Why Congress considered a digital dollar in its coronavirus response

The coronavirus stimulus package has resurrected calls for the U.S. government to offer a central bank digital currency, public mobile wallets and postal banking—controversial ideas that are hard to pull off, but exist outside the U.S. and could dent interchange fees and private stablecoin projects like Facebook’s Libra. The $2.5 billion House coronavirus package proposal from Democrats initially included a “digital dollar” to distribute the government payments designed to support small businesses and their workers.  Rep. Maxine Waters, D-Calif., proposed legislation that would use the U.S. Postal Service to help…

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