Analysis

Mentions of a “digital dollar” in a coronavirus-related relief bill before the U.S. House of Representatives have been scrubbed.

The lawmakers first introduced the bill last week, envisioning a digital payment system organized by the Federal Reserve and its member banks to directly send these funds to U.S. residents to assist them with expenses during the COVID-19 mitigation measures, which have already resulted in massive unemployment and a potentially severe recession.

Under the latest 1,404-page draft, U.S. residents would receive $1,500 per person, though individuals with an income greater than $75,000 and couples with an income greater than $150,000 would have to repay the funds.

The section detailing the payments, which starts on page 1,090, appears to be less specific on how these payments would be sent to individuals than previous versions have been.

While the draft bill introduced by Speaker of the House Nancy Pelosi (D-Calif.) on Monday no longer includes any language around a digital dollar, a separate bill introduced by Rep. Maxine Waters (D-Calif.) titled the “Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act” still mentions the digital dollar.

The language is expected to be removed from that bill as well, according to a source familiar with the matter.

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