- The U.S. Congress seeks to mark the digital wallet as a ‘Fed Account’ in all promotional materials and bills.
- Federal Reserve will maintain the digital dollar and the member banks on behalf of the country.
- J. Christopher Giancarlo, a senior counsel and one of the key witnesses leads the Digital Dollar Project. He will release the essential technical designs.
Home to many great billionaires in the world, The United States Of America has recently announced hearing over the evolvement of digital dollar to facilitate stimulus payments. The U.S. Congress seeks to mark the digital wallet as a ‘Fed Account’ in all promotional materials and bills. US House of Representatives will hold a hearing to discuss and delve deep into the topic of digital currency as a mode of stimulus payment.
The Scope of Digital Dollar
Stephen Lynch, the chairman of the FinTech working group will preside over a Congress meeting on Thursday to discuss the scope of digital currency and inclusive banking during the pandemic. Further, Federal Reserve will maintain the digital dollar and the member banks on behalf of the country. Few of the congressmen are of the opinion that it is a benefit delivery technique rather than just a digital currency for the central bank. They aim to strongarm the economy with protective equipment and sufficient emergency medical supplies for various adversities.
The Congressmen have adequate blockchain technology knowledge to see the hearing through without any obstacles. Moreover, as the unemployment rate has plunged to an all-time low post the 2008 financial crisis, there will be a provision of economic subsidies to the 50 states.
The Course of Legal and Technical Issues
The legal structure of consumer protection, engagement, and privacy issues will be dealt with closely. Initially, it was a part of the CARES Act but did not make it due to technical grounds. However, the experience of the chairman and the Congressmen involved should be enough for the topic to pass the hearing. Essential technical designs have also been released by J. Christopher Giancarlo, a senior counsel and one of the key witnesses who leads the Digital Dollar Project. He has explained the ‘Champion Model’ wherein a brief understanding of blockchain technology can be obtained.
Thus, these are major developments towards a speedy disbursement of stimulus checks in the wake of the COVID-19 pandemic. The digital dollar will look to overcome the liquidity challenges faced in the physical exchange of dollars among different hands and a step towards economic diversity.