The pandemic of COVID-19 hastened the advancement of digital services in economies all over the world. It also opened new discussions about where global financial services will go in the digital realm. Finally, it created an opportunity to discuss if the worldwide economy should advocate for including Bitcoin and other digital assets.
A lot of people think the digital payment industry will grow. The Consumer Confidence Index reports a growth from 859 in May to 98.1 in June. In July, the Senate Committee of the United States on Banking, Housing, and Urban Affairs had an online meeting about digitizing money and payments. Most of the talks were around stable coins and whether or not the economy is ready for a central bank digital currency.
There were two main points. Senator Mike Crapo, the committee chairman, said that the finance sector needs solid rules. He is a Republican from Idaho. Ohio's Senator Sherrod Brown asked why Americans should trust big tech with a national banking system. What it will come down to is whether or not the USA wants or needs a digital dollar.
A digital dollar is an electronic credit that exists on computing systems only. Even so, consumers and companies could use it for payments. Crapo's take is that the USA needs it now. He did have a list of questions he wanted answered. Senator Brown was skeptical about trusting big tech with managing the American financial system, even if it is in a digital world. He emphasized that consumer protection and equal access are needed.
Senator Brown offered an alternative arrangement. Americans could open zero-fee bank accounts through the USPS, a bank or online and connect it to the Federal Reserve. There would be no check-cashing fees and no fees to use the money they earned. People wouldn't have to wait until Wednesday to use the money they got paid on Friday.
Investors and people who are interested in the expanded use of blockchain and digital dollars should watch this closely. A new administration could have a lot to say about whether or not ideas will move forward.