There have been numerous discussions regarding central bank digital currencies. China appears to be the only nation ready to really go the distance.
However, in the United States, similar rumblings have become apparent. Former CFTC chair Chris Giancarlo is creating the Digital Dollar Foundation.
Central Bank Digital Currencies are a Hype
Ever since bitcoin became a global success that just won’t go away, banks have changed their tune. Instead of opposing this technology, they now prepare to embrace it. Some institutions may even begin providing crypto custody solutions as early as late 2020.
Additionally, central banks see merit in their own digital currency. These projects are referred to as central bank digital currencies. In essence, they represent a digital equivalent of a US Dollar, Euro, Pound Sterling, et cetera. The entire digital supply is backed by the current circulation of physical money.
The latest project to focus on this aspect is the Digital Dollar Foundation. Created by former CFTC chair Chris Giancarlo and Accenture, it will explore the creation of a digital dollar. This non-profit will put in the necessary research and development to determine the viability of this concept.
Entering the 21st Century
Forming this nonprofit is only the first step along a lengthy path. Creating a digital dollar sounds easy on paper, but the reality is often very different. Giancarlo is convinced how a digital dollar will future-proof the greenback. Moreover, it would allow for cross-border payments in a more streamlined fashion.
For now, the focus lies on sparking discussions on central bank digital currencies. By engaging with the public, the Digital Dollar Foundation makes its intentions clear. By collecting feedback, the nonprofit can work on building the proper framework.
Accenture will prove a valuable partner. The agency has experience in the world of central bank digital currencies. Its collaboration with authorities across Canada, Singapore, and Riksbank shows they are on the right track.
Despite positive intentions, there is still a lot of red tape. Regulatory concerns regarding a digital dollar cannot be ignored. There are also operational questions, and potential legal consequences.