New Coronavirus Stimulus Bill In Congress Creates US Digital Dollar

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Meanwhile, Chairwoman Maxine Waters of the Financial Services Committee has also introduced a separate bill called "Financial Protections and Assistance for America's Consumers, States, Businesses, and Vulnerable Populations Act (H.R. 6321)".

An early version of the 'Take Responsibility for Workers and Families Act,' introduced by House Speaker Nancy Pelosi also included a digital currency distribution mechanism, but it was removed in the final version, Forbes reports. The Australian dollar fell to 0.5792 US dollar from 0.5806 dollar.

The text defined the term "digital dollar" as one of two things: 1) "a balance expressed as a dollar value consisting of digital general ledger entries" and 2) "an electronic value unit that can be redeemed by an approved financial institution". "The Fed would be responsible for maintaining the digital wallets to support the funds, on behalf of individuals".

Central bank digital currencies have been a hot topic among central banks since the introduction of the Facebook-led digital currency project Libra last summer, which "really lit a fire" under the development of a digital dollar, Fed Chair Jerome Powell said February 20 in a House Financial Services Committee meeting. Pelosi said House Democrats will introduce their version of the stimulus package to respond to the coronavirus, offering an alternative to the bill now under discussion in the Senate. Member banks include those banks that are members of the Federal Reserve and regulated by the Fed. Libra was, to many lawmakers, a threat to the USA dollar and sovereign currencies globally; it also gave China the impetus to create and deploy its digital yuan, which signaled the very beginning of a global digital money war against the dollar at the end of past year.

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.

States might also designate some non-member banks to offer these wallets. She has recently started a new initiative in the USA called Project New Dawn to ensure the unbanked and underbanked receive economic stimulus payments.

The bills note that the payments could, "otherwise" be made by check. That would be approximately $100B underutilized of stimulus for lower income householders.

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