The Digital Dollar Can Save The Economy: Now It’s Time
Now there are favorable conditions for the implementation of the digital dollar project. This was stated with full confidence by the
J. Christopher Giancarlo, former chairman of the CFTC. In his speech at the “Consensus-2020” conference, he focused the audience on the benefits of the digital dollar for American society and the world at large.
Giancarlo is confident that now the financial infrastructure needs radical changes more than ever. The digital dollar project does not imply a complete replacement of the traditional financial system; it cannot become a complete alternative to the infrastructure that has been created for hundreds of years. The key objective of the digital dollar is to strengthen the existing financial system.
According to Giancarlo, the spread of coronavirus demonstrated the weakness of the traditional financial system and further pushed for a search for solutions to level these problems. Today, he sharply raised the question of how to provide financial assistance to those citizens who do not have bank accounts.
“The crisis revealed weaknesses and limitations that occur in the existing financial infrastructure. We already have a ready-made solution, it remains only to implement it.”
Giancarlo believes that using the digital dollar, you can solve the problems that already exist in the financial system.
Data privacy is above all
The issue of ensuring data confidentiality remains one of the key issues for the developers of the digital dollar project. Giancarlo is convinced that if the moment is correctly and fully worked out, a digital dollar will be more attractive to users. Here the advantages play an important role, and in this matter, the digital dollar can overtake fiat funds.
“The digital dollar must comply with data privacy principles. It is important,” – noted Giancarlo.
David Trit, director of the Digital Dollar project, believes that today there is a sufficient base of technological solutions that will allow the digital dollar project to be implemented with a high level of confidentiality of user data.
Digital dollar and Bitcoin at the same time?
Giancarlo in his speech also raised the issue of digital dollar collaboration with private platforms such as XRP or Stellar. He reported:
“So far we are not considering the idea of partnership with commercial entities. This will be possible if the need for this cooperation is determined at the state level.”
Giancarlo also said that the digital dollar project is not designed to support the Bitcoin exchange rate, as many believe. The digital dollar has completely different tasks. Nevertheless, Giancarlo is very friendly to Bitcoin and sees great potential in cryptocurrency.