By: Nate James
Amidst the growing mandates and panic surrounding the Coronavirus outbreak comes a new idea: digital dollars.
The House Financial Services Committee financial stimulus bill proposes the establishment of the “digital dollar.”
As the markets continue to drop and the U.S. looks to Congress for agreement on a massive stimulus package to save the economy from impacts of the coronavirus pandemic, the newest offer by House Democrats includes a very forward-looking kind of stimulus: the creation of a ‘digital dollar’ and the establishment of ‘digital dollar wallets.’ In what will send shock waves through the cryptocurrency and blockchain industry, particularly for those following central bank digital currencies around the world, this signals the U.S. is serious in establishing infrastructure for a central bank digital currency.
Why It Matters:
Such a system would forever change the way the economic system operates.
“It is worth exploring, testing, and piloting a true USD CBDC and broader digital infrastructure in order to improve our future capabilities and resiliency, but it is also important that this effort not delay the government from deploying critical emergency funds using existing channels during this crisis.”
Daniel Gorfine, founder of fintech advisory firm Gattaca Horizons, to Forbes
Nate James writes from Texas.