ALBANY, N.Y.—A legislative bill has been filed in the state of New York proposing a dollar-based digital currency for its residents.
The “Inclusive Value Ledger” initiative is spearheaded by a pair of lawmakers and a Cornell professor. The goal is to develop a peer-to-peer savings and payments platform, Ledger Insights explained.
In October 2019, New York State Assemblyman Ron Kim (D), Senator Julia Salazar (D-NY) and Professor Robert Hockett unveiled the bill known as the Empire State Inclusive Value Ledger (IVL) Establishment and Administration Act.
Hockett is a Cornell law professor who also consults for the International Monetary Fund (IMF) and the Federal Reserve Bank of New York. He drafted the bill and accompanying whitepaper.
The bill proposes a public payments system, digital wallets and a smartphone app, to reduce the role of banks as middlemen and address the unbanked and underbanked as well as marginalized communities. Banks, including their ATMs, and payment firms like PayPal and Venmo would be required to interoperate with the IVL currency, Ledger Insights said.
What Plan Calls For
The whitepaper suggested the IVL system could be used for New York State residents to receive state tax credits, pensions and government benefits totaling $55 billion annually. Likewise, payments for taxes and licenses would be made using IVL into a pooled “Master Account”.
“The creation of a free public savings and payment platform that all New Yorkers can use, not only to pay for goods and services but also to transfer money directly to each other through, could fundamentally reshape New York into a fairer, healthier, wealthier, and more inclusive place for all,” stated Kim.
The IVL will leverage dollar-denominated tokens which can be used for everyday transactions such as groceries and public transport. Primarily, the platform will substitute a free system for third-party payment service providers which charge a commission, Ledger Insights said.