Will Coronavirus Stimulus Bills Introduce a Digital Dollar?

March 26, 2020, by Maayan
To compensate individuals for COVID-19 shutdowns, the United States may introduce a digital dollar, as described in several new bills.

Will the United States Introduce a Digital Dollar?

Lawmakers in the United States have made several proposals that could potentially introduce a “digital dollar” issued and operated by the Federal Reserve.

According to the stimulus bills in question, the digital currency would be distributed to individuals as a response to Coronavirus-related unemployment and layoffs.Initial proposals suggest giving $2000 to adults and $1000 to minors on a monthly basis.

Eligible recipients would access the dollar through traditional banking systems, or through post office ATMs if they do not have access to a bank account.

Is It Bitcoin?

The digital dollar is not a blockchain-based cryptocurrency , but it relies on similar technologies.

Namely, it relies on a digital ledger and digital wallets, much like Bitcoin.

However, the digital dollar would be centrally controlled by the U.S. banking system. This makes it quite different from Bitcoin’s decentralized ledger and peer-to-peer network.

Regardless, the proposal and other stimulus efforts have had a seemingly positive effect on the overall crypto market: on March 24, Bitcoin’s price rose from $5700 to nearly $7000.

Will It Really Happen?

The digital dollar was originally part of two stimulus bills drafted by the Democratic Party.

Though it has since been removed from one of those bills, it has also been added to a third, separate bill that is exclusively dedicated to the digital dollar.

However, none of the bills have actually been passed yet.

This means that it is far from certain that the U.S. will introduce a digital dollar in practice.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.