Digital Wallets & Crypto Dollar Proposed By House Democrats, Big News for Bitcoin?

Crypto Dollar, Digital Wallets Proposed By House Democrats

Crypto Dollar or USDT? Democrats; currently with a majority in the House of Representatives yesterday proposed a digital currency and wallets for the United States, reported Bloomberg. This is stunning news for Bitcoin and cryptocurrency.

Until now, the U.S. government has refrained from taking a direct stance on blockchain technology, bitcoin and digital currencies. But, a move into the space could provide a much needed and very welcome dose of legitimacy for cryptocurrencies; particularly BTC.

U.S government-issue digital or crypto dollar?

The proposed legislation, if passes, would issue a mandate for the Federal Reserve to create a crypto dollar with in-house digital wallets system where the treasury-backed digital currency can be stored.

Also read: China’s State Backed Digital Currency Is Confirmed, Should the United States Worry?

Maxine Waters, the chairwoman of House Financial Services Committee introduced the on Monday.

The document content, tweeted by Bitcoin advocacy CoinCenter director, Peter Van Valkenburgh characterizes “digital dollar” as the following:

1. “A balance expressed as a dollar value consisting of digital ledger entries.”
2. “An electronic unit of value, redeemable by an eligible financial institution.”

Related: The Virtual Currency Tax Fairness Act of 2020, What You Need to Know About VCTFA

Moreover, House members thinks that a U.S sponsored “crypto dollar” or “digital currency” would make it easier for the government to distribute emergency money to Americans over a physical method, like issuing checks.

“Large Federal Reserve banks and other financial institutions [will need] to provide digital wallets to individuals and joint tax filers eligible for direct governmental emergency payments currently under negotiation in the historic economic relief package.”

Besides, there is little to no details on how a massive system as such would actually work. Although the crypto community already named it “central bank digital currency,” govt officials have yet associate the term ““cryptocurrency” with the proposed digital currency.

How would a U.S. government-backed digital currency benefits Bitcoin?

Crypto analyst, Nathaniel Whittemore twitted that an official entrance into the space will definitely benefits Bitcoin. He outlined a four-step positive scenario should the proposal materialized.

It’s unlikely the “crypto dollar” would developed and released on time for the stimulus distribution. However, the crypto community would definitely be thrilled if it becomes reality, no matter when.

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