If the U.S. does not use a digital dollar, it could lose its technological and financial advantages

Former Commodity Futures Trading Commission (CFTC) chairman J. Christopher Giancarlo said in an interview that countries that have been sanctioned by the West in the past absolutely see CBDCs as a form of statecraft and hope there are ways to avoid that in the future.

A U.S. CBDC would “expand the dollar’s central role in global finance and enable it to compete with confidence in the new digital age,” but would not “support or oppose” sanctions against Russia. I'll leave the geopolitical response to those responsible for it. I think sanctions could drive and accelerate the development of a Russian CBDC and shift parts of the world away from the dollar-based system we have today. This can be worrying.

If the U.S. fails to speed up the development of a CBDC, its competitors could end up dominating the underlying technology used by other countries. It is reported that Giancarlo, co-founder of the Digital Dollar Foundation and a senior advisor to the digital engineering department of Willkie Farr & Gallagher, advocates the establishment of a CBDC to promote American interests and hegemony.