A recent effort by former United States Commodity Futures and Trading Commission (CFTC) Chairman, Christopher Giancarlo to lead the country towards the launch of a digital dollar has met both criticism and praise from crypto enthusiasts and mainstream observers.
Those kicking against the move worry about how the proposed digital dollar would handle the delicate issue of user privacy, given the possibility of data exploitation by governments if they are trusted with a database that grants them access to citizens’ private information.
In a recent interview on the Unchained podcast, Giancarlo mentioned that the upcoming digital dollar could offer users almost absolute privacy rights.
“In that regard, I think if the United States does it right, and designs a digital dollar right, it could have superior if not absolute privacy rights compared to central bank digital currencies or commercial cryptocurrencies offered by others,” the former CFTC chairman affirms
He also explained that the upcoming digital dollar could offer as much privacy as possible while still undergoing the Anti Money Laundering (AML) Know-Your-Customer (KYC) monitoring policy. Thus, the digital dollar could be an instrumentalist in creating a balance between privacy rights and national security or law enforcement rights.
When asked on the security level of the upcoming digital dollar and the possibility of the system being hacked, Chris Giancarlo answers, “if the standard of a financial system is that it can’t be hacked, then we might as well shut down the existing account space system because it is hacked all the time.”
“The breakthrough of this technology is its consensus structure. its ability on a consensus basis, distributed basis, to get beyond the single point of failure verification process that we have in place now,” he added.