Former CFTC Chairman: CBDCs and stablecoins must ensure they are based on liberal values.
J. Christian Giancarlo emphasized the importance of upholding the values of freedom, privacy, and economic liberty in a keynote speech in London.
Source: Gareth Jenkinson, Cointelgraph
The former chairman of the U.S. Commodity Futures Trading Commission (CFTC) urges central bank digital currencies (CBDCs) and stablecoins to adhere to values based on freedom in their design.
J. Christian Giancarlo, who served as CFTC chairman from 2014 to 2019, emphasized the necessity for CBDCs and stablecoins to ensure privacy and regulatory oversight during his keynote speech at the FT Live Cryptocurrency and Digital Assets Summit.
J. Christian Giancarlo speaking at the FT Live Cryptocurrency and Digital Assets Summit in London. Source: Gareth Jenkinson
Giancarlo compared it to the early days of the internet, stating that 30 years ago, major democratic countries like the U.S. and the U.K. achieved the "information internet," reflecting values of openness and a free society.
Giancarlo said, "The free world and free people must once again come together to ensure that the future of the digital value network reflects standards of financial freedom and economic freedom that are consistent with human values and dignity."
The former chairman of the CFTC, who is now heading the Digital Dollar Project, stated that the U.S. is losing its leadership position in this area due to its almost hostile approach to regulating the cryptocurrency industry:
"Let us set standards for digital currencies, sovereign and non-sovereign CBDCs, and stablecoins that are worthy of human freedom and the desire for freedom around the world."
Giancarlo shared his views on the impact of the internet, noting that the technology is now funding work that has already been completed in various industries:
"In terms of information gathering, think of Wikipedia. In retail shopping, think of Amazon. In entertainment, think of YouTube. In social networking, think of Facebook and Twitter."
Giancarlo highlighted how cryptocurrencies and Blockchain technology have increased speed, efficiency, and levels of automation, reduced costs, opened up new business models, challenged traditional market structures, and replaced intermediaries.
The former chairman of the CFTC then questioned whether the new "value internet" would enhance economic freedom and financial freedom, or whether it would, like the "second-generation internet" dominated by tech giants like Facebook and Google, deprive freedom, which has already faced criticism.
Giancarlo also emphasized statistics related to the development of CBDCs worldwide and the increasing use of public stablecoins. By 2024, 134 countries, accounting for 98% of global GDP, are actively exploring the issuance of CBDCs, compared to 35% in 2020.
The use of stablecoins has also seen a sharp increase, with on-chain transaction settlement volumes reaching $11 trillion, nearly surpassing Visa's settlement volume. The global market value of stablecoins has grown from $30 billion in 2019 to $1.38 trillion by 2024.
Meanwhile, the market value of Bitcoin has exceeded the Swiss Franc, making it the 13th largest currency globally. Giancarlo stated that in reality, people around the world will use multiple digital currencies simultaneously:
"At conferences like this, there is sometimes a popular debate between CBDCs, stablecoins, and cryptocurrencies, which is entirely a false choice. The future globally will include all of these: cryptocurrencies, CBDCs, stablecoins, and more."
The former chairman of the CFTC concluded by stating that individual economic privacy and resistance to surveillance should be recognized design choices and competitive advantages in a free society and open economy.
By embedding individual economic privacy into their infrastructure, CBDCs and stablecoins should become ideal tools for people around the world who desire financial autonomy and inclusivity, aligning with fundamental human rights and citizen values.
"The public should be able to see for themselves whether they are under surveillance and whether they are being manipulated."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
