Former CFTC Chair emphasizes the need for CBDCs and stablecoins to uphold principles of liberty

The ex-chief of the United States Commodities and Futures Trading Commission (CFTC) is calling for central bank digital currencies (CBDCs) and stablecoins to prioritize principles of freedom. J. Christian Giancarlo, who led the CFTC from 2014 to 2019, emphasized the importance of privacy and resistance to censorship in CBDCs and stablecoins during a keynote speech at the FT Live Crypto and Digital Assets Summit. Giancarlo compared the current situation to the early days of the internet, when nations like the US and the UK championed the “internet of information” and its values of openness and freedom. He argued that now, the free world must come together to ensure that digital value networks uphold similar standards of financial freedom and economic liberty. Giancarlo, who now heads the Digital Dollar Project, criticized the US for its hostile regulatory approach toward cryptocurrencies, stating that American leadership is failing in this regard. He also highlighted the impact of cryptocurrencies and blockchain technology, stating that they have improved speed, efficiency, and automation, while challenging traditional market structures and reducing costs. Giancarlo questioned whether the emerging “internet of value” would enhance economic liberty and financial freedom or whether it would erode liberties, similar to the dominance of tech giants like Facebook and Google in the “second generation of the internet.” He noted the global development of CBDCs and the growing use of public stablecoins, with 134 countries actively exploring CBDCs and stablecoin transactions totaling $11 trillion, almost reaching the settlement volumes of Visa. The market capitalization of stablecoins has also surged from $3 billion in 2019 to $138 billion in 2024, surpassing Bitcoin’s market cap. Giancarlo concluded by emphasizing the need for individual economic privacy and censorship resistance in CBDCs and stablecoins, stating that they should be designed to empower people worldwide with financial autonomy and inclusion, aligning with basic human rights and civic values.