Bitcoin Will "Moon" If The U.S. Creates A New Digital Dollar
Helena Šagud
Bitcoin
4 years ago
1 QCP
Bitcoin has been searching for direction this week—struggling to climb along with traditional markets after the historic coronavirus-induced crash earlier this month.
The bitcoin price, down around 25% over the last 30-day period, had recorded its best start to a new year since 2013 until the coronavirus crisis sparked global market turmoil.
However, with the long-rumored digital dollar appearing to take shape this week, bitcoin, as well as other digital assets, could be about to take a step toward mainstream adoption—and potentially see the kind of interest that pushed the bitcoin price to last year's highs.
Plans for a new digital dollar were included in a draft stimulus bill put together by the U.S. Democratic Party as a means to make payments to people and businesses hit by coronavirus-induced economic turmoil.
According to the plans, the U.S. Federal Reserve would offer bank accounts to all Americans, branded FedAccounts.
The FedAccounts would allow the government to bypass commercial banks and turn retail banking into a public service—everyone would have a FedAccount just as they have a social security number that they could use to send and receive dollars.
It's unclear whether a new digital dollar would use bitcoin's blockchain technology or a traditional, centralized database.
Though the new digital dollar plans were ultimately cut from the bill before it was put to the the House vote, its brief inclusion rekindled a conversation about mainstream digital currency that was started by social media giant Facebook last year when it began work on its libra cryptocurrency project—something that caused the bitcoin price to more than double in under six months.
Last year, the bitcoin price was pulled out of a deep bear market by rumours some of the world's biggest technology companies, from iPhone-maker Apple to social media giant Facebook, were poised to jump into the cryptocurrency game.
https://bit.ly/2wPTlmz
The bitcoin price, down around 25% over the last 30-day period, had recorded its best start to a new year since 2013 until the coronavirus crisis sparked global market turmoil.
However, with the long-rumored digital dollar appearing to take shape this week, bitcoin, as well as other digital assets, could be about to take a step toward mainstream adoption—and potentially see the kind of interest that pushed the bitcoin price to last year's highs.
Plans for a new digital dollar were included in a draft stimulus bill put together by the U.S. Democratic Party as a means to make payments to people and businesses hit by coronavirus-induced economic turmoil.
According to the plans, the U.S. Federal Reserve would offer bank accounts to all Americans, branded FedAccounts.
The FedAccounts would allow the government to bypass commercial banks and turn retail banking into a public service—everyone would have a FedAccount just as they have a social security number that they could use to send and receive dollars.
It's unclear whether a new digital dollar would use bitcoin's blockchain technology or a traditional, centralized database.
Though the new digital dollar plans were ultimately cut from the bill before it was put to the the House vote, its brief inclusion rekindled a conversation about mainstream digital currency that was started by social media giant Facebook last year when it began work on its libra cryptocurrency project—something that caused the bitcoin price to more than double in under six months.
Last year, the bitcoin price was pulled out of a deep bear market by rumours some of the world's biggest technology companies, from iPhone-maker Apple to social media giant Facebook, were poised to jump into the cryptocurrency game.
https://bit.ly/2wPTlmz
- Bitcoin boom
- Federal Reserve
- Bull market
- Bitcoin Adoption
- Crypto boom
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