Mentions of a “digital dollar” in a coronavirus relief bill…It was in the draft bill-now it’s out


hello folks you have reached the cryptocurrency portal and today we’re gonna go over a little information about the digital dollar and how a house financial services me wanted to create a new digital dollar and try to put it in the latest stimulus bill that’s going through Congress in the United States as we all know we have this coronavirus epidemic in the entire world in in the United States where I live they’re trying to do a stimulus package through their the Congress which is the legislative body that oversees the United States it’s going through the house and currently the Senate and eventually the president will hopefully sign a bill to kind of stimulate the economy after the economy has been just decimated from this virus because of all the shelter-in-place processes the individual states have put together upon guidance from the federal government what I think is interesting from this is that in one of the draft bills there was they were trying to create a new to do digital dollar now you’ll see right here first off in the update here the final version of the economic stimulus package offered by speaker Pelosi the House Democrats no longer includes the u.s. digital dollar proposal however the language as proposed by chairwoman waters of the House Financial Services Committee still contains this language links to the original and updated stimulus bills with the latest language are at the end of the story so the point of this is they thought about it folks it’s not in this version but it’s gonna come back so they’re definitely all thinking about it so let’s go through this together as the markets continued to drop and the United States looks to Congress for an agreement on a massive stimulus package to save the economy from impacts of the corona virus pandemic the newest offer by House Democrats includes a very forward-looking kind of stimulus the creation of a digital dollar which is not in it now and the establishment of digital dollar wallets now the key to this is and it’s not in the proposed bill now but look at what they were trying to accomplished this is going to get traction in the future because the reality is whatever happens out of a stimulus package there’s no efficient way to really get money in the hands of citizens quickly they can create checks send them out there’s logistical issues there you have the print the checks send them what database do you use is just the IRS database or as people already receive some kind of government assistance is a block grants who knows but eventually people are in need their own individual personal digital wallets in order to get these types of benefits so continuing and again this is not in the final bill but by reflecting on this you can see where their head set was in what will send shock waves through the cryptocurrency in blockchain industry particularly for those following Central Bank digital currencies around the world this signals the United States is serious is establishing infrastructure for a central bank digital currency so it shows you again they are serious it’s not in this bill but they are serious both speaker Pelosi’s take responsibility for workers families Act and the financial protections and assistance for America’s consumers States businesses and vulnerable populations and the the House Resolution is six three two one if you want to bring it up introduced by chairwoman Maxine Waters of the Financial Service Committee introduce these concepts today which is a couple days ago now as a way of delivering the economic stimulus payments to the United States citizens now think about it this way most people don’t understand the cryptocurrency market they just think of Bitcoin usually as the generic term they don’t understand it however this is something people can get their arms around when it’s explained to them and it created a digital dollar that hey this is a great and efficient way to get money in the hands of people sure this is in times of pandemic but think about in the future as we’re trying to actually get benefits to people in an efficient way there might be a way to get it to people more efficient and this people understand and again it’s not in this bill but they were thinking about it so it’s gonna come back in some form in the future when all of this calms down the bill establishes a digital dollars not in the bill but this is where they work which it defines as a balance Express as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve Bank or an electronic unit of value redeemable by an eligible financial institution as determined by the board of governors of the Federal Reserve System additionally a digital dollar wallet is identified as a digital wallet or account maintained by a Federal Reserve Bank on behalf of any person that represents holdings an electronic device or service that is used to store digital dollars that may be tied to a digital or physical identity a mandate also requires all quote member banks establish a pass-through digital wallet digital dollar wallet to all customers eligible for the stimulus now member banks include those banks that are members of the Federal Reserve and regulated by the Fed additionally a non-member State Bank those that are not members of Federal Reserve and regulated by the FDIC could opt in to offer pass-through digital dollar wallets as well the Federal Reserve banks themselves would also make it available a digital dollar wallet to any United States person eligible for payments as well additionally the United States Postal Service would aim to help unbanked individuals and those without proper ID to establish their identity we provided a digital dollar account it would set up ATMs for customers to access their funds so think about what they were trying to accomplish wasn’t accomplished but it’s gonna come back folks and you can see all the tentacles of it of what they were trying to do the post office is gonna get involved trying to get more people that are unbanked involved into the system so public interest groups weigh in so Dan gore fine founder and thin tech advisory firm Gattaca horizons in former chief innovation officer at CFTC as well as a founding director of the digital dollar project and just so you know I’ve actually done some videos on the digital dollar project which is a non-profit and I’ll actually link in the comment section below so you can check out that video as well so continuing about the digital dollar project stated to Forbes it is worth exploring testing and piloting a true United States dollar CB DC and broader digital infrastructure in order to