The e-cash would be a digital analogue to the greenback and could preserve privacy and anonymous transactions, according to an adviser on the bill. A group of U.S. legislators says the U.S. Treasury Department may be the good government is to establish a digital dollar, not the Federal Reserve.Electronic Currency And Secure Hardware Act or ECASH Act were launched to organize the Treasury Secretary to formulate and publish an electronic version of the U.S. dollar, to conserve privacy and obscurity in transactions.
The system would be token-based and not account-based, which means if somebody losses their phone or card, they would also lose the funds. This electronic dollar would be considered lawful tender and be functionally similar to a real greenback. Rohan Grey is an assistant lecturer at Willamette University. He said that the bill is implied to build a true digital analogue to the United States dollar. He also said that they are proposing to have a profound cash-like bearer device, a token-based network that doesn’t have a consolidated ledger or distributed ledger. It uses ensured hardware software and it is issued by the Treasury.
This type of e-cash would help peer to peer transactions and the nature of its setup would support the anonymous transaction. Thus, it would vary from other recommendations for a digital dollar, which are based on stablecoins. Blockchains are formulated to track every transaction, and any transaction could be linked to the receiver and sender. Under Lynch’s proposal, users wouldn’t be accountable to any more serious know-your-customer rules than anyone trying to utilize cash. Grey said this network could assist people who are incapable to hold bank accounts because of the lowest balance prerequisites or those who don’t believe in banks because banks may charge fees or say freeze accounts.