US Legislators to Consider Laws Blocking CBDC
Date: 2023-09-19 Author: Dima Zakharov Categories: BUSINESS, IN WORLD
Bills on the Table
The committee's agenda includes the review and amendment of two bills:
HR 3712 - Preventing Pilot Digital Dollar Project Act:
This bill, introduced by Representative Alex Muni in May, seeks to prohibit the Federal Reserve from launching pilot testing projects of CBDC without congressional approval.
HR 5403 - Counteracting State Surveillance of CBDC Act:
Introduced on September 12th by Majority House Whip Tom Emmer, this bill aims to prevent Federal Reserve Banks from directly offering products or services related to CBDC and digital assets to individual consumers.
Controversy Surrounding CBDC
The possibility of introducing CBDC in the US has sparked heated debates among both politicians and ordinary Americans. While in theory, digital dollars could provide broader access to the financial system, practical implementation would require smartphones and banking contracts not accessible to everyone. Banks have also expressed concerns that offering consumers a secure way to hold electronic money might lead to deposit outflows.
Government's Stance
A representative from the Department of the Treasury, speaking anonymously due to a lack of authorization to publicly discuss the matter, stated that the department is closely monitoring the situation. Meanwhile, an unnamed White House official mentioned that the director of the National Economic Council, Lael Brainard, does not currently prioritize the CBDC topic and has not taken a position on the potential digital currency.
CBDC Supporters and Critics
Proponents of CBDC argue that it could make banking services cheaper, simpler, faster, and more accessible for all Americans. However, critics contend that a digital dollar could raise serious privacy concerns and grant too much power to the federal government.
Federal Reserve's Assessment
The Federal Reserve is still evaluating the potential impact of a digital dollar. Several studies, pilot tests, and experiments are currently underway to determine the technology's capabilities and limitations.
Public Consensus
As for the American public, it is unlikely that a consensus will form in favor of or against the digital dollar until they understand the structure of the US CBDC and its potential impact on the average American.
