Discover more from Vault
Hyperlink—ECASH Bill, Bitcoin Extends Rise
March 30th, 2022
U.S. Lawmakers Introduce ‘ECASH’ Bill
What’s happening: A group of U.S. lawmakers have introduced a bill to create a digital cash equivalent through the U.S. Treasury Department, as opposed to the Federal Reserve, which has been the focus of CBDC (Central Bank Digital Currency) talk up to this point.
“Reps. Stephen Lynch (D-Mass.), Jesús Chuy Garcia (D-Ill.), Ayanna Pressley (D-Mass.) and Rashida Tlaib (D-Mich.) introduced the "Electronic Currency And Secure Hardware Act" (ECASH Act) to direct the Treasury Secretary to develop and issue an electronic version of the U.S. dollar, with an eye to preserving privacy and anonymity in transactions.” [CoinDesk]
Why it matters: The key to to any new government-controlled digital currency is that it maintains the same anonymity and bearer-instrument aspects as existing cryptocurrencies. The fear is that a Fed-controlled CBDC would enable a mass-surveillance regime, giving the government massive power to economically sanction individuals, monitor spending patterns, and regulate down to the individual purchase or transaction.
Unlike a CBDC, the ECASH bill (as proposed) would act as a close equivalent to digital cash which is managed via a person’s phone or card. With ECASH, the bearer aspects of cash remain: Transactions are peer-to-peer, there is no intermediary to any transactions, but that also means there is no way to retrieve lost or stolen funds.
The keys to the entire debate are moderating governmental control and preserving privacy protections. As long as ECASH respects both, an ECASH system could work well in the U.S.
Bitcoin Extends Rise Past $48K
What’s happening: Bitcoin has extended its week-long price increase. BTC reached a low of $41,877.51 earlier this week, before climbing to $48,086.84, its highest price this year.
What caused the price increase?: Earlier this week, the Luna Foundation Guard (LFG) purchased more than 27,000 BTC, for more than $1.3B. The purchase adds increased stability to Luna’s UST stablecoin.
Why it matters: It’s been a choppy start to the year in all markets, but especially in the crypto markets, which have traded sideways in a broad range between $35,000 and $45,000. This sharp move above $45K is looked at by some as a leading indicator of a larger move to the upside. From here, $50,000 is the next level to watch.