The COVID-19 pandemic has undoubtedly accelerated the digitization of the global economy, opening discussions about the future of digital financial services and whether the economy should encourage the inclusion of Bitcoin (BTC), the Digital Dollar, and other digital assets in finances.
Although major industries continue to suffer, the digital payments industry continues to thrive.
When the Senate’s Banking, Housing, and Urban Affairs Committee held a virtual meeting last month entitled “The Digitization of Money and Payments,” the conversation focused on stable coins and whether the economy is ready to go digital with the use of the US central bank digital currency.
The conference introduced digital currency and the demand for the Central Bank Digital Currency (CBDC). Under the Act called the “Banking for All Act”, the Senate discussed digital dollars and their approval through digital dollar wallets.
The opening speech of the June hearing began with Senator Crapo, inviting witnesses to discuss why CBDC is needed now more than ever. The focus of the discussion is on the efforts of various groups to develop digital currency and payments. In addition, the Senate also discussed specific issues that the CBDC should resolve that have not yet been resolved, or a number of payment innovations that have been completed or are in progress cannot be resolved.
Senator Brown extolled his proposed National Banking Act as a partial alternative. This move enables all Americans to open free bank accounts at the US Post Office, bank, or online and join the Federal Reserve system directly.
About the Digital Dollar
The term “digital dollar” refers to a dollar balance that contains digital ledger entries that are recorded as a liability in a Federal Reserve Bank account. A “digital dollar wallet” refers to a digital wallet or account maintained by the Federal Reserve Bank on behalf of an individual who holds a digital currency.