An important meeting on the American digital dollar will take place on September 20th. The digital dollar is a so-called Central bank digital currency (CBDC), a type of cryptocurrency issued by a central bank.
The concept has many supporters and opponents. It will be next Wednesday House Financial Services Committee are discussing two bills to introduce the digital dollar and its possible blocking.
Two bills to block the digital dollar
The announcement by Patrick McHenry, chairman of the Financial Services Committee, attracted widespread attention. According to him, the upcoming consultation will focus on two draft laws.
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– GOP for Financial Services (@FinancialCmte) September 16, 2023
The first bill is the Digital Dollar Pilot Prevention Act (HR 3712), introduced by Representative Alex Mooney. The bill, introduced in May, aims to prohibit the Federal Reserve from launching pilot programs for CBDCs without congressional approval.
The second bill contains an adjustment of the Federal Reserve Act. As a result, Federal Reserve banks are not permitted to offer their products or services directly to individual users. In addition, the use of CBDCs for both monetary policy and other purposes will be restricted. The bill states:
“A Federal Reserve Bank may not offer a digital banking currency or a substantially similar digital asset to an individual indirectly through a financial institution or other intermediary under a different name or designation.”
Opinions on CBDCs are divided
The concept of a digital dollar has caused quite a stir in the US. Presidential candidates Robert F. Kennedy Jr. and Ron DeSantis previously expressed concerns about possible financial privacy violations. Proponents of CBDC argue that it can maintain the dollar’s global influence and encourage cryptocurrency adoption.
The upcoming meeting of the House Financial Services Committee will be crucial to the future of the digital US dollar. This comes against the backdrop of a divided political landscape and increasing discussions about the role of CBDCs in the digitalization of our economy.