins are the best modes to send digital disbursements.

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