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Mark Cuban wants to see US banks provide cash advances for those struggling to make ends meet whilst waiting for government checks. The US government might have pledged $1,200 to almost every US citizen, but the billionaire says three weeks is too long to wait for those most in need of the money.
Steven Mnuchin, US Treasury Secretary, says the checks could be sent out in two weeks. [The Guardian] However, the logistics of sending out checks on the scale required may mean that Americans are left longer without the money. Of course, with some form of digital currency, like , none of this would be a problem.
The coronavirus pandemic has left many out of work. Movement restrictions and forced closures of workplaces the planet over have meant heavy layoffs in most industries.
As BeInCrypto reported recently, as many as 14 million US citizens have been laid off. The numbers claiming unemployment benefits are also the highest they have ever been. For those those US citizens living paycheck to paycheck, $1,200 will provide something of relief to their worries.
The money is part of a frankly vast economic stimulus program agreed upon on Thursday. Each eligible taxpayer will receive a check up to $1,200. The size of their payment depends on their own income. Those with dependents will also receive extra.
Dallas Mavericks owner and billionaire investor Mark Cuban has called upon US banks to start providing cash advances for those that need it most. With most citizens about to receive $1,200, the risk of doing so should be minimal. He believes that the money could already be going to make an understandably trying time somewhat easier for many.
Anyone know a very agile FDIC, SBA Preferred Lender Bank that I can work with to get cash advances into people’s hands ASAP, backed by their $1200 government payment ? The 3 week wait is too long. Let’s help people now. #CoronaKarma
— Mark Cuban (@mcuban) March 26, 2020
One bank at least has publicly responded to Cuban’s call to “help people now.” Citizens Bank of Edmond, Okla., a bank that was described as the “most innovative community bank” by Independent Banker last year, asked Cuban to contact its CEO directly about the idea.
To those who already use digital currencies, for it to take two weeks or more to receive $1,200 is frankly ridiculous. However, legacy systems are hardly known for their efficiencies.
Using a strictly digital system, payments could be made much faster. It would even be possible to build a system by which all payments could go out the same day as the announcement. In a world where blockchain-based digital currencies are possible, a paper check in the post seems like a tremendous waste of resources and time.
Bitcoin, as the largest and most secure digital currency, could make an ideal candidate for such a system. There is, however, a major snag with that — there is no central bank that can suddenly create new Bitcoin.
The Federal Reserve’s current stimulus effort relies on its own ability to simply create the money out of nothing. Creating masses of paper money has not typically ended well. Let’s see how it plays out this time.
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