24 03 2020 USA
‘Digital Dollar’ Stripped From Latest US Coronavirus Relief Bill
Mar 24, 2020 at 14:15 UTC
Updated Mar 24, 2020 at 20:44 UTC
House Democrats' latest version of the "Take Responsibility for Workers and Families Act," revealed late Monday, does not contain any language around a "digital dollar" in its section on direct stimulus payments.
The lawmakers introduced the bill last week, envisioning a digital payment system* organized by the Federal Reserve and its member banks to directly send these funds to U.S. residents to assist them with expenses during the COVID-19 mitigation measures, which have already resulted in massive unemployment and a potentially severe recession.
In the latest 1,404-page draft, U.S. residents would receive $1,500 per person, though individuals with an income greater than $75,000 and couples with an income greater than $150,000 would have to repay the funds.
The section detailing the payments, which starts on page 1,090, appears to be less specific on how these payments would be sent to individuals than previous versions have been.
While the draft bill introduced by Speaker of the House Nancy Pelosi (D-Calif.) on Monday no longer includes any language around a digital dollar, a separate bill introduced by Rep. Maxine Waters (D-Calif.), titled the "Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act," still mentions the digital dollar.
The language is expected to be removed from that bill as well, according to a source familiar with the matter.
US Senate Floats ‘Digital Dollar’ Bill After House Scrubs Term From Coronavirus Relief Plan
Mar 24, 2020 at 15:59 UTC
Updated Mar 24, 2020 at 16:28 UTC
The bill, introduced by Ranking Member Sen. Sherrod Brown (D-Ohio), is not proposing a crypto dollar but a digitized version of the existing dollar, a process advocates including former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo have called for to maintain U.S. financial hegemony.
According to the draft, the digital dollar will be “dollar balances consisting of digital ledger entries recorded as liabilities in the accounts of any Federal Reserve bank.”
The bill even notes that such wallets should be branded as “FedAccounts.”
Like a pair of draft bills in the U.S. House of Representatives, the proposed digital dollar would be operated and maintained by the Federal Reserve (the U.S. central bank). The Fed would be responsible for maintaining the digital wallets to support the funds, on behalf of individuals.
Federal Reserve member banks could create a “pass-through digital dollar wallet,” which would hold a person’s share of a pooled reserve balance that the member bank maintains at any Fed bank.
“Each member bank shall establish and maintain a separate legal entity for the exclusive purpose of holding all assets and maintaining all liabilities associated with pass-through digital wallets,” the bill states.
States might also designate some non-member banks to offer these wallets.
The House draft bills mentioned a digital dollar as one potential method for distributing relief funds to U.S. residents during the ongoing coronavirus outbreak. Unemployment numbers have spiked as social distancing and “shelter-in-place” orders have cut sharply into retail revenues.
However, the Senate version appears to exist independently of any such relief.
* House Stimulus Bills Envision ‘Digital Dollar’ to Ease Coronavirus Recession (Updated)
Mar 23, 2020 at 21:05 UTC
Updated Mar 24, 2020 at 14:46 UTC
does not include the "digital dollar" section. A new version of the "Take Responsibility for Workers and Families Act," shared late Monday,
Proposed legislation meant to shore up the U.S. economy during the coronavirus pandemic includes a recommendation to create a digital dollar.