LEARN

[Explanation] A Digital Asset Bill of Rights

Good morning. This is Fennec.

On the Atlantic Council’s GeoEconomics Center blog on October 1, 2021, President and CEO Michael Greenwald contributed an article on A Digital Asset Bill of Rights.

As Mark Carney, former governor of the Bank of England and the Bank of Canada, remarks in his article, the boundary between staple coins and CBDCs is unclear at this stage.

The Bill of Rights for Digital Assets is an international attempt to clearly formulate the ambiguities in the definition of digital assets and the rights associated with them.

It’s kind of difficult.
What does this have to do with Arai-san?

It has something to do with Alai-san and everyone else~.
Read on, and you’ll get some idea of what the future holds.

A Digital Asset Bill of Rights

The template for the Bill of Rights created by the G7 looks something like this.

  1. The right to remain separate from harm caused to society from digital assets (money laundering, etc.).
    This includes the establishment of a Digital Asset Framework modeled after the Financial Action Task Force.
  2. The right to be left alone (privacy).
    This includes the creation of privacy safeguards for consumers to protect confidential information
    .
  3. The right to have access.
    This includes the prioritization of financial inclusion for financial services at low rates that all consumers can access.
  4. The right to be informed on good computer hygiene and protection from cyber incursions.
    This includes a public and private sector partnership to deal with national security instances where illicit actors use digital assets to deploy ransomware. 
  5. The right to be educated.
    This includes an education campaign on digital assets for schools, industry, and non-profits to create more pockets of innovation.
  6. The right to set standards.
    This includes the creation of a Central Bank Governor Working Group across like-minded countries (United States, European Union, New Zealand, Japan, and Australia) to create a digital asset Bretton Woods.

What’s FATF?

It’s an international organization that prevents money laundering and funding of terrorists.
Countries and regions, including the G7, are participating in a mutual review of each country’s efforts.

I don’t even know what Bretton Woods is.

I think you mean the Allied Monetary and Financial Conference held at Bretton Woods in the United States after World War II.
The decision to introduce a fixed exchange rate system based on the U.S. dollar and a gold standard, in which the value of money is backed by the precious metal gold, led to the stabilization of the world economy.

We already have rates for legal tender and virtual currency, so why set another standard?
Could it be that the G7 is trying to bring back the gold standard?
Will Basel III turn paper gold back into its original piece of paper?

I don’t know about that~.
Maybe they’re thinking of a way to do that, too.

Atlantic Council

The Atlantic Council is a U.S. think tank headquartered in Washington, D.C., that operates on international security and global economic prosperity.

The Atlantic Council, which is also a member of the Atlantic Treaty Association, supports NATO (North Atlantic Treaty Organization) in accordance with the principles of the North Atlantic Treaty’s protection of liberal democracy.

The GeoEconomics Center is a division of the Atlantic Council, which conducts economic, financial, and foreign policy work to shape the global economy.

I know the GeoEconomics Center!
He’s a CBDC Tracker!

Postscript

The reason the U.S. is trying to lead the way on the Bill of Rights is that China has made great strides in the digital arena in recent years.

This template, created by the G7 members (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States), is both an equal guideline for countries to use and a preventive measure against the spread of unfair rules by the initiative of one powerful country.

This Bill of Rights is just a template and will be changed flexibly according to the situation.

You’ll have to pay a little more attention to what’s coming up.

Why did you come so close to me? It is cramped.