US Lawmakers to Review Bill on Preventing Creation of CBDC This Week
US lawmakers are currently examining a bill that would prohibit the Federal Reserve from conducting experiments related to the development of a central bank digital currency (CBDC). The proposed legislation, known as the “Digital Dollar Pilot Prevention Act” (H.R. 3712), was introduced by Congressman Alex X. Mooney in May. The aim of the bill is to close a loophole that would allow the Federal Reserve to run a pilot program testing the feasibility of issuing a CBDC.
Pushing Back Against CBDCs
Representative Patrick McHenry, Chairman of the House Financial Services Committee, recently announced a markup on H.R. 3712 and several other bills. Congressman Mooney expressed his concerns about CBDCs, stating that they pose a threat to the freedoms of law-abiding citizens and are currently being used by authoritarian countries to suppress dissent. He emphasized the importance of closing the pilot program loophole to prevent the Federal Reserve from bypassing congressional authority.
A Focus on Innovation
In addition, House Majority Whip Tom Emmer is reintroducing the “CBDC Anti-Surveillance State Act.” This new bill aims to prohibit the Federal Reserve from issuing a retail CBDC while still allowing for innovation and future development of genuine digital cash.
Hot Take: US Lawmakers Taking Action Against CBDCs
The US Congress is taking steps to prevent the creation of a central bank digital currency (CBDC) through proposed legislation. With concerns about potential threats to individual freedoms and government overreach, lawmakers are keen to close any loopholes that would allow the Federal Reserve to experiment with CBDCs without congressional approval. By introducing bills such as the “Digital Dollar Pilot Prevention Act” and the “CBDC Anti-Surveillance State Act,” representatives are aiming to protect citizens’ liberties while still promoting innovation in the digital cash sector. As discussions continue, it remains to be seen how the US government will navigate the future of CBDCs.
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