Digital Greenbacks: A Sequenced 'TreasuryDirect' and 'FedWallet' Plan for the Democratic Digital Dollar

39 Pages Posted: 13 May 2020 Last revised: 18 May 2020

Date Written: May 12, 2020

Abstract

I propose means of immediately converting the Department of Treasury's existing 'TreasuryDirect' system of freely available transaction accounts into a publicly administered digital savings and payments platform. A platform of this type is an essential public utility in any commercial society such as our own. It is additionally growth-promoting inasmuch as growth-tracking GDP is a measure of transaction volume, while transaction volume is a function of more efficient and inclusive transacting. As Congress seeks means of streamlining the payments infrastructure in a time of pandemic-induced crisis, the Treasury route recommends itself as the fastest way to digitize payments for 95% of our citizens and business enterprises. I also map means of migrating the Treasury architecture to the Fed over time once the crisis is past – as the ‘Greenback’ paper dollar itself did in the late 19th and early 20th centuries – and include my draft Treasury Dollar Act as an Appendix.

Keywords: Bitcoin, Central Banking, Coronavirus, COVID-19, Cryptocurrency, Currency, Digital Currency, Digital Dollar, Dollar, Fed, Federal Reserve, FedNow, Fintech, Fiscal Policy, Inclusive Value Ledger, IVL, Money, Monetary Policy, Treasury, TreasuryDirect

Suggested Citation

Hockett, Robert C., Digital Greenbacks: A Sequenced 'TreasuryDirect' and 'FedWallet' Plan for the Democratic Digital Dollar (May 12, 2020). Available at SSRN: https://ssrn.com/abstract=3599419 or http://dx.doi.org/10.2139/ssrn.3599419

Robert C. Hockett (Contact Author)

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

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