What does the digital dollar white paper say? What are the similarities and differences with DCEP?
On May 29, the Digital Dollar Project (Digital Dollar Project) released its first white paper, which aims to propose a framework for the creation of a US central bank digital currency (CBDC). The white paper also details the need for tokenized dollars and the construction of digital dollars system, and determined that a digital dollar could help the U.S. maintain the U.S. dollar’s status as the world’s reserve currency.
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subject similar
The members of the digital dollar project team together constitute its main body. The main members include former US Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo, Gattaca Horizons CEO and former US Commodity Futures Trading Commission Chief Innovation Officer Daniel Gorfine, Accenture Senior Managing Director Manager David Treat and Pure Storage CEO Charles Giancarlo, as well as several Accenture market support analysts and directors, and the Digital Dollar Foundation (Digital Dollar Foundation) jointly established with Accenture has been formally established in early 2020.
In the digital dollar white paper, the current financial system in the United States is analyzed and the use of a digital dollar based on a "two-tier distribution architecture" is advocated, in which commercial banks and other regulated entities will act as intermediaries between the Federal Reserve and end users. Therefore, the main body of the digital dollar will be the Federal Reserve, and the digital dollar will be issued to banks through the Federal Reserve.
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Operating system is similar
The digital dollar white paper states that any U.S. central bank digital currency should maintain the existing two-tier banking system architecture, which reads: “The two-tier banking system retains the current currency distribution It also ensures that innovation and access are not compromised."
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The Digital Dollar Foundation believes that a digital dollar based on a token system is the best solution. Although the bottom layer of DCEP is centralized, it is also a tokenized legal digital currency.
Since the digital dollar white paper has just been released, many other aspects of the plan are still under discussion, such as privacy, which is likely to depend on the Fourth Amendment of the United States and future legislation, while DCEP uses controllable anonymity to protect user privacy. legal regulation.
Another example is the interest calculation of the digital dollar. This plan is still under discussion. If interest is calculated, it may be easier to increase the chances of implementing and transmitting monetary policy by adjusting positive and negative interest rates, but it is also likely to have a more complicated impact on banks. If it does not bear interest, it is the same as cash. It does not bear interest when it is held outside the account, but it can be deposited in the bank. DCEP has made it clear that it will not bear interest and will not impact the existing business of banks.
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