Maxine Waters Criticizes Republican-Led Bill Blocking CBDC
Top Democrat Maxine Waters is not in favor of a Republican-led bill that would prevent the Federal Reserve from issuing a central bank digital currency (CBDC) to individuals. Waters, a former leader of the House Financial Services Committee, expressed disappointment that the bill lacked bipartisan support. She argued that blocking CBDC development would hinder research and prevent progress, potentially causing the dollar to lose its status as the world’s reserve currency and denying U.S. citizens faster, cheaper, and simpler payment options. Representative Tom Emmer introduced the “CBDC Anti-Surveillance State Act,” which has 50 Republican cosponsors.
Bipartisan Approach to CBDC Legislation
While some bills related to CBDCs are facing opposition, others are taking a more bipartisan approach. The Power to Mint Act, proposed by Representatives Jake Auchincloss and French Hill, would require congressional authorization before the central bank issues a CBDC. This collaborative effort aims to ensure proper oversight and accountability. It is worth noting that conservative politicians like Ron DeSantis and Vivek Ramaswamy have strongly opposed CBDCs, with DeSantis even signing a bill banning their use in Florida.
Federal Reserve’s Exploration of CBDC
The Federal Reserve has been exploring the potential issuance of a CBDC. However, an official stated that they are still far from developing it. The Fed released a report last year analyzing the advantages and disadvantages of a CBDC. According to Waters, further research is necessary to fully understand the benefits, challenges, and implications of CBDCs on the preeminence of the U.S. dollar and global finance. The Biden administration and the Federal Reserve continue their investigation into this matter.
Hot Take: Waters Criticizes Republican Bill Blocking CBDC
Maxine Waters, a prominent Democrat, has criticized a Republican-led bill that aims to block the issuance of a central bank digital currency (CBDC) by the Federal Reserve. Waters expressed disappointment with the lack of bipartisan support for the bill and argued that it would impede innovation, potentially leading to the loss of the dollar’s reserve currency status and hindering faster and more affordable payment options for U.S. citizens. While some bills related to CBDCs face opposition, others, like the Power to Mint Act, are taking a bipartisan approach by requiring congressional authorization for CBDC issuance. The Federal Reserve continues its exploration of CBDCs, recognizing the need for further research and understanding of their implications.
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