How COVID-19 Pushed the United States Senate to Consider Digital Currencies

The ongoing pandemic appears to be a gift that keeps giving to digitized industries. In fact, the cruel realities has forced the world to innovate new ways of moving on with their lives.

The United States Senate Banking Committee, in a bid to capitalize on what seems to be one of the most disruptive payment systems in recent times, held an inquiry on the digitization of money and the facilitation of payments without borders.
The United States Senate Banking Committee, in a bid to capitalize on what seems to be one of the most disruptive payment systems in recent times, held an inquiry on the digitization of money and the facilitation of payments without borders.
The other subjects that were deliberated on by the U.S. Senate Banking Committee include issues that bear on the crypto and Blockchain Technology industry.

The virtual hearing which took place on the Tuesday, 30th of June shows that the US government is a step nearer to creating its own US Digital Dollars. The hearing enjoyed the presence of Mike Crapo, Senator Sherrod Brown, Honorable J. Christopher Giancarlo, Senior Counsel, Willkie Farr & Gallagher LLP and former Chairman, U.S. Commodity Futures Trading Commission, Mr. Charles Cascarilla, Chief Executive Officer And Co-Founder, Paxos, and Professor Nakita Q. Cuttino, Visiting Assistant Professor Of Law, Duke University School of Law.

The Coronavirus has indeed opened the world up to a realm of new possibilities. Americans had to adjust with the new times or get left behind.
This was re-iterated by Mike Crapo (R-UT), Chairman of the Senate Banking Committee, who illustrated how the pandemic forced Americans to innovate new digital solutions or adopt already existing digital means of proffering solutions.

This was re-iterated by Mike Crapo (R-UT), Chairman of the Senate Banking Committee, who illustrated how the pandemic forced Americans to innovate new digital solutions or adopt already existing digital means of proffering solutions.

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Mike Crapo educated the Senate Banking Committee on novel technologies that have the capacity to eclipse the existing payment system. He made the Committee understand the new key players. He also urged the U.S. Government to venture into creating its own centralized digital currency which will be controlled by the Central Bank. Issues regarding the regulation of this new currency were expounded.

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in our last digital currency hearing, it seems to me that these and similar innovations are inevitable, beneficial, and the U.S. should lead in their development.

Crapo opened the floor by observing that cryptocurrencies have contributed to a world of seamless payment without borders. What is more, the system that backs cryptocurrencies afford the players a level of anonymity.

Although the volatility of cryptocurrencies may appear to be a downside to a number of cryptocurrencies; Crapo offered a more attractive alternative that extinguishes this disadvantage: the StableCoins. He declared that:

a new type of cryptocurrency [that] has emerged aimed at achieving these benefits while marginalizing the volatility of some of its predecessors. Stablecoins, which may be issued by a central entity, deliver price stability by having their value pegged to another asset, like commercial bank deposits or government- issued bonds.

Another prominent member of the United States Senate Banking Committee, Senator Sherrod Brown (D-OH), contributed to this discuss by taking another route.

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He just did not see how adopting Cryptocurrencies is the next step in the right direction. He was of the view that there was no way the marginalized demographic which comprises of the Black and Brown Americans were going to be included in this novel banking system. He said:

We heard all kinds of promises about how cryptocurrencies like Bitcoin or Ethereum would fundamentally change our relationship with the banking system. Workers would be able to efficiently and cheaply transfer money, make online payments, or buy groceries, all without a bank account. But thats not what happenedBitcoin is primarily used by wealthy investors.

He said further:

These companies promised their algorithms would guarantee innovative products and services to people locked out of the financial system. That’s simply not true the algorithms use biased data, and we end up with more discrimination against the very people they say their products will help.

He established the need for a more inclusive Banking System and brought banking issues affecting female and Brown and Black Americans to the fore.
He noted that this demographic makes up the vast majority of America’s essential workers and it made no sense that they are impeded from accessing seamless and less costly banking service. Moreover, those who are privileged to access it among them pay through their nose to do so.

He noted that this demographic makes up the vast majority of America’s essential workers and it made no sense that they are impeded from accessing seamless and less costly banking service. Moreover, those who are privileged to access it among them pay through their nose to do so.
He urged the US Federal Reserve to adopt his new bill, the Banking For All Act, which he believed will be of more use than the creation of new digital currencies.
He noted that this demographic makes up the vast majority of America’s essential workers and it made no sense that they are impeded from accessing seamless and less costly banking service. Moreover, those who are privileged to access it among them pay through their nose to do so.
He urged the US Federal Reserve to adopt his new bill, the Banking For All Act, which he believed will be of more use than the creation of new digital currencies.