Witnesses Support Stablecoin While US Senate Holds Hearing On Digital Dollar

Jyoti  |  Jun 30, 2020

The US Congress would again bring up the idea of the digital dollar in a hearing on ‘The Digitization of Money and Payments’, which is scheduled on June 30.

This hearing would be held by the US Senate Committee on Banking along with Housing and Urban Affairs. Although some of the details regarding the hearing has been revealed, the witnesses indicated that the members would discuss central bank digital currencies (CBDC) and stablecoins.

Witnesses Testify To Create Novel Tokenized System

The witnesses revealed the details are the former Commodity Futures Trading Commission (CFTC) Chair J. Christopher Giancarlo, the co-founder and CEO of Paxos Charles Cascarilla and the Visiting Professor of Law at Duke University, Nakita Cuttino.

Recently the subcommittee also hosted a hearing with the House Financial Services Committee, which held a discussion on financial inclusion and efficient and quick way of sending relief funds to the US residents. It is being believed that the new hearing held by the US Senate would step on the similar grounds of the previous one.

At the same time, to develop a novel tokenized system, the witnesses have called for tried-and-proven alternatives.

Cuttino Raised Questions On CBDC And Stablecoin Business Model

Cuttino has written opening remarks stating that although some of the US residents might shift towards the digital banking and payment systems, there are also some low-income US residents who would choose bank transactions.

While claiming that digital systems have some drawbacks too, the pre-written letter further stated that in the US out of 5 citizens 1 does not everyone have smartphones which restrict that person from using digital banking services. Also, around 10 percent of the citizens do not own an alternative internet connection at their homes.

In the opening remark, Cuttino raised questions on CBDCs and stablecoins business model.

Cascarilla also addresses his concern through an opening testimony. He said that in recent times banks only have a limited time period and accessibility.

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