The ex-head of the United States Commodities and Futures Trading Commission (CFTC) has called for central bank digital currencies (CBDCs) and stablecoins to prioritize values centered on freedom. J. Christian Giancarlo, who held the position at the CFTC from 2014 to 2019, emphasized the importance of privacy and resistance to censorship for CBDCs and stablecoins during a keynote speech at the FT Live Crypto and Digital Assets Summit.
Giancarlo made a comparison to the early days of the internet, noting that nations like the U.S. and England, as well as other leading democracies, facilitated the “internet of information” three decades ago, reflecting the principles of open and free societies. He stated, “The free world and free people must again work together to make sure that the future of digital value networks reflects similar standards of financial freedom and economic liberty that are suitable for human worth and dignity.”
Giancarlo, who now leads the Digital Dollar Project, criticized American leadership for its regulatory approach towards the cryptocurrency sector, which he believes borders on hostility. He expressed his belief that cryptocurrencies and blockchain technology have brought about increased speed, efficiency, automation, and lowered costs. Additionally, they have unlocked new business models, challenged traditional market structures, and displaced intermediaries.
Giancarlo questioned whether a new “internet of value” would enhance economic liberty and financial freedom or if it would limit liberties, similar to how the “second generation of the internet” dominated by tech giants like Facebook and Google has faced criticism.
The former CFTC chair also highlighted the global development of CBDCs and the growing use of public stablecoins. He noted that as of 2024, 134 countries, representing 98% of the global gross domestic product, are actively exploring the issuance of CBDCs, compared to 35% in 2020. Stablecoin use has also seen significant growth, with 11 trillion in on-chain transactions settled, almost surpassing Visa’s settlement volumes. The global market cap of stablecoins has risen from $3 billion in 2019 to $138 billion in 2024.
Giancarlo concluded by stating that individual economic privacy and resistance to censorship should be intentional design choices and competitive advantages, aligning with the principles of free societies and open economies. CBDCs and stablecoins should incorporate individual economic privacy into their architecture, serving as desired instruments for those seeking financial autonomy and inclusion, in line with basic human rights and civic values.