A new bill introduced called the ‘Automatic BOOST to Communities Act’ is sponsored by Congresswoman Rashida Tlaib (D-MI) who sits on the Financial Services Committee and Congresswoman Pramila Jayapal (D-WA), Co-Chair of the Congressional Progressive Caucus. Cong. Tlaib originally introduced a policy proposal on March 21 that drew a great deal of public attention with the idea of having the U.S. Treasury mint two $1 trillion dollar platinum coins to fund stimulus payments.
In response to the speed at which the U.S. Treasury was delivering stimulus checks for COVID-19, Representative Tlaib told me, ‘It is obvious that the Federal Government, even Members of Congress, are completely disconnected with the reality of the majority of American people. The way they approached this is not based on leading with compassion nor is it based on logic of where is the greatest need and where can we make the greatest impact. They are throwing spaghetti on the wall and hoping it sticks…We are in a global pandemic. People cannot wait two weeks or four months as the IRS says in some cases for those that need relief.’
Congresswoman Tlaib (D-MI) and Congresswoman Jayapal (D-WA), co-sponsors of the ABC Act.
‘Mint The Coin!’ was the call from Representative Tlaib at a live campaign rally for former Presidential candidate Bernie Sanders, which was a call for support of her unique fiscal policy measure that is included in the ABC Act. Tlaib’s enthusiasm for a fiscal policy idea of $2 trillion dollar platinum coins to be minted by U.S. Treasury fueled a movement that had started called #MintTheCoin.
The idea avoids increasing the U.S. national debt by directing the U.S. Treasury to use its legal authority to create money under 31 U.S.C. § 5112(k), to mint the coins. The Federal Reserve would subsequently purchase them and provide a credit of $2 trillion to the account at the U.S. Treasury, through which the national debt would not be increased regarding what we owe to U.S. creditors.
‘We are at an unprecedented time and we have the capability of minting two coins, but also going through that route without actually increasing our debt or trying to allow our grandchildren or future generations to pay for it. It is not their fault nor their responsibility, I truly believe,’ said Congresswoman Tlaib. Her economic policy advisor Chastity Murphy added that the money set aside in the U.S. Treasury would not be subject to any setoffs, meaning Treasury would not be able to use the funds for other programs and kept them exclusively for funding stimulus payments.
Mail, Telephone, And In-Person Pick-Up Before Digital Dollar Cash and Wallets
At the end of the bill, there is a ‘sense of Congress’ resolution that by 2021 the Treasury offer e-wallets in the form of digital dollar wallet accounts and the Federal Reserve make available FedAccounts in the form of digital dollar cash accounts. This concept originally appeared in a draft discussion of the CARES Act, although ultimately was eliminated from consideration in the 3rd COVID-19 stimulus bill.
Crypto & Blockchain
I write about blockchain regulation and policy.
I am a former U.S. Regulator with the FDIC, compliance examiner for the Making Home Affordable Program (HAMP) with the Treasury, and have been active in bitcoin and blockchain since 2016. I served in in the FDIC’s Capital Markets and Finance Divisions during the Global Financial Crisis of 2008-2009 working on qualitative, quantitative issues covering IndyMac Bank, Washington Mutual, Wachovia, Lehman Brothers, AIG, Citigroup, Merrill Lynch and Bank of America. I supported the FDIC’s Board at IndyMac bank with deposit run analysis, researched and explained synthetic collateralized debt obligations, credit default swaps, compiled the exposure of net notional derivatives in the financial system, and analyzed new programs by the Federal Reserve Board to stabilize the economy. I became interested in the importance of trust in the financial system and how the U.S. government manages the concept of trust. With the introduction of bitcoin and blockchain technology by a colleague in 2016, I entered into the blockchain industry, first with the Chamber of Digital Commerce as Director of Operations for Policy and then as the Policy Ambassador for ConsenSys. I am currently the founding CEO and President of a new non-profit called the Value Technology Foundation, with the purpose to conduct exclusively educational and charitable activities with regard to digital assets, blockchain, distributed ledger technologies and other relevant “value” technologies for the public welfare and economic benefits of the citizens of the United States. I hold a degree from Cornell University in Government (BA, 1997) and the Kogod School of Business (MBA, 2009).