The U.S. House of Representatives Financial Services Committee is advancing legislation aimed at blocking the issuance of central bank digital currencies.
according to Following Chairman Patrick McHenry’s announcement, the committee is scheduled to mark up two potential digital dollar bills on September 20th. A markup is a session in which lawmakers discuss the details of a bill. This is an important step before the bill is introduced in the House of Commons.
One of the bills is the Digital Dollar Pilot Prevention Act (HR 3712), which prohibits the Federal Reserve from launching pilot programs to test CBDCs without Congressional approval. introduced Congressman Alex Mooney announced it in May.
The Fed recently denied making any decisions on whether to issue CBDCs, insisting that it would “proceed to issue CBDCs only under authorizing law.” However, the San Francisco Federal Reserve has been seeking to fill technical positions for CBDC projects over the past few months, indicating that a digital dollar is still on the table.
#new: chairman @Patrick McHenry Announces increase in bill to strengthen US national security and prevent central bank digital currency issuance.
read more https://t.co/oy3oASJYkA
— Financial Services Republican Party (@FinancialCmte) September 16, 2023
The second law would amend the Federal Reserve Act to ban the use of CBDCs for monetary policy and other purposes, and prohibit the Fed from offering certain products and services directly to individuals.
“Federal Reserve Banks shall not offer central bank digital currencies or substantially similar digital assets under any other name or label to individuals indirectly through financial institutions or other intermediaries.” read invoice.
The prospect of a digital dollar has sparked controversy in the US. Presidential candidates Robert F. Kennedy Jr. and Ron DeSantis have opposed establishing a CBDC in the country, citing financial privacy concerns. Supporters of CBDC argue that it will help the United States maintain the dollar’s global relevance and increase the adoption of cryptocurrencies.
magazine: Should children be given the “orange pill”?Bitcoin children’s book case study
