In a significant development, the House Financial Services Committee has approved a bill to prevent the Federal Reserve from unilaterally creating a US Central Bank Digital Currency (CBDC).
The Restriction Rationale
Notably, this move has stirred debates and raised various concerns regarding the future of digital currencies in the United States. However, it is important to note that the newly proposed bill also includes a provision that mandates any advancements made towards a government-backed digital token to be authorized by Congress.
Meanwhile, the committee’s decision reflects growing concerns among lawmakers about the potential risks and consequences associated with the introduction of a digital currency controlled solely by the central bank. While recognizing the importance of digital currencies and their potential benefits, the bill seeks to establish a clear framework for their development. This notably features the involvement of the legislative branch in such a critical monetary policy decision.
This move ensures that Congress retains its rightful oversight and participation in the decision-making process surrounding the potential launch of a US CBDC. Importantly, the bill does not entirely dismiss the possibility of a CBDC. Instead, it seeks to ensure that any progress made in this area is subject to careful consideration and approval by Congress.
Moving forward, the bill will pave the way for further discussions and deliberations, enabling lawmakers to shape the future of digital currencies in a manner that safeguards the interests of the American people while promoting financial stability and economic progress.
US Lawmakers Protest Against CBDC
Recall that a few days ago, US Congressman Tom Emmer along with 49 original co-sponsors reintroduced a CBDC Bill dubbed “CBDC Anti-Surveillance State Act”, labeling it a surveillance tool that would undermine the American way of life. As per the reports, the CBDC Bill would specifically prohibit the Fed from issuing a CBDC to individuals which Emmer claimed would help the US government to collect personal financial data.
Likewise, another US Congressman Warren Davidson has also taken a firm stance against CBDCs. Warren is advocating not only for the complete ban of CBDC but also for the criminalization of any effort to design, test, develop, or establish a Digital Dollar.
Warren’s concerns were made in response to a job advert posted by the Federal Reserve Bank seeking a crypto architect to work on a CBDC project. He argues that the FED is designing a financial equivalent of a death star with its interest in CBDCs.
The Federal Reserve is building the financial equivalent of the Death Star.
Central Bank Digital Currency (CBDC) corrupts money into a tool for coercion & control.
Congress must swiftly ban then criminalize any effort to design, build, develop, test or establish a #CBDC. pic.twitter.com/9JWiyj5H2f
— Warren Davidson 🇺🇸 (@WarrenDavidson) July 23, 2023
