People who are familiar with cryptocurrencies and crypto industry, in general, may find it hard to believe but U.S. lawmakers want to establish a digital dollar. Last year, Facebook’s CEO Mark Zuckerberg had to defend the digital currency project Libra.
However, this time cryptocurrencies have the potential to gain recognition from the U.S. lawmakers at least from some of them. Recently, House Democrats presented a very-forward looking stimulus package. According to their proposal, the U.S. should create a digital dollar.
Nancy Pelosi is the U.S. Congress House Speaker. She presented a document called “Take Responsibility for Workers and Families Act”. Moreover, another document also supports this idea.
Chairwoman Maxime Waters of the Financial Services Committee introduced the “ Financial Protections and Assistance for America’s Consumers, State, Businesses and Vulnerable Populations Act”.
It is worth mentioning that both of the acts include the digital dollar as well as the establishment of “digital dollar wallets”. The purpose of this cryptocurrency is to deliver economic stimulus payments to U.S. citizens.
Digital dollar and U.S. economy
Let’s have a look at the bill and how it will change the situation. According to this bill, a digital dollar is a balance expressed as a dollar value consisting of digital ledger entries. Those ledgers are recorded as liabilities in the accounts of the Federal Reserve Bank or an electronic unit of value, redeemable by an eligible financial institution.
The Board of Directors of the Federal Reserve System to determine which financial institutions fall under this category.
The Coronavirus outbreak created a lot of problems for the U.S. economy. In this situation, cryptocurrency may soften the impact of the outbreak.
The idea to create a digital currency is not new, but the U.S. has the ability to become the leader if Congress would approve this bill. The Crypto industry is evolving and the digital dollar may become another step forward in this direction.