Coronavirus Stimulus Plan Cites “Digital Dollar”

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Part of America’s plan to tackle the global impact of the coronavirus could include a ‘digital dollar’ to rival the digital yuan if the Democrats get their way. Nancy Pelosi’s two suggested recovery packages both contain mentions of a digital form of currency which would both speed up the distribution of any funds to households and make it cheaper, and could also represent congress’ way of competing against Facebook’s Libra token.

Coronavirus Stimulus Plan Cites "Digital Dollar"

Congress’ Libra Rival?

Speaker Pelosi’s two rescue packages, the ‘Take Responsibility for Workers and Families Act’ and the ‘Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act’, introduced the idea of a digital form of the dollar with an associated digital wallet for each citizen. The bill described the digital dollar as the embodiment of a sovereign stablecoin:

“…A balance expressed 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).”

Congress has not held back in their criticism of Facebook’s Libra token, calling it a challenge to the concept of government-controlled money, while others have warned that the US risks falling behind other countries such as China if they don’t move to digitize the dollar in some form.

Stand Down, XRP Army

Despite seeming somewhat rushed (unless it was already being worked on), Pelosi seems keen on utilizing the current state of emergency in the country and the trillions of dollars being allotted to the recovery strategy as a means of foisting a dollar stablecoin on the public.

Exactly what form this will take is of course yet to be known, but the fact that the government has been anti-Libra since its inception last year and has been actively discussing alternatives behind the scenes, while at the same time watching China and other countries develop their own stablecoins, the US Digital Dollar may finally have its time to shine.

Oh, and it won’t be XRP.