Former CFTC chair talks crypto: Believes digitalization can strengthen dollar

Former Commodity Futures Trading Commission (CFTC) chairman expects the watchdog to release its response to cryptos. Former chairman Christopher Giancarlo, left CFTC this summer. He believes that the regulator “may actually need to look at some policy responses.”

CFTC recognizing cryptocurrencies

Giancarlo made his opinions public in an interview on October 9, stating that 2019 saw a significant increase in crypto recognition. He said that regulators have realized they need to do more than just being aware of crypto-related matters.

Giancarlo believes that Libra had an important role to play. He believes that Libra and central bank digital currencies have given a wake-up call to regulators in the country. He also noted that the chairperson of the US Securities and Exchange Commission is also thinking about the agency’s response.

Digital Dollar

Giancarlo declared that it was high time to consider developing a digital dollar. He said that by releasing a digital dollar, the US government would cement the dollar’s hegemony. The dollar is being used as a global reserve currency. The position will be cemented if the dollar is digitalized. This would increase the fiat’s liquidity while providing the same stable support as a reserve currency.

Regardless, Giancarlo admits that he does not see the Federal Reserve becoming a deposit-taking institution. Giancarlo does not want to remove intermediaries from the traditional banking system. Giancarlo rather wants financial intermediaries to “play a role” in the digital dollar.

Currently, the CFTC is under the leadership of Heath P. Tarbert. The agency has also seen a change in its board of directors. The agency’s new Market Oversight Director, Dorothy D. DeWitts, is a former Coinbase employee.