Digital Dollar-USDT May Help the Poor

Digital Dollar-USDT May Help the Poor

Digital dollar promoters in the U.S. they point to the many potential benefits of such money, saying that it will lead to greater financial inclusion, allow for more efficient distribution of government benefits and provide a faster & cheaper way to send crypto money overseas.

But the issue of a digital dollar is yet to be resolved, although it may have gained momentum earlier this month when President Joe Biden issued a major order asking government agencies to study the issue.

One example of how the digital dollar could help happen was when the US government issued renewal checks as a way to help COVID-19. Crypto lovers say that instead of issuing checks, the easiest and fastest way to send money to people would be to simply withdraw digital dollars.

Public Benefits

The digital dollar could bring public benefits from government more effectively than the current system, according to Briana Marbury, executive director of the nonprofit organization The Interledger Foundation.

With COVID assistance payments, the government was trying to get the checks distributed, and in some cases, it did not even have the appropriate addresses for the people who had moved. In some cases, people were not enrolled with the Internal Revenue Service because their income was less than the amount required to pay taxes.

"They had just fought and couldn't figure out how to do these checks to people quickly and efficiently and it was very much needed at the time," Marbury said.

Similar difficulties arise with the $ 2.2 trillion CARES Act for small to medium and medium enterprises and farmers.

With the CBDC, everyone would have been given a wallet that would allow them to have direct access to their funds, avoiding those barriers, say some crypto enthusiasts. In fact, lawmakers had proposed that the Federal Reserve issue a digital dollar in March 2020, but eventually decided to deposit the money directly in the bank.

Investment

Jim Cunha, a senior official at Boston's Federal Reserve Bank, says digital money can be part of the solution to a larger problem than simply distributing public funds. That problem involves many people in the financial system.

In the U.S., about 35% of low-income people open bank accounts just to get government funds. That number includes only those who are eligible to open a bank account, not individuals who want to, but who do not have the ability, to do so.

About 7.1 million people, or 5.4% of the U.S. population, do not have banks, and if they do not have money to count those who do not have access to common financial services such as credit and loan cards, the figure rises to 14 million.

Many of them are immigrants who send money overseas, which is often an expensive service.

If the Federal Reserve were to issue digital currency for the central bank (CBDC), it would likely charge significantly lower rates on remittances than private companies, he added.

Senni Sherrod Brown (D-Ohio), chairman of the Senate Banking, Housing and Urban Affairs Committee, made the same point.

"Americans should not have to pay exorbitant prices just to use the money they have earned ... the central bank digital currency can work with these free accounts to ensure that working families have access to our payment system and full participation. economy, ”Brown said at a committee meeting last September.