New Coronavirus Stimulus Bill In Congress Creates U.S. Digital Dollar

[hugeblack]

The new bill requires that "member banks" create a "digital dollar wallet" for all eligible clients and "non-member" government banks - those that are not members of the Federal Reserve can also participate in providing digital wallets in dollars.
The US Postal Service will also aim to assist individuals without bank accounts by setting up ATMs for customers to access their money.

The bill establishes a digital dollar, which it defines as ‘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 ... an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).’ Additionally, a digital dollar wallet is identified as ‘a digital wallet or account, maintained by a Federal reserve bank on behalf of any person, that represents holdings in an electronic device or service that is used to store digital dollars that may be tied to a digital or physical identity.’

In short, more central methods, while exploiting the capabilities of Blockchain

Read more and soruce --> https://www.forbes.com/sites/jasonbrett/2020/03/23/new-coronavirus-stimulus-bill-introduces-digital-dollar-and-digital-dollar-wallets/#17dfdf494bea

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[Bitum]

If I understand correctly, it has nothing to do with blockchain. You only want to make digital currency. And that is of course regulated and regulated by the state. Well, we'll see what comes out of it. I'm curious

[Darker45]

According to new articles, the latest version of this stimulus bill called Take Responsibility for Workers and Families Act^[1] has removed all mentions of Digital Dollar. The new version of the bill, which is 1,404-page long, scrapped the chance of every American to open a free bank account by way of a digital dollar wallet which could be used to "receive money, make payments, and take out cash.”^[2] This would have made things a lot easier for them as compared to the old way of receiving it through checks. However, members of both houses are still pushing for it.  

[1] https://appropriations.house.gov/sites/democrats.appropriations.house.gov/files/COVIDSUPP3_xml.pdf
[2] https://cointelegraph.com/news/in-us-covid-19-stimulus-bill-hope-not-lost-for-digital-dollar

[hatshepsut93]

If I understand correctly, it has nothing to do with blockchain. You only want to make digital currency. And that is of course regulated and regulated by the state. Well, we'll see what comes out of it. I'm curious

You are right, it's not about crypto/blockchain, and I hope crypto community won't misunderstand it as such, because so often people think that digital currency = crypto, I've seen some people going as far as to think that virtual currencies from online games are crypto.

And the US' banking system seems to be lagging behind in digitalization, so maybe this bill isn't a bad thing.

[Meowth05]

Damn, they are making a digital currency to control the circulation of physical currency. I think this will be an ephemeral solution for the current crisis. I hope that this will be a threat to btc if this plan will ever be successful.

[Sadlife]

I dont see the difference with Digital dollar and with paypal. The only difference is instead storing it with an sql database they're putting it to a blockchain ledger. Which has no difference at all, it involves the same process only that instead doing it off the grid they're putting your money online making it much more prone to hacks along with your entire data in it.

Also what happened to Tether, so it wasn't the Digital dollar ?

[jseverson]

Also what happened to Tether, so it wasn't the Digital dollar ?

The US Government doesn't control it, so no. That's basically the only difference between a theoretical digital dollar and existing alternatives -- they're not going to accept anything less than full control.

[nosferzd]

A day later, the mention of the "digital dollar" was removed from the bill on stimulation of the coronavirus (more precisely, it was transferred to another bill and safely forgotten). All the same, the United States is not yet ready to switch digital currency, there is no appropriate infrastructure, or the authorities still do not want to switch to digital currencies in the near future.

[Ozero]

A day later, the mention of the "digital dollar" was removed from the bill on stimulation of the coronavirus (more precisely, it was transferred to another bill and safely forgotten). All the same, the United States is not yet ready to switch digital currency, there is no appropriate infrastructure, or the authorities still do not want to switch to digital currencies in the near future.

If even the mention of the digital dollar was removed from the bill, then this step can be regarded in two ways. As far as I understand, the government wants to stimulate the population to use non-cash forms of payments more because this paper money can be a source of the spread of coronavirus for some time.
This step is justified if the United States plans to adopt a separate law on digital financial assets. However, the US needs to seriously think about creating a national stable coin, otherwise its trade rival, China, can go much ahead and catch up with it will be very difficult.

[20kevin20]

~
and I hope crypto community won't misunderstand it as such
~

The crypto community won't. Everyone else will. And we all know the crypto community is way smaller than the rest. We're a minority and we sure as hell won't be able to change shit once they shape up this digital fiat as a supposed "cryptocurrency". It will probably be a system similar to the Blockchain so that as many as possible could be fooled and dragged in their trap. Control, control, control.

[Elpeor00]

It will be the same as chinese digital yuan, an e-wallet, not blockchain based and with nothing to do with crypto
The question is: why a western country needs a ''government's paypal''?
Most likely is just the politicians trying to grab more resources

[abhiseshakana]

If in the end the digital dollar is launched in the United States, this is an indirect impetus for cryptocurrency. When the digital dollar is available and supported by an infrastructure that is spread evenly for transactions using the digital dollar, slowly but surely the authority will withdraw little by little the circulation of the physical dollar.

Indirectly digital dollar can provide education for laypeople about financial technology. In essence, the ecosystem has been educated about digital financial technology and indirectly the presence of crypto which was previously considered a ghost for many laypeople has become something common and does not need to be on the lookout. Simply put bitcoin piggybacked on the digital dollar to educate lay users.

[LazerSMS]

Digital wallet as in... Payscam? Wow innovative

[amishmanish]

If i am reading this right then the concept of "digital dollar" was proposed so that they they do not have to rely on "cheque" for mode of payment to the beneficiaries, particularly the poor who may not even have bank accounts. The explantion of "Digital Dollar" was "an electronic unit of value consisting of a ledger entry with a financial institution". It is just an online representation of the bank balance in your account. That kind of thing is common already in India where there are online wallets like paytm. You can link a mobile app to your bank account and then "recharge" it to spend on grocery shops, mobile recharges without cash. They even allow you to create a "payment bank account" with basic KYC.

So why was this being hailed as some sort of revolutionary thing for a country like US?

All those trillion of dollars being printed will go straight into the pockets of people for use during the time when they do not earn any wages. During the crisis, it'll help keep them going so they can spend on basic requirements. Yet, when all those FMCG companies receive these billions, won't they end up hoarding the unspent money. This would lead to inflation in the long term hitting the savings of the same people. Yet it is hard to imagine that there is an alternate. Some of this could have been avoided if these were targeted subsidies rather than a dole-out for everyone. This is something India is also trying to establish with its billion plus population but has largely been unsuccessful till now.

[fudster]

Its what government do. It doesn't really need to be in blockchain. They need it to be centralized and can be on their control of course. But what difference does it have, something like this already in use like the kind of paypal USD.

I'm anticipating a USD stable crypto backed by government in blockchain so its traceable by anyone. Hard to see a fair government.