Christopher Giancarlo, ex-chairman of CFTC, believes that the US needs to convert the dollar to digital format in order not to lose its position in the international arena.
According to Giancarlo, this may happen because other countries are already developing national digital currencies. So, the best option to avoid negative consequences is to move in the same direction, that is, create a digital dollar. He explained that it is possible to offer digital USD, a blockchain protocol approved by the government, which would be created and maintained by an independent, non-governmental group, while banks and other trusted payment companies would administer it.
In this case, the cash transferred to the system would be exchanged for a digital dollar through blockchain technology, the money would be sent to escrow accounts supported by the Federal Reserve.
Giancarlo suggests that such important figures as central banks and social platforms will actively issue their own currencies over the next few years. As their networks expand, the status of the dollar as the most popular currency for cross-border payments can be undermined. Moreover, the former CFTC representative compared the possible fate of the dollar with what happened to the pound – the currency lost ground after World War II.
