Lawmakers Stephen Lynch,  Jesus Chuy Garcia,  Ayanna Pressley and Rashida Tlaib introduced a bill called the Electronic Currency and Secure Hardware Act (ECASH Act) that seeks to instruct the Secretary of the Treasury to “develop and issue an electronic version of the US dollar, with a view to preserving privacy and anonymity in transactions.”

According to what was expressed by the legislative representatives, the electronic dollar is conceived as “a bearer instrument that people could have on their phone or on a card, very similar to the bill or menda of the North American country.

The proposal indicates that the electronic dollar would be a system based on tokens and not on accounts, therefore, if users lose their mobile phone or card they would lose their funds, that is, it would be like losing the wallet with the paper money dollars.

The bill establishes that the new electronic dollar will be considered “legal tender and would be functionally identical to a physical greenback.” In addition, legislators affirm that the most suitable government entity for the creation of this financial instrument is the US Department of the Treasury and not the Federal Reserve.

Electronic dollar different from the digital one

In order to know the differences between the proposal for the development of an electronic dollar with respect to the digital dollar that would be developed by the Department of the Treasury, some media consulted the opinion of Rohan Gray, a professor at Willamette University, who pointed out: “the bill is intended to create a true digital analog of the US dollar.”

 “We propose to have a genuine cash-like bearer instrument, a token-based system that has no centralized ledger and no distributed ledger because the dollar has no ledger. It would use secure software and hardware and will be issued by the Treasury,” he explained.

The main difference with other proposals on the digital dollar is that it will be based on “stable currencies or other decentralized accounting tools” and not on blockchain technology.

The university professor considers that this type of system could be of great interest to those people who do not have access to the traditional financial system because they do not meet the requirements such as: maintaining a minimum balance in bank accounts and for people who do not trust banks because they charge fees and freeze funds.

M. Rodríguez

source: infocoin.net

La entrada US lawmakers propose ECASH bill apareció primero en Bitfinance.

The president of the United States, Joe Biden, commissioned various agencies and federal agencies, including the Treasury and Trade Department, as well as the Federal Reserve of the United States, the assessment of risks and benefits, as well as the necessary actions For the launch of a digital dollar.

“My administration grants maximum urgency to research and development efforts of the possible options of design and implementation of a CBDC (centralized digital currency) of the United States”, the tenant of the White House in an executive order said.

In this regard, the president stressed that these efforts should include assessments of the possible benefits and risks for consumers, investors and companies; financial stability and systemic risk; payment systems; National security; the ability to exercise human rights; financial inclusion and equity; And the actions required to launch a CBDC of the United States if it is considered that doing so is of national interest.

For the president of the United States, a digital dollar may have the potential to support efficient and low-cost transactions, particularly cross border  transfers and payments, as well as to foster greater access to the financial system, with fewer risks from those posed Digital assets administered by the private sector.

Likewise, Biden defended that a digital dollar that is interoperable with CBDC issued by other monetary authorities could provide faster and lower cross-border payments cost and potentially boost economic growth, “support US centrality within the international financial system And help protect the role of the dollar in global finances. “

K. Tovar.

Source: El Nacional

La entrada Biden analyzes the possible launch of the digital dollar apareció primero en Bitfinance.

The Central Bank of the United States considers that it is quite likely that the country will be able to launch its own cryptocurrency or CBDC between 2025 and 2030. This was reported by the representatives of the financial center Alkesh Shah and Andrew Moss, in statements recently issued to Bloomberg, who assured that CBDCs are “an inevitable evolution of current electronic currencies”, which is why it is very difficult for the United States to “refrain from launching them”.

The US Central Bank considers central bank digital currencies to be an “inevitable evolution within the state economy”. In recent years, most of the central banks of different countries have had the emergence of digital currencies as a central point of concern, although the United States Federal Reserve (FED) had remained a little outside of this process. But a “recent report from Bank of America suggests that the American powerhouse may intend to launch its new digital currency by the end of this decade.”

It places the world’s leading power quite far behind other powers that are already advancing regulatory issues on this type of asset, especially China, which plans to massively launch its digital yuan this year.

The president of the Federal Reserve, Jerome Powell, has spoken on the subject and has indicated that “they would consider the possibility of launching a digital dollar, but that they are not interested in “being the first”.

Increase of stablecoin adoption

The representatives of the Central Bank of the United States also referred to the increase in “stablecoins in terms of adoption and capitalization”, highlighting that their trend will continue for several years. Alkesh Shah and Andrew Moss agree with the president of the FED, Jerome Powell, in pointing out that stablecoins “are a type of asset that can perfectly coexist with a digital dollar” and they hope that this type of asset will grow massively for making payments.

“We expect the adoption and use of stablecoins for payments to increase significantly in the coming years as financial institutions explore digital asset trading and custody solutions and as payment companies incorporate blockchain technology into their platforms.”

M. Rodríguez

Source: crypto247.com

La entrada The United States could launch its digital currency by 2030 apareció primero en Bitfinance.

Boston Fed Senior Vice President of Secure Payments and Fintech Research, James Cunha and the Massachusetts Institute of Technology (MIT) are working to develop the digital dollar.

According to what was expressed by Cunha, it is expected that the first part of this project will be ready in the middle of the third quarter of the year, adding that the investigations carried out clearly comprise an agnostic approach, which means that it does not intend to exclude the blockchain network.

“We are trying to understand what is the set of supporting technologies for a CBDC. We are trying to build with the MIT a system that can be implemented through different mechanisms, that involves other banks or actors and that even goes directly to consumers”, as reported by the specialist.

He stressed: “What we propose is that the prototype platform that we are building can satisfy the needs of all the actors involved.”

Another of the data confirmed by the specialists is that it continues to evaluate various initiatives in the private sector, all of them linked to open source distributed ledger technology.

K.Villarroel

Source: enterate24

La entrada US works on the development of the digital dollar apareció primero en Bitfinance.

The Secretary of the Treasury of the United States, Janet Yellen, assured that the implementation of a digital dollar would be of great benefit to the economy.

In an interview for the New York Times, Yellen also assured that “the Federal Reserve” is studying the possibility of applying its use. “There is a lot to consider when it comes to consumer protection, but it is worth examining.”

On the other hand, the secretary assured that she considers bitcoin an “extremely inefficient” currency, adding the number of times this cryptocurrency has been used in illicit operations.

“It is a highly speculative asset. I am concerned about the potential losses that investors could have”, said the head of the Treasury.

After these statements, bitcoin managed to reach above $ 58,000 at that time, its highest price registered in the digital market until then.

K. Tovar

Source: El economista

La entrada Digital dollar would benefit the US economy apareció primero en Bitfinance.