Legislative efforts gain momentum in the US to stop the digital dollar.
A battle is brewing in Congress over the idea of a central bank digital currency
, or CBDC
, in the United States. This week, the House Financial Services Committee will take up
legislation aimed at slamming the brakes on any potential digital dollar from the Federal Reserve.
The committee plans to mark up two bills related to CBDCs when they meet on Tuesday. One is the Digital Dollar Pilot Prevention Act, or H.R. 3712, which would require the Fed to get Congressional approval before even testing out such a currency. The other seeks to prohibit Fed banks from offering products directly to individuals. It would also ban the use of digital dollars for monetary policy purposes.
Reactions to the digital dollar concept have been mixed across the political landscape. Some major presidential contenders like Robert F. Kennedy Jr. and Ron DeSantis have spoken against it
. Others have sounded alarms about privacy and the potential for government overreach.
Even so, the Federal Reserve Bank of San Francisco has been actively hiring technical experts to work on a digital currency project. This indicates continued serious interest in the idea within the Fed itself.
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