Congress Weighs Authorizing Fed Digital Currency
Some lawmakers are advocating for digital dollars to speed up payments to households in need of financial assistance, according to The Wall Street Journal.
The concept of digital dollars and the accounts that would store the funding are in separate House and Senate bills as lawmakers attempt to expedite the fiscal stimulus consumers desperately need. The US government lacks the logistical capability to disperse payments widely.
Certain lawmakers believe the most effective way to mitigate the economic effects of the pandemic is to disperse funds as quickly as possible. The Fed has made significant efforts to bolster the financial system but most of these moves have benefited banks and companies, not households.
However, Federal Reserve Chairman Jerome Powell stated that there are significant privacy concerns regarding a digital currency offered by the central bank and that Americans would rather have cash.
Some lawmakers are advocating for digital dollars to speed up payments to households in need of financial assistance.