The former chairman of the Commodities Futures Trading Commission (CFTC) J. Christopher Giancarlo has explained that part of his vision is the digitization of the United States dollar. Giancarlo spoke during the ongoing World Economic Forum (WEF) at Davos, Switzerland. According to his, the dollar with its impact and use as a stabilizing currency in the world market is underutilized in its current analog usage.
“We believe that the dollar usage in the global economy is underserved by serving as a continual analog instrument in a digital world,” he said. “We’re going to think through how to create a digital dollar that serves well into this coming digital century.”
An interesting angle that Giancarlo hopes to see is the integration of known fiat currencies such as the USD with other known cryptocurrencies such as Bitcoin and Ethereum. This he believes would be the basis of international government-backed virtual currency system that may result in greater transparency but less privacy. However, he believes that with the versatility of blockchain, privacy issues can still be surmounted.
He used the Bank of China, the US Treasury and Libra as examples and inferred that with dominance of cryptocurrencies from countries and entities such as Facebook, the government would want to know the source of every transaction. They also would be interested in what financial transactions opposition parties and other opponents of regimes are making.
However, he still concluded that blockchain would secure people’s privacy and not the other round. According to him:
“We think in a digital dollar people could see their information being more secure, not less.”