Fintech’s Final Frontier: Central Banks and Disintermediation - a16z

The government should turn every social security number into a unique and secure bank account, enabling it to deposit money directly to consumers.

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Why not turn the social security number (SSN) into a bank account, placing some measure of security (password + second factor authentication) while we’re at it? With an SSN as a permanent financial account with the government, the government could deposit money directly to consumers, or allow person-to-person transfers (Fedwire being the SABRE of sending money, only accessible through banks), or pay overnight interest on deposits directly. Need to pay your taxes? Just deposit it directly to your Federal account. Waiting for a tax refund? Nothing to wait for. The same could be done with the “SSN for businesses,” called the Federal...

The government should turn every social security number into a unique and secure bank account, enabling it to deposit money directly to consumers.

——

Why not turn the social security number (SSN) into a bank account, placing some measure of security (password + second factor authentication) while we’re at it? With an SSN as a permanent financial account with the government, the government could deposit money directly to consumers, or allow person-to-person transfers (Fedwire being the SABRE of sending money, only accessible through banks), or pay overnight interest on deposits directly. Need to pay your taxes? Just deposit it directly to your Federal account. Waiting for a tax refund? Nothing to wait for. The same could be done with the “SSN for businesses,” called the Federal Employer Identification Number (FEIN). Start a business, get an instant “account” with the federal government for any transactions with the government...