The world is watching a financial evolution that should usher in a new era of government-backed financial systems built on the backbone of new technology. The advent of cryptocurrencies like Bitcoin it is a clear indication of the evolution of the monetary situation.
While many governments have sat on the fence over the years, especially when it comes to the legality and power of digital currencies, many high-ranking people are now speaking out in support of the new system, although there have been regulatory framework issues.
According to Christopher Giancarlo, the United States government should be in the process of designing a viable digital dollar. Giancarlo is the former CFTC president, something that gives his opinion some heavyweights. Giancarlo is the founder of a non-profit organization called the Digital Dollar Foundation. The nonprofit has partnered with Accenture, a consulting firm, to publish a document technician who drives the argument for the digital dollar.
"What is money?"
According to the white paper, global society is currently in the midst of a conversation, something that happens every few generations. Basically, the main topic of this conversation is based on a new perspective that seeks to redefine money. Admittedly, the rise of cryptos like Bitcoin has helped fuel this conversation.
Arguably, the new crypto technology has proven to be very beneficial, especially in today's times when the world is dealing with a pandemic and humanitarian situations in various parts of the world. People can get help quickly and conveniently through the use of digital currencies. The fact is that the current financial system (use of banks) does not work with those present.
Loss of influence
The United States has long been a world leader in observing widely accepted financial values. Pointing to this fact, the white paper argues that if the United States does not make efforts to design a suitable digital dollar to maintain this status, it risks losing its influence, and this could erode these values.
This takes into account that some countries like China do not necessarily share the same values with the United States. Some of these countries already They are in the process of creating their own digital currencies, and that challenges the United States as digital currencies are known to be difficult to control.
The question of privacy
However, even when the United States is forced to create its digital dollar, it is not lost on anyone that a viable and widely accepted currency of such design must address the issue of privacy. On the one hand, it is the search for better privacy that has fueled the rise of crypto.
A digital dollar should embrace this virtue in a way that is currently acceptable. By the way, Giacarlo's white paper is more of a philosophical argument, though it touches on some of the technical aspects of design, especially when it comes to using blockchain technology.