Former CFTC Chief Says U.S. Should Create an Independent Digital Dollar

Neil Dennis

A former head of one the top U.S. market regulatory bodies believes the government must create a digital dollar to help spread monetary risk away from central banks.

Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission, wrote in an opinion piece for the Wall Street Journal that the dollar could begin to lose its status as the global currency if other countries roll out their own digital currencies - comparing the dollar's potential decline to sterling's loss of international clout after the Second World War. He said:

Significant actors, including central banks and social media platforms, may launch new currencies in the next few years. As their networks grow, they could eventually erode the dollar’s status as the most popular currency for international exchange.

Blockchain-Based Dollar

Giancarlo said that the government should sanction a blockchain-based digital dollar, created and maintained by an independent, non-governmental group to be administered by banks and "other trusted payment organizations". He added:

Cash brought into the system would be exchanged for digital US dollars on a blockchain, with the cash lodged in special escrow accounts maintained by the Federal Reserve.

Featured Image Credit: Photo via Pixabay.com