Electric tokens or currency have cash-like privacy characteristics but they are neither like CBDCs nor cryptocurrencies
The legal director of a legal representative firm for software developers, Software Freedom Law Center, Mishi Choudhary supported the United States lawmakers’ efforts for developing an electronic version of native currency US dollar. According to the writer testimony for a hearing of House Financial Services Committee on digital wallet on Thursday, Choudhary said that the United States is in need of a currency or some electric token having functionalities that are equivalent to cash, offers all the benefits of currency that includes anonymity, privacy, no transaction fees, autonomy and addresses all of such flaws.
Her description suggested a token similar to the e-cash that was proposed in a March bill by Representative Stephen Lynch with many of those benefits that CBDCs or central bank digital currency or cryptocurrencies in general does without being traced. She said that the unique features of the ECASH idea is that hardware wallets have the equivalent of coins that are both created and managed by the central authority, the United States Treasury, which is the closest way for a universal access like cash.
Chaudhary said that imagine how this idea that everybody can have, store and pay using money but even without the help of traditional banking system’s involvements any way. Here’s an idea to have these electronic tokens equivalent in cash like functionality and not at all traceable.
Software law firm director added that the proposed e-cash aims to preserve privacy features and improve the financial inclusion by allowing the general public access to the software that is behind the technology to bring transparency.
Deputy director of the Law and Political Economy Project Raul Carrillo, who’s also one of the hearing witnesses said that e-cash would be used for online payments, but unlike cryptocurrencies, they could be potentially lost and missing the hardware.
The e-cash that was proposed would not be built on the blockchain or would not need the internet to operate. However the Illinois Representative Bill Foster mentioned the lack of information considering the ownership concern around illegal transactions such Know Your Customer requirements.
Choudhary hinted that the United States could be holded back due to lack of regulatory clarity from being a leader in the space of digital transactions where other jurisdictions have made attempts to figure out the issues in this digital space.
Source: https://www.thecoinrepublic.com/2022/04/29/director-of-the-software-freedom-law-centre-thinks-that-the-us-needs-electronic-token/