Digital Dollar – Two versions of the law mentioned a new form of money

The concept of digital dollar has appeared in most of the headlines in the US this week. The US is working on the implementation of a package of economic incentives worth 2 trillion dollars. This money would have the role of helping to combat the effect that the COVID-19 pandemic has on the economy. Two versions of the law on incentives mentioned the digital dollar.

A project issued by the US House of Representatives introduced the concept of digital dollar, a digital currency issued by the central bank (CBDC). The Federal Reserve could send money directly into the electronic wallets of individuals.

An alternative project of the US Senate mentioned a similar concept, in more detail. Unfortunately, the mention was deleted in the final form of the proposed law.

US closer to issuing a digital dollar

Such a prominent mention of digital dollars means that the US has officially entered the CBDC innovation race. Although it is unlikely to see it implemented, the coronavirus crisis may help precipitate the adoption of new forms of money, crypto analysts believe.

Christopher Giancarlo, the former president of the CFTC, recently established the Digital Dollar Foundation to work on the design and potential legal framework of a digital dollar.

China is ready for its own CBDC

Meanwhile, the Chinese newspaper Global Times published an article on the progress of the Chinese CBDC on Tuesday.

The report, which is based on anonymous “inside sources”, says that the basic technical aspects of the project are ready. However, legal conditions should be created before the official launch, which may take some time.

The Chinese Central Bank cooperates on this project with the country’s major technology groups, namely Alibaba, Tencent and Huawei.