American lawmakers have filed a bill that would authorize the Treasury Department to oversee the establishment of the digital dollar rather than the Federal Reserve.
- Four Democrat lawmakers introduced the Electronic Currency and Secure Hardware Act which would give the Treasury Department the responsibility for developing and issuing the planned digital dollar.
- The measure defines the digital dollar as a bearer instrument that people could hold on their phone or a card through a token-based system. This would mean that the loss of the phone or the card would lead to the loss of digital dollars.
- The bill seeks to legalize the digital dollar as tender and make it functionally identical to the US dollar. It will support peer-to-peer transactions and could be utilized for anonymous transactions.
The proposal also eases know-your-customer rules for users of the digital dollar in a bid to boost adoption among unbanked individuals.
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