COVID: Stimulus Via Consumer-Direct Fed Digital Wallet!?
Yesterday you were an essential player in an ancient economy of access to funds, creation and servicing of debt, and processing of payments and transactions. As of this morning, you’re merely a ‘participant’ and ‘pass-through’ player in a world of a couple trillion new digital transactions and possibilities. The task of the moment and the future is now plugging in (actively), as opposed to being unplugged (passively)
That's right, the proposed stimulus bill is carrying with it the potential for deployment of funds to Americans via digital currency and wallets. If passed, it would mandate:
… all ‘member banks’ establish a ‘pass-through digital dollar wallet’ to all customers eligible for the stimulus. Member banks include those banks that are ‘members’ of the Federal Reserve and regulated by the Fed. Additionally, ‘Non-Member’ state banks - those that not members of the Federal Reserve and regulated by the FDIC - could opt-in to offer pass-through digital dollar wallets as well.
The Federal Reserve banks themselves would also make available a digital dollar wallet to any U.S. person eligible for the payments as well. Additionally, the U.S. Postal Service would aim to help unbanked individuals and/or those without proper ID to establish their identity be provided a digital dollar account, and would set up ATMs for customers to access their funds.
This means a few things:
To get your hands on these funds, your CU will need the ability to host these digital dollar wallets.
There is a huge opportunity for local FIs to enlist unbanked individuals to open wallets with your CU.
You can’t discount the role your local financial institution can play in ensuring the existing of strong, local, autonomous, and democratically directed/controlled transaction networks and economic ecosystems.
The opportunity on the horizon in the coming weeks is local FIs to acquire stimulus dollars and membership by providing a digital stimulus dollar wallet through DaLand’s Coin-2-Core Extended Ecosystem Wallet. The potential downfall for not opting in will be those digital dollars and potential membership will go directly to the Federal Reserve banks or other FIs that do opt in. Give us a shout to define your digital currency strategy and leverage this unique opportunity for the benefit of your FI and local economy.