The article (White paper) of the US Digital Dollar was published!

The article (White paper) of the US Digital Dollar was published!

By ... | World of Crypto | 30 May 2020


The American Chamber of Commerce, which works on the digital dollar, has issued a white paper (White Piper) describing the primary goals and applications of the central bank's digital currency (the national digital currency) for the United States.

According to Kevin Telegraph, on May 28 (June 8), the whitepaper of the digital dollar project was published. The White Piper is a 30-page document detailing the potential applications of the Central Bank's (CBDC) digital currency. This White Piper is part of the activities of the fledgling American think tank to promote the development of a digital dollar.

This article gives you a brief overview on the basics of what a digital dollar can be and what it can do.

The digital dollar project was founded by former leaders of the US Commodity Futures Trading Commission (CFTC) and Accenture. Daniel Gorfine is one of the founders of the project, who last year headed the CFTC's Fintech office in the US government.

Gorfin said

What we've been trying to do with the digital dollar project has been to catalyze, and this article is a key step in that direction.

In this white paper, Gorfin and former CFTC chairman Christopher Giancarlo wrote in writing that the digital dollar could work alongside traditional financial institutions and existing payment mechanisms, including cash and a stable system (ACH).

This article gives you a brief overview on digital dollar applications. For example, a large financial route for remittances between the United States and Mexico is one of the uses of the digital dollar. The project also seeks to implement pilot programs for separate testing of each of these applications.

Gorfin said

Through our interaction with shareholders, the public sector and our consulting team, we intend to improve these applications and to test experimental programs in order to test value hypotheses and inform design decisions.

Referring to the classification of a wide range of tasks that can be facilitated by a single digital dollar, Gorfin added:

Laboratories can be performed in different sections and stages, all of which depend on the general topic. For example, the study of tokenization (converting an asset such as a house into a large number of tokens) and its effect on access and financial inclusion. You can also consider individual government benefit programs and how they can be generalized to individuals.

Given the project's willingness to operate within the existing legal framework, it is clear that the digital dollar does not intend to violate the current US monetary system. In this article, it is mentioned several times that the digital dollar project maintains the general form of currency flow from the Federal Reserve to financial institutions and then to the public.

The article states:

Digital dollars are distributed through two-tier architecture in commercial banks and legal intermediaries.

While some legislation requires direct consumer access to federal reserve accounts, Gorfin said the proposed structure for the digital dollar project was an attempt to decentralize:

It seems to be a much better approach to rely primarily on the private sector and the legislative and money-transfer banks. Public solutions only make sense if there are gaps or problems left to be solved. [2] If you look at how the Federal Reserve has developed, you will find that this has been an attempt to decentralize the federal banking system and the relevant decisions.

Similarly, the digital dollar will operate under existing authentication (KYC) and anti-money laundering regulations. Meanwhile, both White Piper and the project's founders have cited privacy as a major concern. Based on the Fourth Amendment to the US Constitution and other future bills, we will have to wait and see how this is handled.

"Privacy," Gorfin said.

This is a fundamental and important area. Ultimately, these are political choices that must be made by governments. I think what we introduced in the article is the best possible model. This model is designed by imitating the characteristics of physical cash.

The development of Covid 19 has sparked much debate about how to restructure the financial system to make it more responsive to the crisis, including several bills to launch a digital dollar.



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