A proposal to give every citizen a Fed account.
Right now a bank account number identifies the correspondent bank and the account number. Purchasing something with my Fed number my vendor bank does a ledger swap with the Fed. That is a congestion problem. The old system routed across the hierarchy using shortest path.
Better to just offer Fed debit cards at your local banks, service charges courtesy of the Fed. For these accounts, money is exchanged for bank reserve balances and these are kept at the Fed by the bank or PSP. So updates back to the fed are asynchronous as needed.
But wait, current debit cards work like that, then exchange a ledger swap with their reserve balances and that eventually make s it way to the Fed sheet. what is the problem? Bank fees and ATM charges. And those ae driven by regulation and Fed fees.
Otherwise, these debit cards pay all the same fees for transactions as everyone else. We already use these for food stamps, just extend the concept.
How to extend the concept: Offer everyone a federal secure personal ID. Simply write the standard and offer a subsidy to poor people to get one. Then all citizen;'s have the same voluntary contract enforcement capability, for any and all government and commercial contracts and accunts. This is much simpler, just sit down with the NSA boneheads and give them a clue.
This approach secures a lot of stuff. From driving to data to credit to autonomous vehicles to medical to monetary. If some wants a Fed account they read he rules then click on the submit with their secure card. With secure contracts that fed account becomes tradable cash, we cna build a no double spend protocol with those accounts.
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