In the united States 🇺🇸 is carrying out a project that is quite special, called “The Digital Dollar Project“, or better known as the Digital Project Dollar. Basically, it is trying to create as private a criptomoneda fully guaranteed in u.s. dollars. However, the question arises whether the FED will allow.
China vs a very passive-united States
It’s No secret that the central government of China 🇨🇳 is very advanced in its project to launch his own criptomoneda state. This should cause a race to dominate this new field of game world. The competitors would be large nations like the united States 🇺🇸, but this is not happening.
Even Mark Zuckerberg, CEO of Facebook, is his statements in front of Congress when he attempted to launch the project of Pound. He mentioned the need to start the race with China before it is too late.
In addition, he attempted that the congress felt the urgency of the need to create a criptomoneda national of the united States, regardless of whether it was public or private. Raising that must occur before the us dollar lost its relevance. Losing to the currency of a nation as authoritarian as China, all thanks to his criptomoneda.
But, the words of Mark Zuckerberg fell on deaf ears as the congress was ignored. However, Mark is not the only one who feels the urgency of creating such criptomoneda. And it is here where comes into play the project Digital Dollar.
5 key points to understand the project’s Digital Dollar
The Digital project Dollar published its White Paper recently, where he details the necessity of a version in the world of criptomonedas of the u.s. dollar.
Such a digital version could help the economy of the united States to maintain its high status in the generations that are to come. At the same time that serves to a greater range of individuals all over the world, both individual and institutions. Normally the current financial system denied the access.
1 – Who Manages the project?
The Digital Project Dollar is headed by the former president of the Commission of Trade Commodities (CFTC), Chris Giancarlo, the former director of Innovation of the CFTC, Daniel Gorfinethe CEO of Accenture, David Treatand the CEO of Pure Storage, Charles Giancarlo.
So we could say that they are people with a lot of experience. Both in the traditional world, bureaucratic, and with names that command respect in the status Quo of the united States.
“What we hope with the Project Digital Dollar is to be the beginning of a great debate in the united States about the role that will take the country in the following technologies as the criptomonedas”.
He expressed the team of the Digital Dollar.
2 – what is it?
In a nutshell, the White Paper tries to explain the construction of a dollar digital that use a “architecture Two Tiered (two levels)“.
With the participation of the commercial banks most renowned of the united States, and of all the regulators potential to act as an intermediary between the FED and the end-users.
“The role played by the commercial banks will not be another do that the Digital Dollar reaches the hands of the americans, who are insured by them.”
We read in the White Paper of the Digital Dollar.
On the other hand, the role played by the FED is issuing the Digital Dollar and distribute them among the banks.
While users will be able to store funds in their accounts or traditional to keep them in their propías Wallets.
3 – A union public-private
As we well know, the united States is famous for being the birthplace of the capitalist economy, in which the central state has the role of a major regulator. And that this does not interfere much in the technological decisions of the great minds that live there.
At least clear, that these offend against the safety of the public or of the same status quo american.
And this has been the case with the criptomonedas, so something strange, they have had a behavior something orthodox and condemning them. We can see in the failed attempts of a Pound of Facebook, Ton of Telegram, or ETF’s, with all of the necessary regulations.
According to the team of Digital Dollar, this conflict is not benefiting anyone, because in the history of the united States, the union of the State and the private has been of vital importance to be in the position now occupied.
“When you do big things in the united States, as the space program, such as the Internet, it is always a association healthy between what is public and what is private. A part contributing to the innovation, and the other looking for the fundamental principles of the privacy, rights, and freedoms of the individual”. Expressed the project team’s Digital Dollar.
A more current example, we can see what was achieved with the union of SpaceX (a private company at the hands of Elon Musk), and NASA (a state company).
4 – The Digital Dollar can earn interest
The team said that once the Digital Dollar is in the bank accounts of the traditional banks, these may be loaned out to earn interest. Such as is done with the money trust traditional.
“Unless the Digital Dollar is placed in a storage solution or custody similar to a deposit insurance, once it is changed by balances in a bank account is fungible with other funds as on the balance sheet of banks”noted in the White Paper.
5 – savings Accounts vs Tokens
The White Paper of the Digital Dollar also compared the concept of what it is to be a dollar tokenizado with an account that works just like a wallet of criptomonedas, with the accounts traditional, or a token traditional.
“A dollar tokenizado, such as the Digital Dollar, it would be much more applicable. The dollar tokenizado should be faster, more efficient, less expensive and able to extend the usefulness of the dollar in paper.”
He expressed the team of the Digital Dollar.
The team of Digital Dollar believes that a real criptomoneda of the united States can address many issues, including the construction of a new architecture of money for generations to come, not only within the country but also abroad and to stimulate financial inclusion at the global level.