U.S.President Donald Trump has signed fourth stimulus bill–with more, and potentially further …[+] stimulus checks, expected to be on the way.Getty Images
Warring Democrats and Republicans have so-far failed to agree on what should be included in a follow-up to the Coronavirus Aid, Relief, and Economic Security (CARES) Act but are expected to table proposals in coming weeks.
Some have suggested the U.S.Federal Reserve create a so-called digital dollar and distribute it through FedAccounts— though such a service could take time to build .
A digital dollar, similar to digital currency projects in China and Europe , could mean paper stimulus checks that will take months to distribute by post would be sent to Americans instantly.
In the meantime, internet payments giant PayPal, through its Venmo app, along with the likes of Square’s Cash App and newer digital banks Simple and Chime, have helped Americans get their stimulus checks via direct deposit.
Chime, America’s biggest digital bank by customers, was quick to begin piloting instant stimulus check payments earlier this month.
“For the 25% of Americans outside of the financial system digital payment [systems] like PayPal provide the ability to participate in the digital economy, while also avoiding costly fees,” PayPal spokesperson Tom Hunter, told Fox Business last week.
“In the current environment, we know that fast, easy, safe and secure access to stimulus payments is of high importance to people.
By electing to receive the payment through PayPal, recipients can avoid going to a physical check-cashing location, or even missing a paper check if they are sheltering in place at a different address to their registered address.” By Billy Bambrough
Banking industry watchers expect there to be a surge in demand for digital banking services due to the coronavirus pandemic.
“Coronavirus is going to further disrupt the wider banking sector,” said Nigel Green, founder and chief executive of deVere Group.
“It will act as another catalyst for people to seek fintech alternatives to access, manage, use, save and invest their money across the world.”
With financial technology upstarts building out their user base while brick-and-mortar banks are shuttered, bigger tech companies are eyeing financial services.
The likes of Google, Facebook and Apple have all begun offering banking and payment services in recent years.
Google is reported to be building a so-called “smart” debit card .
Apple launched its own credit card last year .Facebook is moving ahead with a diminished libra cryptocurrency project .
Future stimulus checks could well reach millions of Americans via the world’s biggest technology companies—bypassing banks entirely.Follow me on Twitter .
I am a journalist with significant experience covering technology, finance, economics, and business around the world.As the founding editor of Verdict.co.uk I reported … Read More
I am a journalist with significant experience covering technology, finance, economics, and business around the world.
As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle.I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself.
I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others.Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com.Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.Read Less .
