Digital Dollar Privacy & Power

The majority of the world's leading economies have launched central bank digital currency ("CBDC") initiatives. In particular, China has launched a sophisticated digital currency called the eCNY that promises to reshape money for billions of people, including many outside of China. Meanwhile, the EU has announced immediate plans for a digital euro. According to Giancarlo, these CBDC launches threaten the preeminence and power of the U.S. dollar as the world's default global currency. The former chairman argues that unless a digital dollar is released, foreign CBDC's could signal an end to the "exorbitant privilege" that the U.S. economy enjoys from its status as the world's dominant reserve currency.  

Not all CBDC's are created equally, and they can confer incredible new powers to the governments that control them. Giancarlo delves into important legal questions about financial privacy and contrasts the potential for First Amendment and Fourth Amendment protections that would be unique to a Digital Dollar that are absent from private cryptos or currencies like the digital yuan in China.

Christopher Giancarlo served as the 13th Chairman of the United States Commodity Futures Trading Commission. He is senior counsel to the international law firm, Willkie Farr & Gallagher.