Former CFTC chair says the U.S. not moving fastly to develop CBDCs

The former CFTC chairman shared his stance on the CBDCs development by the US authorities and claimed that the US is not moving fast toward the development of the CBDCs. 

In the present time, almost all the countries’ central banks are working in the development of the Central Bank Digital Currency ( CBDCs) to modernize and advance the traditional financial system. Recent activities and statements by the US authorities showed that they are not much interested in CBDCs development, they are only thinking and doing paper research with slow speed. 

On 17 November, Tim Massad- former chairman at Commodity Futures Trading Commission (CFTC)- on the Joint Economic Committee on the role of digital assets in government, said that the United States government is too slow toward the CBDCs development. 

According to Tim, If the US wants to modernize the existing traditional payment system then they needed to develop CBDCs fastly. And the traditional system of the US is ‘expensive’ and ‘slow’. To solve these issues, the US can use CBDCs, however, there are some big challenges because of the CBDCs adoption. 

Tim took the reference of the USDT (Stablecoin) and said that people are using USDT to move the funds from one exchange to another. And this is a good example, that is why the US needed to modernize its traditional financial system. 

Further, Tim said that Stablecoins is a better option for payment purposes but there are many risks. In particular, there may be chances that insured funds may not be invested in a better asset by the stabelcoins issuer companies. 

Tim suggested restricting the Stablecoins issuer companies to prohibit making loans so that stablecoins companies don’t need to deposit insurance. 

“CBDCs, stablecoins and digital assets generally are often cited as a means to achieve greater financial inclusion, and we should consider their potential for doing so”.

Tim said that we need to evolve with these things with a better way of adoption to improve the financial services. 

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