The future of Digital Cash on the Blockchain is not over

This means that while there are many options for making online payments, there is no real digital money available. This is not just a theoretical difference. Paper money has been declining over the years, the situation has improved during times of illness, as more and more businesses have decided to stop accepting paper money. This is a problem, there are more and more people who are called uninsured – people who can’t get a bank account and therefore can’t get into non -financial forms.

Governments around the world, concerned by the rise of cryptocurrencies that have personally issued cryptocurrencies, are looking for so -called Central Bank Digital currencies, or CBDCs. Consider a government version of PayPal or Venmo. This can solve the unresolved problem by making an investment option for the underprivileged, but it will not replace the money. The economy is moving towards digital commerce, where the future of our choice will be only in payment systems, banking, crypto, or CBDC which is the future of every market. money when monitored by the government or private companies.

The ECASH Act, introduced by Ambassador Stephen Lynch, a Massachusetts Democrat and head of the House TaskForce on Financial Technology, seeks to prevent that effect. (He stands for the Electronic Currency and Secure Hardware Act – an impeccable legislative acronym.) The bill, which Gray discussed, would direct the U.S. Treasury Department to lead a regulatory program for a control of currencies. digital to work like money.

“If we have a public choice for funding, we have to include everything,” said Raúl Carrillo, a researcher at Yale Law School, as Gray discussed the law. “The great thing about it is being able to go outside.”

What does that mean? The Treasury will issue digital money, just as it has issued paper money since 1860. To function as money, money cannot survive on recessed books or on a board. shared blockchain reference. In other words, the rest has to be taken care of technically. It may look like a stand -alone device, or a built -in hardware on your smartphone, such as a SIM card – which means it’s a chip that’s physically separated from the rest of the device, so it’s not reliable. . in the safety of the entire operating system.

This idea has been around for a while. In the 1990s, companies such as Mondex developed secured credit cards that could support external payments. However, the governments did not take the idea of ​​investing, and those companies were bought off by the credit card industry. (As WIRED’s Steven Levy wrote, in 1994, “When I called a spokesman for the Federal Reserve to ask about electronic money, he laughed at me.

Today, technology is much simpler, and its applications are known. Last week, I spoke with Razvan Dragomirescu, chief technology officer of WhisperCash. On Zoom, she showed me the products of her industry. Some are like a credit card that has a fingerprint key and a Kindle -style electronic display. Payments can be sent between cards using Bluetooth or by entering the recipient’s ID number and amount. In the latter case, the process generates a 10-digit cryptographic hash that identifies the pages to the market and size. To receive it, the recipient must enter that code on their own credit card. WhisperCash’s other big product, a fixed bundle based on a SIM card, is turning the phone – which is also a “feature phone,” the standard around the growing world – into a wallet. for digital money.

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