Crypto news

US lawmakers move forward with legislation to block the CBDC digital dollar.

The United States House Financial Services Committee is taking steps to prevent the issuance of a central bank digital currency (CBDC).

Chairman Patrick McHenry announced that the committee will review two bills related to a potential digital dollar on September 20.

One of the bills, H.R. 3712 (Digital Dollar Pilot Prevention Act), introduced by Representative Alex Mooney, aims to prohibit the Federal Reserve from conducting pilot programs for CBDCs without Congress’s approval.

While the Federal Reserve stated that it has not made a decision regarding a CBDC and would require authorization from Congress, the Federal Reserve of San Francisco has been actively recruiting technical positions for a CBDC project.

This suggests that the possibility of a digital dollar is still being considered.

In addition to the Digital Dollar Pilot Prevention Act, the United States House Financial Services Committee is considering another legislation that would amend the Federal Reserve Act.

This amendment aims to restrict Federal Reserve banks from directly offering specific products or services to individuals, and it would also explicitly prohibit the use of CBDCs for monetary policy and other purposes.

The bill states :

“A Federal reserve bank shall not offer a central bank digital currency, or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or other intermediary.”

The potential introduction of a digital dollar has sparked debates and controversies in the United States.

Notable figures such as presidential candidates Robert F. Kennedy Jr. and Ron DeSantis have expressed their opposition to the establishment of a CBDC in the country, citing concerns about financial privacy.

Meanwhile, proponents of CBDCs argue that it would help maintain the global relevance of the U.S. dollar and foster wider adoption of cryptocurrencies.

It’s important to note that while discussions and proposals around a digital dollar are underway, there is no definitive timeline or decision on whether the United States will proceed with the introduction of a CBDC.

The ongoing debates reflect the landscape of digital currencies

Related Articles

Back to top button
WP Twitter Auto Publish Powered By :