Golden financial blockchain on February 26 Christopher Giancarlo, former chairman of the US Commodity Futures Trading Commission (CFTC), officially released the official website of “digital dollar” on his personal twitter. Let’s see what the rudiment of “digital dollar” looks like from the information disclosed on this website.
Digital dollar program
The digital dollar program is a cooperative program between Accenture and the digital dollar foundation, which aims to promote the exploration of the central bank’s digital currency (CBDC) in the United States. The program encourages research and public discussion on the potential advantages of digital dollars, and “calls on thought leaders and actors in the private sector, and proposes potential models for deploying digital dollars to the public sector.”. Not only that, the digital dollar program will establish a framework for possible practical steps to establish a central bank digital currency for the dollar.
Announcement of digital dollar plan
Christopher Giancarlo said:
“In the digital age of the 21st century, the reserve currency service of the United States is insufficient. Digital dollars will help adapt the dollar to future developments and allow individuals and global businesses to pay in dollars without time and space constraints. The digital dollar program currently being launched will catalyze a digital and token US currency, which will coexist with other Federal Reserve debts, and become a cheaper, faster and more inclusive settlement medium for the global financial system in the digital world. “
What problems should digital dollar solve?
In fact, for a long time in the past, cross-border remittance technology has hardly been greatly upgraded and optimized, but people’s demand for money with more functions to support faster, more certain and easier access is growing. Therefore, central banks around the world have begun to pay attention to this problem, and more than two thirds of central banks have begun to study new payment applications.
Some central banks are becoming potential innovators of new technologies, such as exploring how “token” can provide the possibility of representing value and transferring value. For example, the Central Bank of Sweden has started to pilot e-krona, China is exploring the central bank’s digital currency (CBD), and the European Central Bank has been actively studying various functions of digital currency. Not only that, technology giants and other financial institutions are also seeking innovation. For example, Facebook launched Libra, a digital currency. Goldman Sachs Group, JPMorgan Chase, Mitsubishi UFJ Financial Group and Wal mart are trying to develop stable currencies.
What should the digital dollar plan do?
Digital dollar focuses on three tasks: encouraging people to study and discuss the potential advantages of digital currency, convening technical leaders and executives in the private sector, and proposing feasible solutions to support the potential model of the public sector.
The plan will also develop a framework that, while seriously considering the government’s core interests, will develop key guidelines based on the support of existing Federal Reserve related programs. Finally, the digital dollar program will develop a complete set of central bank digital currency solutions to support the effectiveness of monetary policy and financial stability of the United States, and integrate with the existing financial infrastructure.
Another goal of the digital dollar program is to promote the Federal Reserve System to issue digital dollars, and make digital dollars enjoy all the reputation and credibility of the U.S. government, and become the third central bank currency that can coexist with cash and reserves. If the Federal Reserve finally issues digital dollars, it means that the scope of payment and use of dollars, as well as retail, wholesale and international payment use cases will be further expanded,
Digital dollar will also provide infrastructure services for digital financial market and become a new medium of exchange. So that people can be like text messages, not limited by time and space for capital settlement, enhance people’s confidence in digital payment transactions.
Ten principles of digital dollar
“Digital dollar plan” will follow ten key principles:
1. To ensure that the real and inclusive interests of digital dollar become the liabilities of the Federal Reserve and constitute an integral part of the monetary base.
2. Ensure the effectiveness of monetary policy and financial stability.
3. Ensure payment privacy and security.
4. Ensure compliance with existing KYC / AML requirements and allocate between regulated payment intermediaries and banks based on a two tier banking system.
5. Ensure that users who cannot use digital payment have special support.
6. Ensure transparency of digital payments.
7. Ensure connectivity with existing core banking and payment functions, hosting solutions and e-wallets, and seamless integration with financial infrastructure.
8. Ensure that the technology can support the functions required by digital currency.
9. Ensure collaboration between public and private stakeholders.
10. Ensure development and test flexibility.
Head of digital dollar program
1. Christopher Giancarlo: former chairman of the US Commodity Futures Trading Commission, member of the Financial Stability Oversight Committee (FSOC), Executive Committee of the president’s financial markets working group and the international organization of Securities Commissions (IOSCO), senior legal adviser of Willkie Farr & Gallagher law firm, member of the Advisory Committee of the digital chamber of Commerce, and independent director of the US financial exchange.
2. Charles h. Giancarlo: entrepreneur, investor and executive, currently CEO of pure storage.
3. Daniel gorfin, founder and CEO of Gattaca horizons LLC, was the first chief Innovation Officer of the CFTC.
4. Dave treat: Senior Vice President of Accenture’s blockchain business, CO head of Accenture’s blockchain business and head of Accenture’s New York financial technology innovation laboratory.
The digital dollar foundation and Accenture will consider the preliminary design and recommendations for the first phase of digital dollar and create a governing body in collaboration with economists, technicians, lawyers, academics, consumer rights groups, human rights experts and ethicists.
Editor in charge: CT