Deputies of the US Democratic Party have proposed the creation of a "digital dollar"

Democratic members of the US House of Representatives are preparing to introducea bill that describes the release of the "digital dollar."

In the draft document on countermeasurescoronavirus pandemic, dated March 22, there is no proposal to create a cryptocurrency based on distributed ledger technology. A digital dollar refers to “a balance, expressed in dollar value, that exists as a monetary liability in the accounts of any Federal Reserve Bank; or an electronic unit of value that can be redeemed at any financial institution authorized to do so by the board of governors of the Federal Reserve System.”

The document already contains more than 1,000 pages, andthe final version is expected to be more than 1,400 pages. There is a possibility that the digital dollar provision will be removed later. According to a source familiar with the situation, it raises a number of questions, including regarding the creation of appropriate infrastructure.

Apparently, presented in the billthe ideas are based on a proposal from Michigan MP Rashida Tlaib, who previously stated the need to create a digital public currency wallets system, managed by the Treasury Department.

It is expected that electronic currency will bestored in a “digital dollar wallet,” which will represent the assets on the electronic device or service used to store digital dollars. There are also plans to create a number of intermediate wallets that can be used to access funds contributed by authorities. The wallets will be managed by the Federal Reserve Banks through separate entities. Transactions through them cannot be subject to commissions, and their functionality must be at the level of regular bank transfers.

“Member banks with consolidatedassets totaling more than $10 billion should quickly provide individuals with the ability to use intermediary digital dollar wallets using the Internet or telephone communications,” — the document says.

Operating expenses that banks will incur due towallet services will be reimbursed quarterly. If the bill is adopted with all the points described above, then banks will be required to develop the appropriate infrastructure and provide it to all participants in the system by the end of this year.

"The Federal Reserve Banks are required to createdigital dollar wallets no later than January 1, 2021. They should be available to all American citizens and lawful permanent residents, as well as entities doing business primarily in the United States,” — the document says.

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