Former CFTC Chairman: CBDCs and Stablecoins Must Ensure Values Based on Freedom
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) urged that central bank digital currencies (CBDCs) and stablecoins should be designed with values based on freedom.
J. Christian Giancarlo, who served as CFTC chairman from 2014 to 2019, emphasized the necessity for CBDCs and stablecoins to ensure privacy and resistance to censorship 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 this to the early internet, stating that 30 years ago, major democratic countries like the U.S. and the U.K. achieved an "information internet" that embodied the values of open and free societies.
Giancarlo stated, "The free world and free people must once again work together to ensure that the future of the digital value network reflects standards of financial and economic freedom that are suitable for human values and dignity."
The current head of the Digital Dollar Project and former CFTC chairman indicated that the U.S. is losing its leadership in this area due to a nearly hostile regulatory approach to the cryptocurrency industry:
"Let us set standards for digital currencies, both sovereign and non-sovereign CBDCs, and stablecoins that are worthy of human freedom and the aspirations for freedom around the world."
Giancarlo commented on the impact of the internet, noting that the technology is now funding work already completed across 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 stated that cryptocurrencies and blockchain technology enhance speed, efficiency, and automation, reduce costs, open new business models, challenge traditional market structures, and replace intermediaries.
The former CFTC chairman then questioned whether the new "value internet" would enhance economic and financial freedom or, like the "second generation internet" dominated by tech giants like Facebook and Google, would deprive freedom, which has already faced criticism.
Giancarlo also highlighted statistics related to the development of CBDCs around the world and the growing use of public stablecoins. As of 2024, 134 countries, representing 98% of global GDP, are actively exploring the issuance of CBDCs, up from 35% in 2020.
The use of stablecoins has also surged, with on-chain transaction settlement volumes reaching $11 trillion, nearly surpassing Visa's settlement volumes. The global market capitalization of stablecoins has grown from $3 billion in 2019 to $138 billion in 2024.
Meanwhile, Bitcoin's market capitalization has surpassed the Swiss Franc, becoming the 13th largest currency in the world. Giancarlo noted that the reality is that people around the world will use multiple digital currencies simultaneously:
"In conferences like this, there is sometimes a popular debate between CBDCs, stablecoins, and cryptocurrencies, which is entirely the wrong choice. The future globally will include all of these: cryptocurrencies, CBDCs, stablecoins, etc."
The former CFTC chairman concluded that personal economic privacy and resistance to censorship should be recognized as design choices and competitive advantages in free societies and open economies.
By encoding personal economic privacy into their infrastructure, CBDCs and stablecoins should become ideal tools for people around the world who aspire for financial autonomy and inclusivity, aligning with fundamental human rights and civic values.
"The public should be able to see for themselves whether they are being surveilled and whether they are being manipulated."
