Mr. Clayton Moore reports
NETCENTS DECLARES READINESS FOR EXPECTED US FEDERAL RESERVE "DIGITAL DOLLAR"
NetCents Technology Inc. has completed internally designated preparation for the expected U.S.-government-backed cryptocurrency, central bank digital currency (CBDC).
NetCents jumped into action as soon as it learned of the plans U.S. Congress made to legislate for this U.S. Federal Reserve digital currency as part of two different versions of the first COVID-19 Stimulus Bill. Ultimately this aspect of the legislation was not included in the final version of the first stimulus bill, but the board and advisers of NetCents have agreed that this "digital dollar" will be included in subsequent legislation.
The bill is expected to establish a digital dollar, defined as "a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve Bank or ... an electronic unit of value, redeemable by an eligible financial institution." This will create a cryptocurrency backed and guaranteed by the U.S. federal government. The bill goes on to define a digital wallet and a requirement that U.S. chartered banks offer these wallets.
The establishment of these products is intended to simplify the cost and process of distributing the millions of stimulus payments contemplated by the bill, but the effects of this move will be far reaching. While the complexity of this undertaking meant that Congress was unable to include it in the first bill -- NetCents management believes the ultimate adoption is a foregone conclusion.
Daniel Gorfine, founder of fintech advisory firm Gattaca Horizons and former chief innovation officer at Commodity Futures Trading Commission (CFTC), as well as a founding director of the Digital Dollar Project, stated to Forbes: "It is worth exploring, testing and piloting a true USD CBDC and broader digital infrastructure in order to improve our future capabilities and resiliency. While the crisis underscores the importance of upgrading our financial infrastructure, broadly implementing a CBDC will require time and thoughtful co-ordination between the government and private sector stakeholders."
NetCents has developed software to support these initiatives and stands ready to support the effort. Part of the bill requires U.S. chartered banks to offer these digital wallets to their clients -- NetCents has built this platform as part of its current white-label offering for financial institutions.
The Forbes article goes on to quote Carmelle Cadet, founder and chief executive officer of EMTECH, a modern central bank technology and services company. She has recently started a new initiative called Project New Dawn to ensure the unbanked and underbanked receive economic stimulus payments. Citing an FDIC (Federal Deposit Insurance Corp.) report in 2017 that identified 63 million unbanked and underbanked in the United States, she noted: "If checks are the form of payment, the stimulus is not going to reach many of them. That would be approximately $100-billion underutilized of stimulus for lower income householders."
"We fully support the U.S. government in its creation of the contemplated digital reserve currency. The U.S. dollar is already the reserve currency of the world -- so moving it to a digital format makes total sense. The U.S. might have 63 million unbanked, but the planet Earth has billions of unbanked -- it only makes sense that the dollar take a digital form to enable remittance and micropayments for the unbanked globally -- as well as ensure its status as the world's dominant currency. The benefits to the treasury would accrue into many billions of dollars in innumerable ways. Societal benefits would be created as well; a digital dollar would be difficult to use for crimes and funding terrorism for example. This milestone is the ultimate endorsement that cryptocurrency and blockchain are here to stay," stated Clayton Moore, chief executive officer, NetCents. "We look forward to offering our platform to U.S. banks and then to global banks so that they can meet the requirements for a digital USD wallet," he summarized.
NetCents Technologies enables transactions that are both touchless and within social distancing guidelines -- which is an added benefit in the current environment.
The NetCents suite of software enables individuals and merchants to transact using cryptocurrency both in a physical store environment as well as in an e-commerce setting -- it is deploying crypto-enabled financial products across numerous business verticals to become a complete crypto ecosystem.
NetCents Technology, the transactional hub for all cryptocurrency payments, equips forward-thinking businesses with the technology to seamlessly integrate cryptocurrency processing into their payment model without taking on the risk or volatility of the crypto market. NetCents Technology is registered as a money services business (MSB) with FINTRAC.
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