(FinancialHealth.net) – COVID-19 is hurting US workers as businesses are shutting down and closing early. Lawmakers on both sides of the aisle are proposing bills to help deliver emergency aid to the American people, but the clock is ticking. Financial Services Committee Chairwoman, Representative Maxine Waters (D-CA), has introduced radical new legislation that has some people shocked.
The chairwoman’s proposal — the Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act (H.R. 6321) — creates a “digital dollar” and “digital dollar wallet.” According to Forbes, this would make digital money available in virtual bank accounts for people in need. Users would access the money through eligible financial institutions.
Chairwoman Waters’ bill would require banks that belong to the Federal Reserve to create a “pass-through digital dollar wallet” for their customers receiving stimulus money. Other banks could opt-in as well.
The legislation would enable the US Postal Service (USPS) to help people without IDs or bank accounts prove their identity. Waters hopes the bill will allow the stimulus money to reach more people. Based on a 2017 Federal Deposit Insurance Corporation (FDIC), about 6.5% of US households don’t have bank accounts.
With a USPS ID system in place, Americans without bank accounts would still have access to the stimulus money. EMTECH Founder and CEO, Carmelle Cadet, thinks it’s a great way to get the much-needed cash to millions of people.
In the midst of the chaos, I’m choosing to be optimistic and focused on looking for solutions. @EMTECH_SERVICES is kicking off an initiative to ensure the #unbanked get #stimulus #ubi #pmts join us! https://t.co/ZYOoyBqdu6 #CBDC4INCLUSION @AndrewYang @RepMaxineWaters @AOC
— Carmelle Cadet (@CarmelleCadet) March 23, 2020
Forbes reports Daniel Gorfine, founding director of the Digital Dollar Project, thinks it’s “worth exploring” to improve the country’s “future capabilities.” He warns that implementing digital infrastructure will take time, and lawmakers need to make sure it doesn’t hold up critical aid.
Digital currency is definitely an option for the country to look into. However, it’s important to remember people need money immediately. If this is going to take a long time, it might be worth holding off and seeking faster options until the country is back on track and people aren’t suffering.
~Here’s to Your Financial Health!
Copyright 2020, FinancialHealth.net