Crypto Dad, aka J. Christopher Giancarlo, has stated that both CBDCs (central bank digital currencies) and stablecoins can coexist in the digital economy. In a Consensus 2023 event, Giancarlo expressed his belief that CBDCs can be used as a tool by governments to maintain control over their monetary policies, while stablecoins can serve as a convenient means of exchange for individuals and businesses. His comments highlight the potential for multiple types of digital currencies to coexist and cater to different needs and use cases. As the world moves towards a more digital future, the debate over CBDCs vs stablecoins is likely to continue, and Giancarlo’s insight could play a key role in shaping the ongoing discourse.
Central Bank Digital Currencies (CBDCs) are becoming increasingly popular across the globe. Christopher Giancarlo, former chairman of the Commodities and Futures Trading Commission (CFTC), believes that CBDCs are inevitable and will exist alongside private market stablecoins. In a speech given at Consensus 2023, Giancarlo argued that money is too important to leave to central bankers and called for a discussion and experimentation within the US as to how a CBDC might be put in place, including the values it should embody.
Giancarlo concluded that CBDCs are a better option than private market digital dollars that include the same risks associated with public market ones. He argues that there is nothing inherently superior about non-sovereign digital currency in protecting privacy over central bank digital currency. Private entities that issue digital dollars could be put under government pressure to conduct surveillance on their users to disable financial transactions with disfavored groups and activities. Giancarlo believes that CBDCs is a step towards providing financial freedom and competing on the global stage rather than losing dominance to authoritarian digital currencies from rival nations.
The former politician, commonly known as “Crypto Dad,” led the CFTC to greenlight trading for Bitcoin futures on the CME in 2017. After leaving, Giancarlo founded the Digital Dollar Project, which sought to research how a CBDC in the US could be properly implemented. Over 100 foreign governments, including 19 members of the G20, are already exploring such technologies.
In conclusion, the growth of CBDCs is inevitable, and while private market stablecoins present a false choice between financial freedom and financial control, Giancarlo believes that CBDCs provide a more competitive option that embodies American values. The success of fiat money derives from the trust and the consent of ordinary citizens who place value in it, and CBDCs will continue to align with those values to maintain stability and trust in the monetary system.