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In a bid to curb the financial impact of the coronavirus pandemic and the ongoing economic impact on Americans, Democrats in the House of Representative are proposing the creation of a digital dollar and digital wallets.
On Monday, Maxine Waters, Chairwoman of the House Financial Services Committee, released draft bill H.R. 6321, which provides financial protection and assistance for Americans affected by the pathogen-induced financial crisis.
The draft bill describes the digital dollar as a redeemable electronic unit of value that recipients of the stimulus package would be able to access through a digital wallet via electronic devices or services.
“The term ‘digital dollar’ shall mean—
(A) a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal reserve bank; or
(B) an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governers of the Federal Reserve System).”
Unlike Bitcoin and similar cryptocurrencies, the proposed digital dollar would not be a decentralized asset. Instead it would be maintained by the central banking system.
Although it remains to be seen how long it would take to develop the digital dollar and whether the proposal can gain widespread support, the proposal has Bitcoin and crypto proponents contemplating a future where digital wallets are the norm.
The U.S. is about to create the "digital dollar" in order to save their own economy. Funds will be stored in "digital dollar wallets" controlled by the Federal Reserve.
Bitcoin will pump so fucking hard.
— Bitcoin Macro (@BTC_Macro) March 24, 2020
The Direct Stimulus Payments for Families section of the proposed legislation directs a monthly payment of $2,000 for adult US citizens who earn less than $75,000 a year, and $1,000 for individuals under 18, as part of an economic relief package.
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Featured Image: Shutterstock/Brandon Bourdages
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