Title: Shock U.S. Digital Dollar Proposals Set Bitcoin And Crypto Prices Alight
Headings: Shock U.S. Digital Dollar Proposals Set Bitcoin And Crypto Prices Alight
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May 28, 2021,02:56pm EDT
Shock U.S. Digital Dollar Proposals Set Bitcoin And Crypto Prices Alight
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The bitcoin price had already been boosted by the Fed promising an open-ended commitment to keep buying assets under its coronavirus crisis quantitative easing measures. If the U.S. were to create a digital dollar it could be seen as a tacit endorsement of bitcoin and cryptocurrencies, especially if it were to use bitcoin's underlying blockchain technology. A provision for a digital dollar was included in a draft stimulus bill put together by the U.S. Democratic Party as a means to make payments to people and businesses hit by coronavirus-induced economic turmoil. "This stops short of the party proposing to create a cryptocurrency for this purpose, and it is unclear whether it will make the final bill," said eToro market analyst Adam Vettese in a note to clients, somewhat playing down the news. MORE FOR YOU
Bitcoin Crashes Toward $30,000 As Ethereum, Binance’s BNB, Cardano, Ripple’s XRP And Dogecoin Lead Another Crypto Price Plummet
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The Democrat House Speaker Nancy Pelosi unveiled the $2.5 trillion spending bill yesterday, with the plan including measures to support homeowners and renters and $10,000 in loan forgiveness for student borrowers. MORE FROM FORBES Coronavirus COVID-19 Will Go Down In History As The Social Media And Bitcoin Pandemic By Billy Bambrough
However, there are no plans for the House to vote on the measures, which are seen as a list of Democrat demands for inclusion in the Senate bill. The proposals said the digital dollar would work as "a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal [R]eserve 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)." According to the draft bill, which runs to over 1,000 pages, the digital dollars would exist in a digital dollar wallet, defined as "a digital wallet or account, maintained by a Federal [R]eserve bank on behalf of any person, that represents holdings in an electronic device or service that is used to store digital dollars that may be tied to a digital or physical identity." Calls for the U.S. to begin development of a digital dollar have been growing louder over recent months, with Federal Reserve chairman Jerome Powell saying he's looking into the possibilities of a central bank digital currency
Powell told lawmakers in November the Fed is analyzing "the costs and benefits of pursuing such an initiative."