Digital dollar – The USA presented the concept of Digital Dollar Project

On Friday, May 29, the digital dollar whitepaper was published. The asset is being developed by a non-profitan organization led by ex-chairman of the Commodity Futures Trading Commission, Christopher Giancarlo.

The document repeats many of the ideas that Giancarlo has previously voiced:

“There is a global conversation going on, which happens once every few generations, which is trying to answer the question “What is money?”- said Giancarlo.

He believes that bitcoin began this conversation more than ten years ago, but now this issue is very acute due to the emergence of the Libra project, the digital currency of China and COVID-19.

The pandemic, according to Giancarlo, raises the question ofmoney not only to regulators, central banks and politicians, but also to ordinary people, especially those who do not have full access to the banking system:

“Suddenly the question arose: how can we quickly and adequately help these people during the crisis?”

Giancarlo and his Digital Dollar counterpartsargue that today's banking systems are not effective enough, and the dollar should be "tokenized." Here's how the new whitepaper project defines this term:

“Converting an asset, product, right or currency into a presentation with properties sufficient to confirm and transfer ownership.”

The closest parallel in the physical world isdollar bill, “bearer instrument”. The document describes what the Digital Dollar project is implementing as a “digital bearer tool” that takes advantage of distributed ledger technology.

Also makes a significant contribution to the development of the project.Ex-CAES Innovation Director, Daniel Gorfin. The technology partner was Accenture, which is also creating a digital crown platform in Switzerland.

“The release of whitepaper is an important step towards accelerating the creation of CBDC”- said Gorfin.

Recall that Giancardo promised to release a roadmap for the project before the end of May, "formulating the main elements and advantages of the digital dollar."

Among the key areas to usedigital dollar are now considering the organization of monetary transactions between the United States and Mexico. According to analytics in 2019, the volume of such transfers amounted to $ 136 trillion.

Digital Dollar Project team intends to commitA revolutionary change in the architecture of the US financial system. The document also indicates that the functioning of the system will be within the framework of regulatory legislation. According to the scheme, the digital dollar will go to the Federal Reserve System, and then, through commercial banks, to the population.

Gorfin also noted that the Digital Dollar Project should lead to partial decentralization:

“The key challenge for the digital dollar is a matter of privacy. But this is a political choice and it should be made by the government. ”

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