Members of the US Congress are pushing bills to block the introduction of digital dollars

The U.S. House of Representatives’ Financial Services Committee is moving forward with bills aimed at preventing the central bank from issuing a dollar-based digital currency.

A step Notice From House Speaker Patrick McHenry, on September 20, the committee will introduce two bills on the possible issuance of a digital version of the dollar in the United States. On this date, sessions are held where members of Congress discuss the details of a bill. This is an important step before a bill is sent to the House.

One of the bills is the Digital Dollar Pilot Prevention Act, or HR 3712, which prohibits the Federal Reserve from launching pilot programs to test CBDCs (central bank digital currencies) without congressional approval. introduced By Rep. Alex Mooney in May.

Recently, the central bank denied any decision to issue a one-dollar CBDC, saying it would “proceed only with legislation authorizing a CBDC.” However, San Francisco’s central bank has opened vacancies for technologists specializing in the development of CBDC projects in recent months, indicating that the digital dollar is under discussion.

#New: Chairman @PatrickMcHenry Markup announces legislation to strengthen US national security and prevent central bank from issuing digital currency

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— Financial Services GOP (@FinancialCmte) September 16, 2023

#NEWS: President @PatrickMcHenry announced a session to strengthen US national security and prevent central bank digital currency from being issued in the US.

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— Financial Services GOP (@FinancialCmte)

The second bill is an amendment to the Federal Reserve Act, which prohibits state arms of the central bank from offering certain products or services directly to consumers, and prohibits the use of CBDCs for monetary policy or other purposes.

“Central Bank branches shall not issue to an individual indirectly through a financial institution or other intermediary any digital asset substantially similar to the Central Bank’s digital currencies or any other name or label” It says Legal Scheme.

The prospect of implementing a digital dollar has created controversy in the United States. Presidential candidates Robert F. Kennedy Jr. and Ron DeSantis spoke out against launching a CBDC in the country, citing concerns about the financial privacy of American citizens. Proponents of CBDCs argue that a central bank digital currency would help the US maintain the dollar’s global relevance, as well as increase the adoption of cryptocurrencies.

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