Embrace Libertarian Values in CBDCs, Stablecoins Design, Urges Former CFTC Chairman
Summary:
Former U.S. Commodities and Futures Trading Commission Chair, J. Christian Giancarlo, advocates for central bank digital currencies (CBDCs) and stablecoins to uphold libertarian values in their design during his keynote speech at the FT Live Crypto and Digital Assets Summit. Giancarlo emphasizes on the importance of privacy and censorship resistance, likening the digital currency revolution to the birth of the internet. He criticizes the current U.S. regulatory approach towards cryptocurrencies and calls for digital currencies to honor human liberty. The use of various digital currencies, such as CBDCs, cryptocurrencies, and stablecoins, will become a global norm, according to Giancarlo.
Former U.S. Commodities and Futures Trading Commission (CFTC) Chairman, J. Christian Giancarlo, has advocated for central bank digital currencies (CBDCs) and stablecoins to embrace and reflect libertarian principles in their design. Having led the CFTC from 2014 to 2019, Giancarlo emphasized the importance of privacy and resistance to censorship for CBDCs and stablecoins during his keynote speech at the FT Live Crypto and Digital Assets Summit.
Drawing parallels with the dawn of the internet age, Giancarlo noted how nations like the U.S. and England and other strong democracies championed an “internet of information” that embodied the principles of open and liberal societies around three decades ago. “We need to once again rally behind the cause of ensuring the future digital value networks reflect comparable standards of financial independence and economic liberty, aligning with the inherent worth and dignity of individuals,” said Giancarlo.
The ex-CFTC head, now leading the Digital Dollar Project, criticized American leadership for its inadequate approach to regulation within the cryptocurrency sphere, appearing almost adverse: “We should work towards setting standards for digital currencies, sovereign and non-sovereign CBDCs, and stablecoins that honor human freedom, serving people worldwide who seek liberty.”
Giancarlo deliberated on the transformative power of the internet, highlighting its impact on various sectors: “Consider the changes brought about by the internet - Wikipedia for information aggregation, Amazon for retail shopping, YouTube for entertainment, and Facebook and Twitter for social networking."
He added that advancements in cryptocurrencies and blockchain technology have enhanced speed, efficiency and automation while reducing costs, challenging conventional market structures, and removing intermediaries. Giancarlo questioned if the evolving “internet of value” will promote or detract from economic freedom and financial liberty, drawing comparisons to internet 2.0's criticism for monopolistic practices by tech behemoths such as Google and Facebook.
He shared statistics on the emerging CBDCs globally and the increasing use of public stablecoins. As of 2024, 134 nations, making up 98% of global GDP, have actively initiated CBDC issuance exploration, a significant jump from 35% in 2020. The use of stablecoins has seen an enormous surge, settling 11 trillion in onchain transactions, nearly outdoing Visa's settlement volumes. Stablecoins' global market cap has also expanded from $3 billion in 2019 to $138 billion in 2024. Meanwhile, Bitcoin's market cap now supersedes the Swiss franc, making it the world's 13th largest.
Giancarlo expresses his belief that using a mix of digital currencies will be the norm in future: “Contrary to popular conference debates concerning preference between CBDCs, stablecoins, and crypto, it shouldn’t be an either-or choice. The future collectively holds crypto, CBDCs, stablecoins, and more.” Concluding his speech, the former CFTC chairman stressed that economic privacy and resistance to censorship should be intrinsic to the design of open economic systems and societies. By embedding personal economic privacy in their designs, CBDCs and stablecoins should empower individuals striving for financial independence and inclusion worldwide.
Published At
5/8/2024 5:17:14 PM
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