The spread of the Corona virus has made many governments allocate preventive programs and measures to prevent more infections, in addition to limiting the effects of the virus.

Recently, some members of the US Congress drafted a stimulus bill recommending the creation of a digital dollar as part of broader stimulus plans to combat the Corona virus.

as done suggestion Create grants for this digital dollar directed to workers and families under the Protection and Financial Assistance Program for U.S. Consumers and Vulnerable Populations.

Suggested grants:

The proposed grants are intended to send incentive payments to eligible individuals affected by the coronavirus shutdown.

Read:Coinbase denies that its executives were involved in the massive sale of their stock holdings

The grants are monthly payments of $1,000 for minors and $2,000 for adults.

This will be determined based on national unemployment rates and per capita income.

If a digital dollar is introduced, it will be distributed through the traditional banking system.

The US Postal Service will allow “unbanked” users who do not have IDs eligible to receive digital dollars to distribute grants to them through specialized ATMs at post offices.

Technical details:

The proposed digital dollar will not be represented on a blockchain or a decentralized distributed ledger.

This means that it will not be a cryptocurrency like Bitcoin.

However, it can be considered close to that, as balances are represented in a digital ledger, but they are operated by banks.

This will be the first example of a digital currency for a central bank in the United States.

The value of the payments is represented in two ways:

Either as a dollar balance made up of the Federal Reserve ledger entries, or as an electronic unit of value that financial institutions can redeem.

In the Federal Reserve, defined member banks will need to create a pass-through wallet that allows recipients to access a proportional share of the pooled reserve balance.

Read:Tether launches its own stablecoin USDT on the NEAR protocol

Non-member wallets can also subscribe to the pass-through wallet system.

Ongoing recovery efforts:

This is one of the many ongoing attempts to stimulate the US economy in the wake of the coronavirus outbreak.

In addition to the stimulus package introduced by Congress, the Federal Reserve announced that it will continue quantitative easing, and that it will start buying government debt and corporate bonds.

Alongside these efforts, digital currency can be an important factor in alleviating the suffering of individuals.

Read also:

Binance founder: “Corona” is innocent of the bitcoin price drop

Bitcoin is still resilient to the Corona virus… and financial markets are suffering