Published: Thu, March 26, 2020
Markets | By Otis Pena

Democrats consider 'digital dollar' in coronavirus bailout package

Democrats consider 'digital dollar' in coronavirus bailout package

The bill defines the digital dollar 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". "That bill, the "Financial Protections and Assistance for America's Consumers, States, Businesses, and Vulnerable Populations Act, ' would empower the Federal Reserve - the central banking system in the USA - to put money into Americans" hands quickly with a new Fed-backed digital dollar system". The bill would demand big federal reserve banks and other financial institutions to distribute digital wallets to provide economic stability to U.S. citizens and businesses in this time of need.

The dollar fell broadly on Tuesday after the U.S. Federal Reserve on Monday committed to buy an unlimited amount of bonds and as investors were optimistic the American government would pass a stimulus package to offset the economic impact of the coronavirus pandemic.

Coley also stated that digital currencies also remove the need for people to go to the bank to cash a check thus aiding social distancing and self-quarantining efforts. However, it is still not guaranteed that the digital dollar will make it into the final bill.

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Chloe's aunt wrote: "My attractive , kind hearted 21 year old niece Chloe has passed away from Covid-19". The country's existing stock of about 5,000-8,000 ventilators is inadequate if cases jump as predicted.

It's worth noting the bills don't mention cryptocurrency projects, nor do they mention the use of a decentralized ledger. However, the widescale implementation of Central Bank digital currency (CBDC) will take time and careful coordination between the government and private sector stakeholders.

Carmelle Cadet, Founder and CEO of EMTECH, a modern central bank technology and services company, is a technology provider in the worlds first live retail CBDC with the Central Bank of Bahamas called the Sand Dollar.

"While we think that most currencies will eventually regain much of the ground that they have recently lost to the USA dollar, we don't expect that process to start until the pandemic has clearly passed its worst", Oliver Allen, assistant economist at Capital Economics, said in a report. That would be approximately $100B underutilized of stimulus for lower income householders.

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