US Congress to consider a bill to transfer authority to the Treasury to issue a digital dollar

A bill has been submitted to the US Congress that, if passed, would transfer control over the issuance and circulation of the digital dollar to the Treasury, as the Fed cannot manage regular accounts.

The Federal Reserve System (Fed) in the United States is legally unable to manage «retail» accounts. In the traditional financial structure, it is assigned the role of the center of the US financial system. However, this position simultaneously imposes significant restrictions on the Fed — it has only a certain number of «master accounts» for large financial operators. The Fed includes 12 federal reserve banks located in major cities. All other organizations — whether individuals, corporations, or smaller financial players — get access to the Fed’s books through financial intermediaries.

That’s why Congressman Stephen Lynch introduced the Electronic Currency and Secure Hardware (ECASH) bill, which directs the U.S. Treasury to test software, hardware, and networking technologies to launch the digital dollar.

The bill’s co-author, Associate Professor of Law Rohan Gray, said: «The Fed is probably right when they say they don’t have the competence to provide retail services. And if they don’t provide retail banking services, they can’t provide retail CBDCs and they can’t issue them. But they are wrong to say that the government does not have such capabilities, because the Treasury provides these services all the time.»

Well, perhaps in a decade, children won’t know about the «bad guys at the Fed» anymore. They will be replaced by no less evil guys from the Treasury. And we are following the developments.