The trillion dollars promised to the Americans, who are on their knees due to Covid19 and the panic that ensued, reveal the behind the scenes of the eThaler project, a digital dollar based on the corporate version of Ethereum, Hyperledger Besu.
While the bill of the American Democrats was voted on without the specifications regarding the digital dollar, which has filled the pages of newspapers in recent days, the understanding of how this new monetary system could impact the lives of Americans is certainly being considered.
Hyperledger provides a collaborative effort in the open-source world created to advance cross-sector blockchain technologies. It is a global collaboration, hosted by the Linux Foundation, which includes ledgers in finance, banking, Internet of Things, supply chain, manufacturing and technology.
The Enterprise Ethereum Alliance has established the Token Taxonomy Framework, a standard for companies using Ethereum, which made the Hyperledger Besu project possible. A work presented by ConsenSys PegaSys and Hyperledger and approved last August. eThaler Labs would operate in this environment.
eThaler is designed to be fungible, regardless of which central bank might end up minting its own currency using technology, each token will have the same value as the underlying asset.
Like traditional fiat currencies, any initial injection of eThaler-based tokens would have to be increased through new minting by the central bank or destroyed through a burning process.
Nothing new compared to Tether, the project that led to the birth of USDT, the most widely used stablecoin in the blockchain world. The difference is that the underlying would not be in the hands of a company, as is the case with Bitfinex, but the FED.
As bitcoin or Ether, eThaler will be able to be split into decimals, a crucial component for so-called micropayments, small online transactions currently impossible with legal currencies.
Finally, and perhaps most controversially, the asset must be “suspendable” in case a bug is discovered in the software or an update is implemented.
The creation of a digital dollar and the establishment of digital wallets in dollars are phrases and words that weigh heavily when they are written on official bills, even if they are momentarily discarded. The path that has allowed these concepts to reach the House denotes work that comes from afar.
The US is serious about establishing new infrastructures for a central bank digital currency.
“The concept of the CBDC seems to have gotten an imprimatur from the house finance committee”.
This was the comment of Vipin Bharathan, Chairman of the Hyperledger working group during a meeting that seemed to be more heated than usual.
Such an important mention of digital dollars in a House draft law in connection with the Federal Reserve means that the world’s largest economy has officially entered what is an increasingly heated race between a series of advanced projects involving central banks around the world.
Bharathan, partly due to his experience as a former JP Morgan Chase developer, goes on to say:
“That’s a significant step, and I argue that such crisis situations always produce new ideas, and acceptance of new ideas, that will live on long after the coronavirus has burned through the world”.
We broke the taboo, until a few years ago it would have seemed impossible. Instead, here we are, the birth of Bitcoin and its most successful derivations such as Ethereum are producing unexpected results.