J. Christian Giancarlo, the former head of the United States Commodities and Futures Trading Commission (CFTC), has made an impassioned plea for central bank digital currencies (CBDCs) and stablecoins to prioritize libertarian principles in their design. Speaking at the FT Live Crypto and Digital Assets Summit, Giancarlo emphasized the importance of privacy and resistance to censorship in these digital currencies.
Giancarlo drew a parallel between the early days of the internet and the current state of CBDCs and stablecoins. He highlighted how nations like the U.S. and England embraced the “internet of information” three decades ago, which reflected the values of open and free societies. He called on the free world and its people to work together to ensure that the future of digital value networks upholds similar standards of financial freedom and economic liberty that are in line with human worth and dignity.
As the leader of the Digital Dollar Project, Giancarlo criticized the regulatory approach of American leadership towards the cryptocurrency sector, describing it as hostile. He compared the impact of the internet on various sectors to what cryptocurrencies and blockchain technology are now doing to finance. According to Giancarlo, these technologies have improved speed, efficiency, automation, and reduced costs, while also challenging traditional market structures and displacing intermediaries.
Giancarlo raised concerns about whether a new “internet of value” would enhance economic liberty and financial freedom or restrict liberties, similar to how tech giants like Facebook and Google have faced criticism for dominating the “second generation of the internet.”
He also highlighted the increasing development of CBDCs and the growing use of public stablecoins worldwide. Currently, 134 countries, representing 98% of global GDP, are actively exploring CBDC issuance, compared to 35% in 2020. The use of stablecoins has also surged, with on-chain transactions amounting to 11 trillion, almost surpassing Visa’s settlement volumes. The global market cap of stablecoins has grown from $3 billion in 2019 to $138 billion in 2024. Additionally, Bitcoin’s market capitalization has surpassed that of the Swiss franc, making it the 13th largest currency worldwide.
Giancarlo concluded by asserting that individual economic privacy and resistance to censorship should be deliberate design choices and competitive advantages of systems that align with the values of free societies and open economies. He emphasized that CBDCs and stablecoins should prioritize individual financial autonomy and inclusion, in line with basic human rights and civic values.