Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC) has said that the Federal Reserve should generate digital currency.
Giancarlo said this on Yahoo Finance’s program.
According to him, the Federal Reserve’s digital currency, when created, will contend with China’s central bank digital currency (CBDC).
He noted that a digital dollar means an immediate payment, which is what exists now.
He also added that one aspect that would profit from the Digital payment if the United States looks into it, is online shopping.
This is because there will not be any form of mediator payment entailed, unlike the traditional debit and credit cards.
Digital dollar can operate as an equivalent to Bitcoin
Giancarlo noted that Bitcoin and inventions such as Facebook’s Libra Association possess their own value propositions.
In addition, they can also co-exist with any central bank-issued digital currency (CBDC).
He believes that a digital dollar is agnostic to other creations in the crypto area.
Also, the market will be better if there are competitions, so bitcoin can be a match to the digital gold.
Giancarlo also subscribed to the opinion that the U.S regulatory framework should be modernized and upgraded so as to adjust to the modifications that crypto generates to the financial institutions.
According to him, this will bring about improvements since the laws always require to be developed.
Reportedly, Giancarlo is connected with a Digital Dollar project that is backed by a big multinational consulting firm, Accenture, which according to reports, is partnering with Sweden’s central bank on its own digital currency called e-krona.
This program was originally commenced by Giancarlo with the objective of creating a non-profit foundation to research prospects for modifying the dollar into an entirely electronic currency founded on blockchain.