US House Financial Services Committee Moves to Block Digital Dollar

The US House Financial Services Committee is pushing for legislation to block the implementation of a central bank digital currency (CBDC) in the country.

Posted 7 months ago in Bitcoin

An image depicting the US House Financial Services Committee discussing the potential digital dollar legislation.

The United States House Financial Services Committee is taking action to prevent the issuance of a central bank digital currency (CBDC). Chairman Patrick McHenry announced that the Committee will mark up two bills regarding the potential digital dollar on Sep. 20.

One of the bills, H.R. 3712, known as the Digital Dollar Pilot Prevention Act, prohibits the Federal Reserve from conducting pilot programs for CBDCs without approval from Congress. The legislation aims to ensure that any decision regarding CBDC issuance is authorized by law.

Despite the Fed's recent denial of any decision, the Federal Reserve of San Francisco has been actively seeking technical personnel for a CBDC project, indicating the digital dollar is still being considered.

The second legislation proposes amendments to the Federal Reserve Act, prohibiting Fed banks from offering certain products or services directly to individuals and from using CBDCs for monetary policy purposes.

The possibility of a digital dollar has sparked controversy in the US, with presidential candidates Robert F. Kennedy Jr. and Ron DeSantis expressing concerns about financial privacy. Proponents argue that a CBDC would strengthen the global relevance of the US dollar and increase adoption of cryptocurrencies.

Last updated 9/17/2023, 11:36:20 AM


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