improve our future capabilities and resiliency but it’s also important that this effort not delay the government from deploying critical emergency funds using existing channels during the crisis while the crisis underscores the importance of upgrading our financial infrastructure broadly implementing a cbgc will require time thoughtful coordination between the government and private sector stakeholders it’s I mean it’s so true timing wise maybe this is the time because you need to get money out quickly with the current infrastructure even though it’s inefficient you don’t want to be starting a whole new process and government structure which people don’t understand it could kind of jam it up so I think that’s good but they were talking about this folks so this is incredible and very important so Kemal cadet founder and CEO of mtech a modern central bank technology and services company is a technology provider in the world’s first live retail CBBC with the central bank of Bahamas called the sand dollar she has recently started a new initiative in the United States called Project new dawn to ensure the unbanked and underbanked receive economic stimulus payments pointing to an FDIC report in 2017 that identified 63 million people that are unbanked and underbanked in the United States that’s amazing I would have never guessed it’s that high with with three hundred and twenty to thirty million people that’s about a quarter of the people are unbanked okay if checks are the form payment the stimulus not gonna reach many of them that would approximately a hundred billion underutilised of stimulus for lower income household householders that’s I mean it’s great so long term in order to help the unbanked and the people are probably the most vulnerable this is a great way to get them the funds they need so this is just the text of the bill we’re not gonna kind of go through that so I just wanted to go over that with you folks cuz I you know I thought was amazing it was almost in this bill it’s not but you can see where their headset is for the long-term kind of viability of this so it’s gonna happen folks it’s definitely gonna happen so here this other article it also says digital dollars strip from latest United States coronavirus relief bill and here it says mentions of a digital dollar and a corona virus related relief bill before the United States Congress one of the two chambers Congress has been scrubbed so just talks about the same thing again and here it says boost for Bitcoin US lawmakers considering digital dollar to stimulate the economy so in a bid to curb the financial impact of the corona virus and pandemic and the ongoing economic impacts on Americans Democrats in the US House are proposing again it’s not in the current bill the creation of the digital dollar and digital wallets so let’s check this here the term digital dollar shall mean a a balance expressed as a dollar value consisting of digital ledger entries that record as liabilities in the accounts of any Federal Reserve Bank or be an electronic unit of value redeemed by an eligible financial system institution as determined by the Board of Governors of the Federal Reserve System and so lastly unlike Bitcoin and similar cryptocurrencies that propose digital dollar would not be a ste centralized asset instead it would be maintained by the central banking system of course it would be so let’s kind of continue along so this is pretty interesting from by Nancy US as CEO Katherine Cooley who used to work for Ripple actually that’s in the it says right here the United States should use stable crypto assets to power coronavirus stimulus as finance us CEO Katherine cool again it’s not in the final bill but it’s interesting to see where people are lining up when all this happened so US lawmakers were working on an economic stimulus package that would in part send checks to citizens to stem the economic fallout from novel coronavirus all the measure aims to be timely the proposal brings up on the pitfalls of traditional financial systems it moves money as a sales pace so that’s really the key why I wanted to have this video today everybody is realizing everyone knew it but this kind of puts it into perspective in the moment how we just can’t get money to people quickly it just moves money in the snail’s pace so it’s kind of just highlighted it it’s not in the final bill but they’re gonna come back to this and say an after-action report they’re gonna say this is ridiculous what we had to go through we couldn’t once they even pass the bill it’s gonna be a couple weeks before people actually get money in their hands so here a u.s. senator Elizabeth Warren who was running for president like her or hate her I mean she she’s on the forefront of what’s going on in a new interview on MSNBC United States senator Elizabeth Warren from Massachusetts stresses the difficulty involved in distributing funds and her quote is this is actually a real concern having to build a structure to be able to figure out where the money goes and to keep track of where it goes and what the repayment obligations are is going to be complex that just screams blockchain and digital dollar folks finance us chief executive Kathryn Cooley says cryptocurrency offers a viable solution in Cooley penned an article at coin Dez advocating the use of crypto the stable coins to distribute funds stable coins are digital assets pegged to traditional assets such as the US dollar and can be easily interchanged for US dollars via crypto exchanges Cooley also says that digital assets offer many advantages over cheques especially in a time of crisis and she says digital assets could be put in escrow to be released at a certain time once the asset is addressed to the recipient that person can send the money to themselves or others without any fees or a waiting period providing you faster solution than traditional banks and I also thought about this it’s if somebody a lot of these stimulus checks are going to either unbanked or or people on the lower economic strata sphere and they have concerns that you know they can’t get to a bank they may not have transportation it’s just tough for them to do all of that I mean if they have that check on their hand they have to get transportation and get someone to taking or take a bus to a bank to try to cash it and they probably they have to spend money to get the check cashed imagine if it was on the blockchain they could get the money quicker and they don’t have to spend all that time to go get it actually cashed the crypto exchange executive points out that every American even those without a home and mailbox you can receive payment critics however argue that not