Christopher Giancarlo, co-founder of the Digital Dollar Project and former chairman of the Commodity Futures Trading Commission, urged the U.S. to take the lead in turning central bank Crypto currency (CBDC) into a “free currency” rather than a “regulatory coin” in the future. Giancarlo recently The importance of upholding democratic values such as freedom of expression and privacy is emphasized in an opinion piece.
He believes that in order to provide high levels of privacy, the U.S. should adopt existing technologies such as “zero-knowledge proofs, homomorphic encryption, and multi-party computation,” which are already used by several cryptocurrency protocols.
The Justice Department is investigating whether the Obama administration violated a request for a search warrant against a man accused of murder, leading news publications reported in recent days. They claim that the use of smart law enforcement can help curb crime while protecting people’s privacy.
Nonetheless, they stress that this can only be achieved if the US reviews its current financial regulatory laws, including recent proposals such as know-your-customer (KYC) and anti-money laundering (AML) regulations. Such measures, they say, allow excessive surveillance without justification and, without proper privacy protections, risk deploying a CBDC, as in China.
Thanks to the e-yuan, the People’s Bank of China will be able to see every transaction in China, which could allow the government to link political conformity with personal affluence and drive out political enemies. U.S. senators such as Senator Tom Emmer, who initiated the CBDC anti-surveillance bill in 2022, expressed concern about this. A CBDC that tracks transaction-level data down to individual users raises concerns for Emmer because it could be set up to stifle politically controversial practices.
Serious issues of CBDC privacy must be addressed. The deployment of cutting-edge technology can help protect individual privacy by maintaining appropriate restrictions to prevent crime. If the United States is to take the lead in creating a CBDC, it must focus on defending constitutional rights and democratic principles. By doing so, the U.S. can serve as an example for other countries, ensuring that CBDCs are not used as espionage devices, but rather as a way to promote financial inclusion and economic freedom.
The United States must take the lead in creating a CBDC that protects personal information and freedom. To protect privacy while reducing crime, a review of current financial regulatory policies is necessary. In doing so, the United States can serve as a model for other countries, promoting financial inclusion and economic freedom.
Source of information: compiled from TODAYQ by 0x information.The copyright belongs to the author Om Labde, and shall not be reproduced without permission