Christopher Giancarlo: Digital Currencies Must Guarantee the Right to Financial Freedom

Christopher Giancarlo, who served as the Chairman of the United States Commodity Futures Trading Commission (CFTC) from 2014 to 2019, has issued a statement emphasizing the need to ensure financial freedom in the context of the development of digital currencies. In his opinion, central bank digital currencies (CBDCs) and stablecoins, backed by real assets, should guarantee the protection of people’s right to freely manage their financial resources.

This statement comes in the wake of a recent announcement by the current CFTC Chairman, Rostin Behnam, who outlined plans to tighten regulatory measures on cryptocurrency companies in the United States. Behnam declared intentions to strengthen oversight and introduce stricter rules for cryptocurrency transactions, which has raised concerns among industry representatives.

Giancarlo highlighted that CBDCs and stablecoins open up new opportunities for cross-border transfers, allowing for quick and unhindered movement of funds to any point in the world. However, to ensure stability and trust in these instruments, they must have real backing. The ex-CFTC Chair believes that the optimal solution could be to peg each token to fiat currencies, primarily to the US dollar, which serves as the world’s reserve currency.

Drawing a parallel with the history of the internet’s development, Giancarlo recalled that the United Kingdom and the United States were at the forefront of creating the global network, which became a channel for the free exchange of information between people worldwide. He believes that the same principle of freedom should apply to digital currencies, enabling every individual to freely manage their finances without restrictions or obstacles.

Christopher Giancarlo’s statement underscores the importance of maintaining a balance between regulation and freedom in the realm of digital currencies. On the one hand, it is necessary to ensure the stability and security of cryptocurrency transactions; on the other hand, it is crucial to avoid excessive restrictions on the financial freedom of citizens. The ex-CFTC Chair’s position could serve as a foundation for further discussions on the future of digital currency regulation in the United States and other countries around the world.