The House Financial Services Committee has passed a bill to ban the Federal Reserve from creating a central bank digital currency (CBDC). The bill, which was introduced by Republican Congressman Tom Emmer, now advances to the House of Representatives.
The bill prohibits the Fed from creating a CBDC, including any pilot programs, without prior approval from Congress. It also prohibits the Fed from introducing a retail CBDC that could be used for citizen surveillance.
Emmer spoke strongly against the creation of a CBDC, arguing that it is a threat to privacy, individual sovereignty, and free market competitiveness. He said that the bill is necessary to protect Americans from the "federal government overreach."
The bill's approval in the House is uncertain, as Democrats control the chamber. However, it is unlikely to pass the Senate, which is controlled by Democrats.
The Biden administration has been relatively divided on the idea of a CBDC. President Biden has said that he is "supportive" of the idea, but he has also expressed concerns about the potential risks, such as financial instability and money laundering.
The Federal Reserve has been conducting research on CBDCs for several years, but it has not yet made a decision about whether or not to create one. The Fed has said that it will consult with Congress and the public before making any decisions.
The passage of the bill in the House Financial Services Committee is a setback for the Federal Reserve's efforts to develop a CBDC. It is unclear what the long-term impact of the bill will be, but it is likely to delay the development of a US CBDC.
The passage of the bill in the House Financial Services Committee is a significant development in the debate over CBDCs in the United States. The bill reflects the growing concerns among some lawmakers about the potential risks of CBDCs, such as privacy concerns and the potential for government overreach.
The bill is unlikely to pass the Senate, but it could still have a significant impact on the development of a US CBDC. The bill could force the Federal Reserve to delay its plans for a CBDC, and it could also make it more difficult for the Fed to get approval from Congress to create a CBDC in the future.
The passage of the bill also underscores the deep partisan divisions over CBDCs in the United States. Democrats are generally more supportive of CBDCs than Republicans. Republicans are more concerned about the potential risks of CBDCs, such as privacy concerns and the potential for government overreach.
The debate over CBDCs is likely to continue for several years. The outcome of the debate will have significant implications for the future of the US financial system.
