Bill Overview
Title: ECASH Act
Description: This bill requires the Department of the Treasury to support the development of an electronic dollar. The electronic dollar must be payable to the bearer; considered legal tender; an obligation of the United States; placed into circulation by Treasury; able to be directly used by the public; and capable of instantaneous, offline transactions using hardware devices not involving a third-party intermediary. The bill also provides for privacy requirements applicable to any hardware device used for electronic dollar transactions. Merchants who accept physical currency and the federal government must accept electronic dollars as a form of payment. The bill also establishes the Electronic Currency Innovation Program to direct the development and implementation of electronic currency, the Digital Dollar Council to coordinate Treasury's activities with other government entities, and the Monetary Privacy Board to review and evaluate the electronic dollar program. Finally, the bill provides for the establishment of a Treasury Electronic Currency Innovation Fund Account to carry out related programs.
Sponsors: Rep. Lynch, Stephen F. [D-MA-8]
Target Audience
Population: People participating in global financial transactions
Estimated Size: 330000000
- The introduction of an electronic dollar will impact all individuals who conduct transactions currently using physical cash, as this will provide an additional medium of exchange.
- Merchants accepting physical currency must also accept electronic dollars, so all merchants will be affected as they will need to adopt the necessary technology.
- Individuals who do not currently use digital payment methods may be more affected as they will have a new alternative to learn and potentially adopt.
- The privacy of financial transactions may be affected, as new privacy rules will govern these electronic transactions.
- The electronic dollar can make financial transactions accessible for individuals without traditional banking services by providing an alternative digital payment method.
Reasoning
- The policy will impact a wide range of individuals across various demographics, primarily those involved in cash transactions. Those without access to traditional banking services will gain a new financial tool, hence the direct impact on their wellbeing.
- The introduction of electronic dollars necessitates the adoption of new technologies by merchants, impacting their business operations and ultimately their customer base.
- Privacy concerns will emerge as electronic transactions inherently involve data handling and storage.
- The budget allows for substantial technological infrastructure over time, making the adoption reasonably accessible to both individuals and merchants.
- Considering different demographics, including technological proficiency and access to devices, is critical to understanding the varied impact.
Simulated Interviews
Small Business Owner (Chicago, IL)
Age: 43 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I'm apprehensive about the costs associated with adopting new technology for electronic transactions.
- This could potentially broaden my customer base by appealing to tech-savvy individuals.
- I'm concerned about transaction privacy and data security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
College Student (Denver, CO)
Age: 25 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- This seems like a natural progression towards more efficient and modern transactions.
- I'm excited about the potential privacy protections outlined.
- As a digital native, this transition will be seamless for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired (Tampa, FL)
Age: 67 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 11/20
Statement of Opinion:
- I'm worried about how easily I can understand and use this new technology.
- Having a physical back-up like a device is reassuring, as I'm not confident in digital-only solutions.
- The proposal to ensure privacy is important to me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Freelance Artist (Austin, TX)
Age: 34 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I hope this will make it easier for me to receive payments digitally without high fees.
- I'm interested in the privacy aspects, especially being able to transact offline.
- Accessibility for freelance workers like me is crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 10 | 6 |
Bank Teller (New York, NY)
Age: 54 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- This policy may change the dynamics of my job significantly as traditional banks may need to adapt.
- It could lead to more efficient ways for customers to transact.
- Concerns about job security with advancements in digital currency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Single Mother (Detroit, MI)
Age: 30 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- I think this will help people like me who can't always access traditional banks.
- Having a secure and private way to receive and manage money digitally sounds promising.
- I'm worried about how to get and use the necessary devices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Software Developer (Seattle, WA)
Age: 29 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- This will be an important system upgrade for digital transactions in the country.
- I'm enthusiastic about the technology solutions that will emerge due to this.
- As a coder, this creates exciting job opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Public School Teacher (Raleigh, NC)
Age: 48 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- I'm interested in how this policy will be incorporated into our economic curriculum.
- It is important for students to understand new digital economic practices.
- The implications for how families manage budgets and transactions could be significant.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Farmer (Rural Iowa)
Age: 58 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- Ensuring offline transactions is vital in areas with poor connectivity.
- I worry about the costs associated with upgrading payment methods.
- Hoping this policy might protect small businesses like mine from risky credit sales.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
N/A - Retired (Phoenix, AZ)
Age: 72 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- I'm cautious about technology changes at my age but interested in the privacy this promises.
- As long as electronic currency use is optional and offline efficient, I am supportive.
- I hope it considers older people in its implementation to ensure they aren't excluded.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $750000000 (Low: $500000000, High: $1000000000)
Year 2: $500000000 (Low: $300000000, High: $700000000)
Year 3: $400000000 (Low: $200000000, High: $600000000)
Year 5: $300000000 (Low: $150000000, High: $450000000)
Year 10: $100000000 (Low: $50000000, High: $200000000)
Year 100: $10000000 (Low: $5000000, High: $20000000)
Key Considerations
- Ensuring the privacy and security of electronic transactions will be critical to public acceptance and use.
- The adoption rate by merchants and consumers will largely determine the success of the electronic dollar.
- Potential resistance from stakeholders benefiting from the current financial system may slow implementation.
- Coordination among various governmental and private sector entities will be crucial for the program’s success.