everyone is tech savvy enough to understand how to store send and receive stable coins and that the learning curve is too great very true and that that’s probably good while it wasn’t in this bill you’d probably gum it up even more but if we could have a serious discussion in the United States about how inefficient that system and then just go about educating people and maybe even given people a hundred bucks in one of these wallets and this go out there and test it and get that out there so people start feeling it out and there are also plenty of citizens average Grandma and Grandpa’s who do not necessarily own or know how to operate a smartphone laptop or other digital device that powers a digital wallet that’s true we just need to educate them meanwhile Democrats in the house are considered a proposal it would create a digital dollar at digital wallets to speed up the process of sending money to citizens again that was stricken from the bill it’s not happening but they were talking about it so since we’re on this general topic check this out the IMF weighs the pros and cons of a central bank digital currency so the Momentum’s continuing in the world I mean obviously we were talking about the United States and what they were trying to do with their stimulus bill the IMF in an International Monetary Fund they’re talking about it so the concept is getting momentum worldwide and again when you have an action after action report after the coronavirus dies out we get back to normal life in one month or six months or whatever it is I hope it’s sooner than later that people are start thinking about all of this and then the whole world doesn’t be started thinking about this so in a recent keynote speech to the London School of Economics International Monetary Fund deputy managing director tau Chang briefed the positives and negatives of a central bank digital currency cbgc he pointed toward greater efficiency in lower-cost asuras associated with the CB DC which we were just kind of highlighting with the stimulus package in the United States in some countries the cost of managing cash can be very high on account of geography and access to payment system may not be available to the unbanked rural rural or poor population so I mean really think about this making this more efficient and going to a digital dollar in some capacity really helps out the unbanked rural in the poorer populations now they again they may not have access to two iPhones or whatever the technology is you’ll have to solve that but that’s easier to solve than trying to get money to them over weeks and days he hits on other positives the IMF director touched on increased Financial Inclusion CB DC may provide a public digital means of payment without requiring individuals to hold a bank account he also noted several other benefits of a cbgc including stability in strengthened monetary policy in an addition Jing said a CBC could act as a combatant against other digital assets he said here’s the quote a domestically issued digital currency backed by a trusted government denominated in the domestic unit of account may help limit the adoption of privately issued currencies such as stable coins which may be difficult to regulate and pose risks to financial stability in monetary policy transmission so let’s go through the negatives though the IMF official mentioned the negative side of CB DC as well he stressed the importance of a proposed CB DC structure in limiting potential risks the director said that such an asset could steer customers away from banks as well as strain central bank balance sheets he also included that the central bank could incur risks and expenses from the endeavor offering CBC could be very costly for central banks and it could pose risks to the reputations he said adding and here’s the quote offering full-fledged CBC requires central banks to be active along several steps of the payments of value chain potentially including interfacing with murrs building front in wallets picking and maintaining technology monitoring transactions and being responsible for AML and CFT issues and that’s anti-monitor laundering stephanie the chang added that hacks and other faults could impede such operations leading to a black mark on the bank’s trustworthiness the official mentioned as a potential hybrid solution called a synthetic CB DC or s CB DC such an asset would involve collaboration between central bank and private sector the private sector would issue coins fully back to a central bank reserves under the supervision of the central bank CB DC’s have also been a hot topic for a while now Sweden started testing a CB DC in February and said several other central banks have discussed the prospect although not everyone is interested in cvtc’s and just so you know I actually did a video about the Sweden CB DC so I will link that in the comment section below so you can check it out let me know what you think alright so let’s go to this next one since we’re just on this topic and it’s floating around Bank of England sights significant change in money and payments presents model of central bank digital currency so the Bank of England issued a 57 page report examining how a central bank digital currency could roll out and perform as a both store value and as a regular form of money powering everyday payments so I just keep bringing up these different articles cuz you can just see the momentum behind this obviously everyone’s so focused on the coronavirus for good reason because we need to get rid of that eradicated and defeat this enemy but all these people are talking about CB DC’s and digital dollars so it’s happening folks the report follows months of discussions by several governments that are reviewing their monetary policies as they explore how to position themselves for the shift to a digital economy traditional government backed money is losing its edge as the most competitive product to store and send value around the world traditional procedures face increasing competition from fin tech companies cryptocurrencies and blockchain based platforms that offer mobile-friendly digital services delivering instant transactions low fees and cross-border transfers them makes me think of ripple because of all their their cross-border success CB DC’s would allow banks to leverage new technology while maintaining controlled the money supply and operating alongside cash in commercial deposits now according to the report here’s the quote a central bank digital currency would be an innovation in both the form of money provided to the public in the payments infrastructure on which payments can be made at the moment the public can only hold money issued by the