US Congressman Jim Himes believes that the global acceleration of CBDC development is forcing the US to accelerate the launch and testing of the digital dollar.
Connecticut Rep. Jim Himes issued a statement on June 22 stating that the US state digital currency will protect the US dollar.
According to him, CBDC will support unbanked US citizens and therefore will be more trusted than any other type of cryptocurrency.
“A U.S. CBDC will have advantages over privately issued stablecoins and crypto assets, most notably the ability to be backed by the full faith and credit of the U.S. government like traditional cash and will provide holders with a degree of security that may not be offered by privately issued stablecoins due to the risk associated with reserves of sponsors” the document says.
Himes acknowledges that a central bank’s digital currency may pose privacy or security risks, as well as broader implications for monetary policy.
Despite this, the congressman suggested that the Fed “experiment with a wide range” of privacy and encryption tools to protect consumer data, as many countries move at an accelerated pace to launch their national currency.
The legislator believes that when testing the digital dollar, it is imperative to involve the public.
“The American CBDC should be seen as an alternative, not a replacement, to commercial money and payment systems. Therefore, the architecture and characteristics should provide more efficient operation of commercial organizations. the statement says.
The white paper also makes the case for an account-based wallet system rather than the token system proposed by the Digital Dollar Project.
Himes notes that an account-based system would require the Fed or relevant entities to enforce know-your-customer rules for wallet users, while a tokenized system would prioritize verification of tokens and transactions.
However, after the Fed posted its vision of the digital dollar, many experts said that its implementation would lead to total control of users.