How stimulus funds could come quicker with new payment system

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One of the biggest issues that the stimulus checks have presented is getting the funds in the pockets of Americans in a timely fashion. 

And now that we are talking about potential repeat payments, the need to get the funds over to Americans in an efficient manner is even more important.

There is one proposed act that would change up the process drastically and it involves trillion dollar platinum coins, pre-loaded debit cards, and a new digital cash system. 

The Automatic BOOST to Communities Act would immediately provide a U.S. Debit Card pre-loaded with $2,000 to every person in America.

Each card would be recharged with $1,000 monthly until one year after the end of the Coronavirus crisis.

These pre-paid digital cash cards could be used to withdraw physical currency at regular ATMs or FDIC-insured banks or credit unions or used to pay for goods just like a credit card.

The way that the funding would work is pretty interesting, and I’d be lying to you if I said I completely understand the process.

Basically the US Treasury Secretary would direct the U.S. Mint to issue two $1 trillion platinum coins, under the legal authority provided by 31 U.S.C. § 5112(k).

The rest of the process would work based on the following:

  • The Federal Reserve would credit the U.S. Mint’s account at the Fed with $2 trillion in reserves.
  • The Fed would retain ownership over the two $1 trillion coins permanently in order to ensure its own balance sheet remains fully capitalized by the Treasury.
  • The Treasury Secretary would “sweep” the newly created reserve funds from the Mint’s account into the regular Treasury General Account.
  • The Treasury would make the funds available to the Bureau of the Fiscal Service to disperse to every person in America in the form of pre-paid U.S. Debit Cards.

The drafters would like this card infrastructure to be converted into a permanent digital public currency wallet system. It would serve as an “eCash” complement to universal Fed Accounts and/or Postal Bank Accounts for All.

It would be very nice to see the country move in a direction like this where a proper infrastructure is in place to streamline delivery of funds in times of emergency/disaster.

This type of system could be used to offer refunds after hurricanes and other types of events involving catastrophic damage and huge losses where people need funds from loans and grants in order to stay alive and healthy or rebuild.

But the bill as drafted presents a lot of problems.

There are provisions related to citizenship status qualifications and progressive tax reform that will be highly contested among other things so I’m not sure how optimistic I am about this particular bill but it is interesting nonetheless.

I do think that when it comes to distributing funds, our current system is obviously obsolete and that as we go into the future things will need to be reconfigured and restructured in a way that is more with the times (think crypto). It sounds like having these debit cards/Fedaccounts could be a smart way to go about it if executed properly.  

17 comments

  1. Hey this is robin smith and i was just wondering if i was going to get a stimulus check still. My address is 209 west main street lot #4 davis city iowa 50065. And i was wondering when i would get mine.

    1. I aint got shit .now they talking about 2nd stimulus would come on a form of tax relief. We wont ever get shit .plus 1200 aint shit .now days money dont go nowhere. Look up 2nd stimulus. And complain

  4. They didn’t give out 1,200 $ and now they say they are going too give out $2,000 unreal the Rich get there $$ the retireesgot too Wait

  6. So many others have received their checks but no words about mine. I have a child who id’s autistic and am ready to be evicted let alone food on the tables. Someone please help. I live in port orange Florida

  7. I have even got on the IRS website put my social security number in and it’s not even recognized I have been at my same job for 21 years?

  8. I Think it’s a dam sham the US Treasury an the IRS is still allowing people on disability to wait an wonder if they will even recive a stimulus payment
    From Deborah West

    1. I aint got shit .now they talking about 2nd stimulus would come on a form of tax relief. We wont ever get shit .plus 1200 aint shit .now days money dont go nowhere. Look up 2nd stimulus. And complain

  9. Mo Social Security and I haven’t received nothing and I’m also a veteran when do we get paid scared of him

  11. I filed my 2019 taxes Jan 23,2020 and now today is April 23,2020 and I haven’t yet seen a change on the website it keeps on stating that I’m entering the wrong information and I know most definitely I am not they more so worried on get out stimulus checks to people why not take care of the 2019 taxes first people haven’t even seen any of that $ yet and now the government discussion about a second wave of stimulus money and it’s not fair to us hard working tax payers that got down and dirty for 12months in 2019.

  12. I put in my information an i haven’t received anything yet when i check the irs website all it says is it can’t give me any information

  13. I haven’t even got the first check. They screwed up. Their is no telling when it will get here. We haven’t seen the worst of this yet. When they release all the stuff like can’t b evicted and the others . U going to see people lose a lot. They will expect their money now and people won’t have it.

  14. Mississippi…why others nearby got their $1200, not me and part time job close no update to me after cut hours and cut hours,
    losses a month. Retired educator alone homeowner such over 62, or some close relatives dealing with stress of being able to buy supplies. Gave deposit info 2018 and info but no deposit, site say eligible and info gross not match IRS info over and over ! Not accept 2019 return now, stress stress and emotional distress of it all. Need rush paper check or go 2017 bank info or educators use direct deposit too ! Get the money to ALL n unemployment on job too ! Not post email to public

  15. I aint got shit .now they talking about 2nd stimulus would come on a form of tax relief. We wont ever get shit .plus 1200 aint shit .now days money dont go nowhere. Look up 2nd stimulus. And complain

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