Crypto industry leader and legal expert discussed the impact on data protection the central bank’s digital currencies (CBDCs) during the Money Re-Imagined panel as part of the virtual event “”Consensus: distributed “ this May 11th.
Lawrence Summers, former United States Treasury Secretary and former World Bank chief economist, argued that the current Fiat currency system raises privacy concernsin the expectation that a CBDC should try to enable larger supervisory capacities.
The current monetary system has “a lot of privacy”
Summers argued that Supporting the multi-million dollar anonymous movement should not be a goal of fiscal policy:
“Of all the major freedoms, the ability to hold, transfer, and do multimillion-dollar amounts seems to me to be one of the least important freedoms that governments should preserve. […] Central bank digital currencies are about improving competitive conditions for smaller and smaller participants and making it more difficult for anonymous forms of financing to thrive. “
The legislator is responsible
Caitlin Long, a blockchain-blockchain adoption lawyer in Wyoming and founder and CEO of Avanti Bank Trust, A future bank that provides services to companies operating in cryptocurrenciesPrivacy and anonymity issues are often discussed in the debate about digital currencies.
Long argued that too The financial sector is overloaded with regulationswhat that requires Commitment to people’s private informationand reaffirmed that many financial institutions are forced to comply with legislation that they disagree with.
Digital Dollar enables “differentiated” data protection functions
Christopher Giancarlo, director of the Digital Dollar Project and former chair of the U.S. Commission for Futures Trading (CFTC), said that a government-issued digital currency offers ways to encrypt privacy differentiated from individual rights that are in line with the needs of government supervision.
“Reaching the balance of privacy” it should be one “Design imperative” Giancarlo argued for every digitized Fiat currency.
Giancarlo argued that The goal of a digital dollar should be to create a currency Make it the public’s preferred monetary unit and emphasize that the design of a digital dollar initiative needs to be informed through intense public debate.
Data protection issues are different in every culture
Sheila Warren, director of blockchain and data policy at the World Economic Forum, gave a detailed description of data protection issues related to the digitization of fiat currenciesand underlines the importance of socio-political particularities in different countries.
Warren emphasized the unique and diverse cultural, economic and political contexts in which digital currencies will emergeon the grounds that the discourse on data protection concerns differs significantly between different societies.
CBDCs and private digital currencies will converge
Dante Disparte, vice president of the Libra Association, argued this A variety of private and digital currencies will serve the public betterOr you can allow users to use the protocols that best suit their needs.
Disparte added that the goal of digital currency initiatives should be more “optional” and described the current lack of monetary options as creating vulnerabilities that led to the current economic crisis