RE: Do Digital Dollars Give the State Too Much Control Over Money?
Max Raskin, adjunct professor of law at New York University believes so. A little light reading for your Sunday evening
Digital Dollars Give the State Too Much Control Over Money
“A bipartisan group of U.S. congressmen wrote Treasury Secretary Steven Mnuchin last week, urging him to consider the use of blockchain technology in administering the federal government’s coronavirus response.
This comes just a month after Democrats in the House and Senate proposed bills that would allow individuals to hold checking accounts directly with Federal Reserve banks. Such accounts have been referred to as “digital dollars,” and such plans aim to both stimulate the economy with direct cash injections and bank the unbanked.
Although this may seem like a sleek new idea riding the crest of enthusiasm over blockchains, digital currency and financial inclusion, a similar proposal, dubbed the “Chicago Plan,” was considered by President Franklin Roosevelt during the Great Depression of the 1930s and ultimately rejected.
Then, like now, the plan is not without benefits. But then, like now, it should be rejected because it would be one of the biggest power grabs in American history, politicizing our system of finance irrevocably.”