[vc_row][vc_column][vc_paragraph text=”In an effort to revive economy in condition of crisis the US politics consider proposals that can put an end to banking activities as we know it. “][/vc_column][/vc_row][vc_row][vc_column][vc_heading title=”Honey is sweet but the bee stings” size=”medium”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Democratic bill about reaction to coronavirus originally included a law that would take into account the economic consequences of COVID-19 spreading through creation of personal digital dollar wallets for the Americans getting funds directly from Federal Reserve. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”According to the words of its supporters, this mechanism will make payments easier for 7% of non-banking sector and for 19% of under-funded.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”In this case the American Financial system will become a nationalized structure, such as roads and public libraries. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Processing fees will be theoretically reduced and transactions will be produced with the immediate repayment. More importantly, the FED will have a clearer picture about wallets and possibility of an easier transferring of interest rates’ changes directly to the society. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”On the world stage digital dollar can help the US dollar to remain a dominant world currency in addressing the threat of digital Chinese yuan that will be produced faster, as some people say, in the light of COVID-19. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”It’s not a new idea to restrict private banks through a digital dollar. It was presented in a 2018 proposal “Central bank for everyone” made by professor of law Harvard Morgan Rix. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”But it took the pandemic to understand the necessity of such mechanism. In the House of Representatives Democrats offered digital dollar in their bill in response to coronavirus since the 22nd of March. Then all the references about digital dollar were deleted in the next counterproposal, but some politics are still deeply committed to the idea.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Congressman Maxin Waters, who previously leaded efforts for freezing Facebook, offered to provide all the assistance to the citizens through the “digital dollar wallet” supported by the Bank of Federal Reserve System. It will actually expand privilege to have an account in the Central Bank (usually restricted by the commercial banks) for all citizens giving everybody “FedAccount”.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”In Senate the idea was taken up by Ohio Sherrod Brown, who said that the bill will allow every American to open a bank account for free, so they won’t have to rely upon expensive services for access to their earnings. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”But nobody knows how exactly the digital dollar wallet will look like, and the decentralized general ledger is not mentioned in proposals. “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Meanwhile the chief executive of Twitter and Square Jack Dorsey expressed his disappointment about slowness of payments to those who need it most of all. He wrote on Twitter: “People are in need of immediate assistance. The technology that would allow to distribute money for most people is already available today (even for those who don’t have bank accounts).” “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Nothing indicates that Dorsey’s offers will be accepted, but nevertheless the offers provide a clear picture about the direction of financial system and many analysts suppose that the subsequent negative interest rates and currency depreciation will create an ideal macroeconomic environment for prosperity of cryptocurrency. “][/vc_column][/vc_row]
