U.S. Congress proposes digital USD – Cardano CEO compares it to OneCoin scam

  • The United States Congress is considering launching a digital wallet system to issue digital dollars and send money directly to its citizens. 
  • The President of the Federal Reserve of the United States stated that the institution has “an infinite amount of money”.
  • Cardano’s creator, Charles Hoskinson, compared the policy of the Federal Reserve to the OneCoin scam.

A law proposed by the U.S. House of Representatives considers issuing a digital dollar. The measure is aimed at mitigating the crisis caused by the spread of the COVID-19 pandemic. This emergency has caused the traditional financial market and cryptocurrencies to register significant losses during the last month.

The world’s major central banks implemented drastic measures in an attempt to prevent total collapse. The United States Federal Reserve (FED) and the European Central Bank announced purchase programs of 700 billion dollars and 700 billion euros respectively. Thus, the financial institutions seek to mitigate the effects of the pandemic on the markets, but have taken on an unprecedented amount of public debt.

The law proposed by the House of Representatives is part of this attempt to alleviate the effects of the crisis. According to the law proposal, the U.S. government could give up to $2,000 a month to the most vulnerable citizens of that country. In order for citizens to receive the money, the law proposes creating a digital wallet system that can receive the digital dollar. The law defines the digital dollar as:

A balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal reserve bank; or an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).

On the other hand, the law defines a digital wallet as an account held by the U.S. Federal Reserve on behalf of citizens to deposit the digital dollar. In addition, the law proposes that “emergency payments” be executed by the Secretary of the Treasury through the Commissioner of the Internal Revenue Service. The emergency payments would be made until the COVID-19 emergency is lifted, as declared by the U.S. institutions. Details on the execution of this law, if approved, are still unknown.

Creator of Cardano on Fed’s “infinite money” policy

Although the implementation of the law remains unknown, its financing would be done by the Federal Reserve as part of a controversial policy. In a video that continues to shock the crypto community, the president of the Federal Reserve said the institution has “an infinite amount of money.

His statements immediately became the subject of debate in the crypto community. IOHK CEO and creator of Cardano, Charles Hoskinson, compared this policy of “infinite money” to the OneCoin scam. In November 2019, it became known that the OneCoin scam managed to steal about $4 billion from investors who supported a fake, worthless token.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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