bank in the form of banknotes only commercial banks and certain financial institutions can hold electronic central bank money in the form of reserves held in the bank’s real time gross settlement service unlike bank notes CBC’s would be electronic and unlike reserves CB DC would be available to households and businesses CB DC would therefore allow households and businesses to directly make payments in-store value use an electronic form of central bank money for this reason CB DC is sometimes thought of as an equivalent to a digital banknote although in practice it may have other features depending on its final design so the Bank of England adds who are interested in CB DC because this is a period of significant change in money and payments although Bank of England has reached no formal decision on launching a CB DC the central bankers say that such a currency would be denominated pounds sterling so you can kind of see the process flow here Bank of England platform model of a central bank digital currency here it is it starts with the central bank core ledger you have the API access the payment interface providers and then of course the end users so we’re kind of kind of wrapped this up according to the bank to develop the illustrative model of CB DC presented above we have thought through its economic characteristics as a new form of central bank money the functionality and technology used to power a cbgc payment system and the possible roles of the central bank and private sector in providing parts of the CBD sea ecosystem although with several opportunities for new types of platforms based on CBD see the authors indicate plenty of risks and here’s the quote if significant deposit balances are moved from commercial banks into CBD C it could have implications for the balance sheets of commercial banks and the Bank of England the amount of credit provided by banks to the wider economy and how the bank implements monetary policy and supports financial stability nonetheless CBD C can be designed in ways that would help mitigate these risks so Mark Carney who’s the governor of Bank of England says efforts to build the CBD see if formalized would require a light touch while also moving forward to address the revolution that shifting consumers behaviour and affecting attitudes towards money that’s a great quote it’s a revolution it’s shifting consumers behaviors and affecting attitudes towards money all right so let’s wrap up this this article here with this quote it is now time to further to look further ahead and consider what kind of money and payments will be needed to meet the needs of an increasingly digital economy I mean think about that it’s increasingly digital economy there’s no stopping of folks we are in the middle of a revolution in payments banknotes the banks most accessible form of money and being used less frequently to make payments and the same time thin tech firms have begun to alter the market by offering new forms of money and new ways to pay with it these developments create new opportunities present some new risks and raised a number of profound questions for the bank so just more and more incredible information about the the what’s happening in this economy and what’s happening with digital dollar what’s happening with CB DC’s it’s just amazed so check this out folks just continuing Hawaii is testing digital currency plan no money transmitter license is required alright let’s check this out together Hawaii is launching a pilot program for a gentle curve see the collaborative initiative is backed by the Department of Commerce and Consumer Affairs the Division of Financial Institutions dfi and Hawaii Technology Development Corporation so it’s just more and more states countries etc are just kind of dipping their toe in the digital dollar and CBD seas and everything above the digital currency Innovation Lab is a two-year effort designed to explore the use of a digital currency in the real world digital currency issuers will be able to conduct business in Hawaii without having to obtain the a state money transmitter license during the effective period of the pilot program legislators will examine data from the trial to shape informed decisions about the practicalities of implementing a digital currency in the future the state will tap various companies for the pilot tests says iris Akita commissioner of financial institutions and the quote is deify is leveraging the statutory authority to provide an innovative way to introduce digital currency issuers into the state of Hawaii while ensuring the safety of our consumers by acknowledging digital currencies as a transmission vehicle of the future we will be able to craft legislation that is conducive to the development in the in Hawaii now Lyn Higashi acting executive director of H TDC is pushing for Hawaii to become a leader in the digital economy by being an early adopter and the quote is by spearheading the digital currency Innovation Lab Hawaii can position itself on the forefront of financial technology and potentially reap the economic benefits that accompany the leadership stance taken so just more and more incredible for momentum in the digital space cryptocurrency space blockchain space all these countries and stay and the Congress just dipping their toe in just exciting developments incredible what’s going on in the world right now with the coronavirus but as when we get out of this and we roll out of this in the future you can tell that a lot of people are interested in the digital dollar and CB DC’s and on a go-forward basis how can we do this more efficient so thank you so much for tuning the cryptocurrency portal I deeply appreciate it and if you like this video please smash that thumbs up button it really helps me out helps out the channel helps out with the Google and YouTube algorithms and all that I tend to do videos every day so if you like my videos smash the the bail notification button so you’ll be notified whenever I upload another video and if you already subscribe to the channel thank you so much I really appreciate you and deeply appreciate it and if you’re not a subscriber yet hopefully I’ve shown you value and I’d be honored with your subscription to the channel and as always if you have any comments about this video or anything in the crypto space please leave in the comments section below and I’ll respond to it as I always love responding to all comments and just getting a little discussion going in the crypto space so thank you again for tuning in to the crypto currency portal and I’ll talk to you real soon [Music] you

20 Comments

Add a Comment

Your email address will not be published. Required fields are marked *