The Digital Dollar Foundation research center, led by former CFTC Chairman Christopher Giancarlo, has published a digital dollar White paper.
In addition to Christopher Giancarlo, the founders of the Digital Dollar Foundation include Daniel Gorfine, former head of the financial technology division of the commodity futures trading Commission (CFTC), and Accenture, an international consulting company. The project aims to accelerate the creation of state-owned cryptocurrencies from Central banks, and the release of technical documentation describing the main advantages of the "digitized" dollar was a key step in this direction.
According to the published document, the digital dollar will be used along with traditional payment mechanisms and automated payment systems, as well as for making money transfers between the United States and Mexico. In the future, it is planned to test these scenarios of using the digital dollar with the assistance of government agencies to test the value of hypotheses.
The project will meet the requirements of American regulators, and is not aimed at radically changing the current monetary policy of the United States. The digital dollar will flow from the US Federal reserve (FRS) to financial institutions, after which this cryptocurrency will be available to the public. This means that the digital asset will be distributed through the existing two-tier system of commercial banks and regulated intermediaries.
"For the successful implementation of the project, we need to rely primarily on the private sector, regulated banks and firms that provide money transfer services. Open solutions can eliminate any gaps and shortcomings. Remember how the fed developed, which tried to "decentralize" the Federal banking system and now does not depend on politicians," explained Daniel Gorfin, adding that the digital dollar is aimed at ensuring partial decentralization.
The White paper States that the digital dollar will comply with the identity identification procedure (KYC) and anti-money laundering (AML) regulations. At the same time, one of the main tasks of the state cryptocurrency will be confidentiality, which requires certain changes to the country's legislation.
Earlier, Giancarlo stated that the growing interest in cryptocurrencies will lead to new opportunities for clearing houses, and blockchain and digital assets have become one of the key elements for improving the modern financial system.
