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The House of Representatives of the Democratic Party said that the release of the digital dollar will help restore the economy, and its use will accelerate social payments to citizens
The House of Representatives of the US Democratic Party published a document proposing to use the digital dollar to combat the effects of coronavirus. It is specified that this will accelerate the payment of direct emergency funds to consumers who do not have bank accounts, as part of the economic stimulus plan. Earlier, Treasury Secretary Stephen Mnuchin said US taxpayers would be allocated $ 1,000 per adult and $ 500 per child to minimize the impact of the pandemic.
“Large federal reserve banks and other financial institutions will need to provide digital wallets to individuals and joint tax authorities eligible for direct government emergency payments, which are currently being discussed in the bill for economic assistance,” party representatives wrote.
In the text of the document, the term “digital dollar” is defined in two ways. Firstly, it is a balance expressed in dollars and taken into account in the digital book. Secondly, it is an electronic unit of value payable by an authorized financial institution.
In early February, the US Federal Reserve Service announced that it was working to create a digital currency for the central bank. Jerome Powell, the head of the department, said that no official decision was made to issue a cryptodollar, it was first necessary to understand the benefits, work out a lot of questions regarding cyber threats and consider all possible alternatives.