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from the all-the-better-to-track-you-with dept.
The former chair of the Commodity Future Trading Commission (CFTC) has partnered with Accenture to create the non-profit Digital Dollar Project, which plans to explore the creation of a U.S. Central Bank Digital Currency (CBDC).
“The digital 21st century is underserved by an analogue reserve currency,” said Chris Giancarlo, former CFTC chair under Presidents Barack Obama and Donald Trump. “A digital dollar would help future-proof the greenback and allow individuals and global enterprises to make payments in dollars irrespective of space and time.
The purpose of the Digital Dollar Project is to encourage research and public discussion on the potential advantages of a digital dollar, convene private sector thought leaders and actors, and propose possible models to support the public sector. The Project will develop a framework for practical steps that can be taken to establish a dollar-based CBDC.
A cryptocurrency backed by a fiat cash is known as a stablecoin.
A “tokenized” U.S. currency would coexist with other Federal Reserve liabilities and serve as a settlement medium to meet the demands of the digital world and a cheaper, faster and more inclusive global financial system, Giancarlo added in a statement.
[...] The U.S. dollar is the world’s “reserve currency” because it represents about 58% of all foreign exchange reserves in the world, according to the International Monetary Fund (IMF). Additionally, 40% of the world’s debt is denominated in dollars.
Some experts believe the U.S. dollar could fall behind as the defacto ecommerce currency if other nations launch state-sponsored stablecoin first.
(Score: 2) by barbara hudson on Friday January 24 2020, @01:55AM
Merchants generally like cash. Even large amounts. That 2% - 3% credit card surcharge adds up really quickly. And when they get dinged extra for credit-card-imposed "cashback" schemes that are paid by the retailer and not the credit card company (contrary to public perception) you can end up losing money on cc transactions with tight margins, or lose even more with loss leaders.
A store doing a quarter million a day can end up losing $10k or more on cashback schemes, transaction fees, etc. Calling the armoured car guys for a quick pickup doesn't cost that.
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