Under the dangerous wall, the digital dollar "accelerates"
Not long ago, after the collapse of the cryptocurrency market, the frequency of mainstream coins on Twitter was greatly reduced. According to data from Bitinfocharts, the mention rate of mainstream coins like ETH, LTC and XRP on Twitter is close to the lowest point in two or even three years.
Democrats in the U.S. House of Representatives want to implement a digital dollar plan to simplify how aid to U.S. citizens is delivered outside the traditional financial system, amid the controversy surrounding a massive stimulus package in response to the coronavirus.
So recently, the frequency of Bitcoin's Twitter appearance has doubled in the first three months of 2020, but its tweeting volume is still far below the all-time high in 2017.
Bitcoin’s tweet volume, which was just 12,000 during January, has more than doubled since then.
If one were to explore the reasons for this, one might think that it was due to the relatively small decline in the value of Bitcoin relative to most altcoins. After all, social media engagement about cryptocurrencies tends to move with price.
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Pandemic accelerates rollout of 'digital dollar'
The spread of the epidemic has also stimulated the launch of the "digital dollar", which is also the recognition of Bitcoin and the recognition of the encrypted world.
The "digital dollar" is a tokenized legal tender issued by the Federal Reserve System. It’s a new digital form of the U.S. dollar, and along with traditional fiat currency, banknotes, and reserves, the digital dollar enjoys the full faith and credibility of the U.S. government like central bank money.
With the outbreak of the epidemic in the United States, it is an indisputable fact that the U.S. economy will continue to decline. The U.S. is looking to Congress to agree on a massive stimulus package to keep the economy safe from the fallout from the coronavirus. The latest proposal from House Democrats includes a very forward-looking stimulus: the creation of a "digital dollar" and the establishment of a "digital dollar wallet," which would send shockwaves through the cryptocurrency and blockchain industries, especially those that follow around the world. To those who believe in central bank digital currencies, this shows that the United States is serious about building the infrastructure for central bank digital currencies.
The plan proposes paying $2,000 a month to adults earning less than $75,000 a year, with the payments tapering down and expected to last until the economy fully recovers.
A digital dollar will help future-proof the dollar and allow individuals and global businesses to pay in dollars regardless of time and space. The digital dollar initiative currently underway will catalyze a digital, tokenized U.S. currency that will co-exist with other Federal Reserve debt and become a cheaper, faster, more inclusive settlement for the digital world and the global financial system medium.
In fact, the digital dollar has roughly a design framework, and will eventually find a clear central bank digital currency solution, which can not only enhance the effectiveness of monetary policy and financial stability, but also can be used in retail, wholesale and international payments. Provides the required scalability, security and privacy in , and supports integration with existing financial infrastructure.
If the U.S. were to create a digital dollar, it could be seen as an acquiescence to bitcoin and cryptocurrencies, especially if it were to use bitcoin's underlying blockchain technology. We will wait and see whether it is really a boost to the digital currency industry if it comes out as we wish.
