Experts Debate U.S. Digital Dollar in Contentious Congressional Hearing
Explore the arguments presented by expert witnesses during a congressional hearing on the 'digital dollar dilemma' and the potential implications of a U.S. central bank digital currency.
Posted 10 months ago in Blockchain
A House of Representatives subcommittee held a hearing on the 'digital dollar dilemma,' inviting five expert witnesses to testify on the topic. While partisan divisions were evident, with some vehemently opposing the idea of a central bank digital currency (CBDC), the hearing explored the potential risks and benefits associated with a U.S. CBDC.
The hearing, conducted by the Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, focused on private sector alternatives to CBDCs. One of the witnesses, Digital Asset CEO Yuval Rooz, emphasized the importance of respecting privacy rights while leveraging existing technologies in the private sector.
Paige Paridon, senior vice president of the Bank Policy Institute, highlighted potential risks that could undermine the commercial banking system and restrict credit availability to the economy. Christina Parajon Skinner from the University of Pennsylvania contextualized the CBDC discussion within a historical framework, while Norbert Michel from the Cato Institute expressed skepticism about the benefits of a U.S. CBDC.
Raúl Carrillo, a lecturer at Columbia University, voiced support for digital dollar technology in general but spoke out against a CBDC due to concerns about the concentration of responsibilities in the Federal Reserve. Carrillo argued for greater discussions on Digital Dollar pilot programs and a more innovative approach to building a secure financial system for all.
The hearing also touched upon proposed bills related to CBDCs, such as H.R. 3402, which would require congressional authorization prior to the introduction of a CBDC, and H.R. 3712, which seeks to restrict CBDC research.
Overall, the hearing reflected the ongoing debate surrounding the implementation of a U.S. digital dollar, with experts presenting diverging viewpoints on its potential impact and feasibility.
Last updated 9/14/2023, 8:08:35 PM
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