It seems like just yesterday we watched lawmakers push their negotiating skills into overdrive so they could hastily cobble together the bipartisan, $2.2 trillion CARES Act, which was approved in March.
That mad dash was necessary, we were told because COVID-19 was about to push the U.S. economy over a cliff. So, they reasoned, there was no time to fret over details.
Now, more than three months later, details are starting to emerge and, predictably, they aren’t good.
For instance, have you heard the one about the million-plus dead people who received
That’s not a joke. It’s a key finding in the General Accounting Office’s recently released CARES report. That’s right, even though
No one is rejoicing at this news (except maybe the relatives of the decedents, since the Treasury
However, it is conceivable some lawmakers may be feeling a small twinge of schadenfreude about now.
Why? A quick recap: Last February, as government officials hammered out the details of CARES — which turned out to be the biggest government relief package in history and included $1,200 relief checks for eligible taxpayers facing economic Armageddon — both Sen. Sherrod Brown, D-Ohio, and Rep. Maxine Waters, D-Calif., fought hard to get those relief checks paid out in digital dollars using decentralized technology.
Not only would this speed up payments, they reasoned, but it would also cost taxpayers a fraction of the cost of issuing paper checks and government debit cards. Not only that, but blockchain-based payments would be highly traceable, making confirming the receipt of the cash easy. Another plus: Digital dollars would draw millions of unbanked and underbanked Americans into the financial fold. Finally, digital payments would alleviate any concerns about mailing out germ-infested checks and cards.
All sound arguments, but, for reasons still unclear, digital dollars were never included in the final CARES bill signed into law March 27. Perhaps, because everyone was in such a rush, lawmakers reasoned there wasn’t enough time to put the needed blockchain infrastructure in place.
But, Rep. Darren Soto, D-Fla., was undeterred. Weeks after CARES was signed, he spearheaded
Similar sentiments were echoed just last week when the Senate Banking Committee conducted
Admittedly, digital dollars would not have solved all the problems called out in the GAO’s recent report. For instance, it’s unlikely they would have helped with the beleaguered $500 billion Paycheck Protection Program, which paid small-business owners to keep employees on staff. PPP has been
Similarly, digital dollars would not have curtailed egregious CARES expenditures like giving United Airlines $58 billion in relief money only to have the company turn around and
Considering these multibillion-dollar embarrassments, news that a million cadavers got cash, even $1.2 billion, seems like relatively tame.
But a blockchain-based digital dollar deserves serious consideration if only because its adoption would mark the beginning of a modern, more efficient government payment structure.
Consider an earlier
That’s at least 1.4 trillion reasons for lawmakers to start taking digital dollars seriously. Like Rep. Soto said, you’ve got to start somewhere.