A new bill will begin a massive test of digital currency

2 A U.S. judge called for a greater trial of government -sponsored digital currency. The Electronic Currency and Secure Hardware (ECASH) Act, enacted by Rep. Stephen Lynch (D-MA), will direct the Secretary of the Treasury to try to make the public an “electronic version” of the U.S. currency. While the bill’s sentiment is low, it shows the government is increasingly stepping up its introduction to cryptocurrency.

The ECASH Act requires the Secretary of the Treasury to establish a program called the Electronic Currency Innovation Program (ECIP). ECIP will maintain a type of management program for what the bill calls “e-cash”: A financial system issued by the Treasury that can be used without personal inputs such as banks and credit card companies. The Treasury will begin the blockchain within 90 days after the bill is passed and transfer the e-cash to the public within four years.

Although “digital dollars” are often combined with cryptocurrency-based cryptocurrencies such as Bitcoin, the ECASH law is seen to weaken the use of that technology. E-cash is expected to have “small data transfer providers”-a high requirement for cryptocurrency systems to register transactions-and is expected to allow unauthenticated peer-to-peer transfers in of a “standard and distributed. library.” The changes do not require re -certification by a government system or payment service, although they must work with agencies such as banks. , its ease of use, and the lack of fees or labor problems – but to translate physical bills.

Lynch’s bill, co-sponsored by Jesús “Chuy” García (D-IL), Rashida Tlaib (D-MI), Ayanna Pressley (D-MA), and Alma Adams (D-NC), calls It was about three o’clock. initial diagnostic tests of the concept running within 180 days after departure. They can be led by existing universities or financial institutions, and are encouraged to experiment with different technologies. One attempt will need to access a physical card that can store money, and the other will need to access savings on a mobile phone or SIM card. Those initial trials will be followed by a public hearing and “public notice” within 48 months.

Lynch’s bill is based on the U.S.’s growing interest in the “digital dollar.” The Federal Reserve released a preliminary report on digital currency earlier this year, showing it could benefit Americans who are not served by the current banking system. More recently, Biden’s administration has introduced a central bank digital currency (CBDC) as a tool in its cryptocurrency execution order. Many governments outside of the United States are looking for digital money. Among other things, the European Commission plans to launch a “digital euro” by 2023, and China launched a “digital yuan” pilot program in January.

The bill states that e-cash is different from CBDC and does not replace a Federal Reserve scheme. Such as CoinTelegraph leaving no center or distributed ledger that keeps track of activities. This avoids anonymity, but also means that users will lose their digital money if they lose the app or credit card. It will be built on currency exchange systems such as EagleCash, a digital credit card for military members.

The goal is to “implement and succeed” in Biden’s management programs while having an easy -to -use financial system on American phones and wallets. “Money continues to be our strongest tool to promote financial inclusion while maintaining privacy and security,” said Rep. García in a word. “New digital developers need to emulate it – not change it.”

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