TL;DR: United States Congresswoman Rashida Tlaib proposed the Automatic BOOST to Communities Act (BOOST). In response to the coronavirus economic fallout, BOOST seeks to “immediately provide a U.S. Debit Card pre-loaded with $2,000 to every person in America,” she explained. “Each card would be recharged with $1,000 monthly until one year after the end of the Coronavirus crisis,” financing the effort by minting two $1 trillion platinum coins.
Rashida Tlaib Proposes US Treasury Issue Two $1 Trillion Platinum Coins
As news moved through the cryptocurrency social media universe about Congresswoman Rashida Tlaib and her proposal to fund direct cash payments to the American public via the minting of two $1 trillion platinum coins, it became increasingly clear that in the coming days, weeks, and months similar ideas will be floated by lawmakers looking to be viewed as leaders during a historic economic downturn.
That’s important to remember as more such novel ideas get inevitable press coverage and hype. Tlaib is what’s known as a freshman House member, having barely assumed office little more than a year ago. She’s gained notoriety for her use of profanity in opposition to the Trump administration and for being part of the media sensation dubbed, The Squad (composed of herself, Alexandria Ocasio-Cortez, Ilhan Omar, and Ayanna Pressley), which can tend to overweigh her actual legislative impact and influence among colleagues.
That written, crypto enthusiasts perked up at part IV of Tlaib’s recent proposal, “Funding the Program.” BOOST “would be a money-financed fiscal program for which no additional U.S. debt would be issued,” she promised. “Instead, the program would be funded directly from the Treasury, using its legal authority to create money via coin seigniorage.”
Treasury-Administered Digital Public Currency Wallet System
BOOST orders the US Mint “issue two $1 trillion platinum coins,” directing “the Federal Reserve to purchase the newly issued coins at full face value.” The Fed would then credit the Mint’s “account at the Fed with $2 trillion in reserves,” retaining permanent ownership “to ensure its own balance sheet remains fully capitalized by the Treasury.” Newly created reserve funds would be swept “into the regular Treasury General Account,” which would then be made available to the public through debit cards.
Tlaib’s plan would make BOOST “a permanent, Treasury-administered digital public currency wallet system, to serve as a privacy-respecting ‘eCash’ complement to universal Fed Accounts and/or Postal Bank Accounts for All.”
It’s, again, perhaps more of a way for Tlaib to raise her profile during the coronavirus economic downturn than a proposal taken seriously by her colleagues. BOOST is likely to be more of a simple pdf document passed around by crypto news outlets.
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