The US House of Representatives drafted a bill that would authorize billions of dollars in payments to vulnerable consumers, businesses, and populations during the COVID-19 emergency. Thus giving a basis for the digital dollar project, using Ethereum technology, known as eThaler.
Why a digital dollar? Why Ethereum?
As markets continue to fall, the US He hoped that the House Congress would agree to launch a stimulus package to save the economy from the ravages of the Coronavirus. The proposal of the Democrats of the Lower House includes a very new stimulus: to create a “digital dollar”.
This indicates that the US they are in establishing the infrastructure for a central bank digital currency, known as CBDC.
The bill establishes a digital dollar, defined as “a balance expressed as a dollar value, consisting of digital accounting entries that are recorded as a liability in the accounts of any Federal Reserve Bank, or an electronic value unit, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System)”
However, it can be seen that it does not mention Ethereum technology at first.
Now, all this has been generated thanks to the fact that Bitcoin is an open source virtual currency that is regulated without the need for a centralizing entity or government. For this, it relies on cryptography and the exchange of P2P files.
Now, the expected stimulus package is driving the project to issue central bank currency on Ethereum as it fixes Bitcoin’s problems.
Project called eThaler
Within hours of this bill being reported, the blockchain consortium Hyperledger announced a meeting with the project working group called eThaler.
First conceived earlier this year, eThaler gets its name from the thaler, a silver coin used throughout Europe for hundreds of years, from which the word “dollar” is derived. This one uses the Ethereum blockchain to create a digital dollar.
The token issuance system
will comply with the Token Taxonomy Framework, a collection of standards for
companies using Ethereum, developed by JPMorgan Chase, ConsenSys and
other members of the Enterprise Ethereum Alliance, in April 2019.
The group, informally called eThaler Labs, is based on Hyperledger Besu. This is an enterprise version of Ethereum submitted by ConsenSys subsidiary PegaSys to Hyperledger and approved last August.
eThaler is designed to be fungible, which means that regardless of which central bank may end up minting your coin, each token will have the same value as the underlying asset.
The Coronavirus race has put lawmakers on the ropes, forcing them to be more flexible. For now, the Senate approved a $ 2.2 trillion stimulus package, with no mention of a digital dollar, which is now awaiting a House vote.