American research center working on the Digital Dollar, has published a white paper, which details describes the General provisions, purpose and use of digital currency by the Central Bank.
On may 28, the Digital Dollar published its white paper – a document of 30 pages, detailing potential opportunities CBDC. The technical document describes the analytical work of the centre in the promotion of the digital dollar.
Project and tenets of the white paper
The article describes basic principles of what is a Digital Dollar, and what are its main objectives.
Project Digital Dollar was founded by former heads of the Commission commodity futures trading and the company of the professional services of Accenture. One of such founders is Daniel Garvin (Daniel Gorfine), former head of financial technology CFTC.
Garvin commented: “what we tried to do in the framework of the project digital dollar is a catalyst, and this document is a key step in this direction.”
White paper documented the interest of Gortyna, and the co-founder and former head of the CFTC George. Christopher Giancarlo (Christopher Giancarlo), in the use of digital dollar along with the traditional financial authorities and payment mechanisms are already available, including cash and automated technology clearing settlement.
Test any new technology
The document describes a large set of use cases of digital dollar, for example, the enormous remittances corridor between the United States and Mexico. It also expresses impatience, to use a future pilot programs to test these use cases as separate components:
“Thanks to the interaction with stakeholders, the public sector, and our Advisory group, we intend to further Refine these use cases and identify potential customers for testing hypotheses values and inform design decisions”.
Noting the importance of unit a wide range of tasks, which are expected to be settled digital dollar Garfin said:
“Piloting may occur in different parts of the project. It is possible to imagine, for example, research tokenization and its impact on financial inclusion and access. You can see the state programs of payments and methods of payments to individual recipients. ”
The weight of centralization and privacy
According to the document, the project will work within existing regulatory standards, he obviously does not want to overthrow the current monetary system of the United States. Mentioned several times about support for the currency format that is coming from the Federal reserve system to financial institutions, and then to the population:
“The digital dollar will be distributed through the existing two-tier architecture, commercial banks and regulated intermediaries.”
Although some recent laws require direct consumer access to accounts at the fed, Garfin explained the proposed structure of the draft digital dollar partially with the efforts towards decentralization:
“Rely primarily on the private sector and regulated banks and remittances seems a much better approach. The conventional solution would make sense only in case if there are gaps and challenges that need to be addressed.
If you think about how evolved the fed, he tried to decentralize the Federal banking system and the consequent political decision-making “.
White paper similarly requires that any digital dollar acted within the framework of the requirements of “Know your customer” and “anti money laundering”. At the same time, and in the White paper, and the founder of the project historically mentioned privacy as the main problem. The question we still need to see more clearly, on the basis of the 4th amendment as well as future legislation.
“This is a very important area. In the end, it is a political choice which government needs to do,” said Garfin privacy. “I think what we referred to in the article is a championship model, by binding and analogies of physical money.”