US lawmakers have again proposed the concept of a “digital dollar” to send incentive payments to taxpayers in order to curb the economic downturn due to the coronavirus pandemic.
Congressmen Rashida Tlaib and Pramila Jayapal presented a new “Mint the coin” proposal to the Federal government.
The Automatic BOOST to Communities (ABC) bill provides for the immediate payment of $2,000 using BOOST debit cards to every U.S. citizen as assistance during the COVID-19 crisis. Next, it is proposed to pay $1,000 monthly for one year after the end of the crisis to help the country recover.
The ABC proposal will be funded by the US Treasury Department without additional debt, by issuing two batches of $1 trillion coins and, if necessary, additional coins. The ABC bill also revives the idea of a “digital dollar” introduced last month.
Under the bill, the us Congress will authorize the Federal reserve to create FedAccounts – “wallet accounts in US dollars” that would allow US residents, citizens and businesses located in the country to access financial services.
“No later than January 1, 2021, the Secretary will offer all recipients of BOOST payments the opportunity to receive money to a digital dollar wallet,” the bill says.
ABC was proposed due to ongoing problems with issuing incentive payments of $1,200 allowed under the CARES Act. The IRS sent payments to taxpayers, but the glitches prevented many people from getting their funds, or even confirming the payment status.
However, the bill introduced this week goes beyond incentive payments. The document notes that FedAccount holders must have access to a number of other services, including “debit cards, access to online accounts, automatic bill payment, mobile banking, and ATMs located at U.S. postal service offices.”
The bill was also supported by congressmen Jesus garcía, Alcee Hastings, Alexandria Ocasio-Cortez, Ilhan Omar, Ayanna Pressley, Bobby Rush, Jan Schakowsky, and Nydia velázquez.
Vanderbilt University associate Professor Morgan Ricks, who contributed to the initial proposals to issue the digital dollar, said that he and his colleagues “gave staff-level advice” to the House of representatives and the us Senate over the past few weeks.
“It is good to see legislative attention to this concept. We think this is a revolutionary idea, ” he said.
Recall that in March, members of the house of representatives of the us Congress from the Democratic party presented a bill that describes the release of the “digital dollar”. However, almost immediately, the digital dollar was excluded from the latest version of the bill aimed at stimulating the American economy against the background of the coronavirus pandemic.