US Financial Services Committee Hearing Discussed the Creation of a ‘Digital Dollar’

On June 11, 2020, the United States Congress Financial Services Committee held a remote hearing about the creation of a “digital dollar.” A number of well known individuals participated including the former Chairman of the U.S. Commodity Futures Trading Commission, Christopher Giancarlo, and members from the Electronic Transactions Association.

The Covid-19 outbreak and following panic, invoked members of Congress to initiate massive stimulus for businesses and individuals. While incumbent financial institutions and large corporations got a massive share of the stimulus funds, all eligible Americans got a $1,200 check or more, depending on spouse and child dependencies. The funds were distributed after Congress and U.S. President Donald Trump approved the CARES Act.

Since then, the need for widespread economic relief continues because lots of Americans still haven’t gotten their money, and many are waiting for the inefficient postal service to deliver. A number of Americans got EID cards with the funds loaded on the card, but most people still haven’t received a stimulus check and others report that they experience extreme difficulties obtaining the funds.

The issues of delivery and contact have spurred politicians to start talking about a “digital dollar.” At 12 p.m. EDT on June 11, the United States Congress Financial Services Committee listened to testimony from a myriad of witnesses and members of the ‘Digital Dollar’ foundation.

The Digital Dollar foundation has been heralded on various occasions during the last two months from people like Christopher Giancarlo and Daniel Gorfine. The project is a partnership between Accenture (NYSE: ACN) and advisors include members like Adrienne Harris, Alan Lane, Chris Brummer, Cuy Sheffield, Don Wilson, Elizabeth Gray, Jim Harper, Jesse McWaters, and Tom Jessop. The DDF website states:

The Digital Dollar Foundation [was created] to advance the exploration of a United States Central Bank Digital Currency (CBDC). The purpose of the Project is to encourage research and public discussion on the potential advantages of a digital dollar, convene private sector thought leaders and actors, and propose possible models to support the public sector. The Project will develop a framework for potential, practical steps that can be taken to establish a dollar CBDC.

At the virtual hearing with members of the DDF, Congress, and leaders from the Electronic Transactions Association, the group listened to a number of speakers. Speaking with the financial columnist, Rachel McIntosh, Christopher Giancarlo told the publication “the purpose of the hearing,” which includes “ [discussion concerning] Inclusive Banking During a Pandemic: Using FedAccounts and Digital Tools to Improve Delivery of Stimulus Payments,’ [but it wasn’t] only to discuss the ‘digital dollar,’ but to spark a conversation around better digital solutions for financial inclusion.” Giancarlo further stated:

A tokenized CBDC is one of these solutions that we’re advocating that the Fed explore further. Shouting into the void of academic research…about how our banking system leaves out some of our most vulnerable communities.

Of course, after watching the virtual hearing and the following statements told to the press, the DDF and the creation of the digital dollar is still likely 1-2 years out. However, Giancarlo said he is excited to see the ball start rolling.

“We are thrilled that everyone, public and private, share a common desire to look more deeply into new digital solutions for faster delivery of payments,” the former CFTC Chair told McIntosh.

“The best-case scenario for us that we are heard and a series of pilot programs of a tokenized CBDC can be explored next,” Giancarlo concluded. News.Bitcoin.com readers can also watch the recorded hearing via the Youtube video below, published by the U.S. Financial Services Committee.