Socio-Economics History Blog

Socio-Economics History Blog

Your Next Coronavirus Stimulus May Come In Digital Dollars

by mosesman

  • Your Next Coronavirus Stimulus May Come In Digital Dollars
    by Klark Jouss, https://clickwooz.wordpress.com/
    We see plenty of reports on whether or not there will be a second stimulus package and what it might include. However, not many are talking about how you may get your next stimulus payment if it gets approved. After delivery issues with the first stimulus payment, many expect the next coronavirus stimulus check to arrive through FedAccounts and digital dollars.
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    Digital dollars: a contender to deliver next coronavirus stimulus
    The stimulus payments many people got as part of the CARES Act had several issues. These issues include late delivery, check fraud, recipients accidentally trashing their debit cards, and more.
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    Such issues have forced authorities to look for another more effective way to disburse the payments. One of the most popular suggestions that authorities are evaluating currently for future coronavirus stimulus payments is the use of digital dollars and FedAccounts.
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    Even an initial version of the CARES Act talked about the use of digital accounts. It has also been included in a few proposals for the second round, including a proposal from Maxine Waters, a Democrat from California. In fact, the term “FedAccounts” originated from Waters’ bill entitled the Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act.
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    “FedAccounts” means a digital account for every American that will be maintained by the Federal Reserve. People will be able to access funds through digital dollar wallets managed by the Fed.
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    Two more bills, the ABC (Automatic Boost to Communities) Act by Congresswomen Rashida Tlaib and Pramila Jayapal and the Banking For All Act by Sen. Sherrod Brown, have discussed the idea of FedAccounts and the use of digital dollars. However, the focus of these bills is using these concepts as a delivery mechanism rather than an effort to develop a digital currency managed by the U.S. central bank.
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    What experts say
    On Thursday, the House Financial Services Committee scheduled a hearing called Inclusive Banking During a Pandemic: Using FedAccounts and Digital Tools to Improve Delivery of Stimulus Payments. The hearing discussed ways to expand financial inclusion in the U.S.
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