The transition to digitization of the US Treasury payment system will begin soon, after President Donald Trump signed the executive order for this process.

Digitization is a fundamental factor in increasing the efficiency and transparency of payments. Aware of this, Trump signed the executive order that seeks to “centralize and digitize the government’s financial operations, a step that seeks not only to improve efficiency but also to adapt to global trends toward financial digitization.”

Faster and more secure payments

Soon, Treasury payment processes will be “faster, more secure, and more transparent for all parties involved.” The decision may also have positive effects on “the way financial institutions interact with cryptocurrencies and other blockchain innovations.”

In this context, where adaptability to current developments and needs is crucial, Trump signed two executive actions last Tuesday, March 25, ordering the U.S. Treasury to “use electronic payments whenever possible, instead of paper checks. He also asked the U.S. government to centralize payment processing within the Treasury Department as an additional measure to reduce fraud and waste,” according to Bloomberg.

The Treasury will suspend the paper check mission

It was announced that the federal government will stop issuing paper checks for intragovernmental payments, benefits, vendor payments, and tax refunds, following the White House authorization. Instead, executive departments and agencies will make direct deposits, debit and credit card payments, payments through digital wallets, real-time transfers, and other electronic funds transfer (EFT) methods.

The president is confident that through effective digitization, better control and oversight of transactions will soon be realized.

M.Pino

Source: diariobitcoin

(Main reference image source: Tabrez Syed on Unsplash)

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