The United States House Financial Services Committee is working on legislation to prevent the issuance of a digital currency by a central banking institution. Patrick McHenry, the new chairman, announced that two bills will be marked up on September 20th – the Digital Dollar Pilot Prevention Act (H.R. 3712) and a modification to the Federal Reserve Act. The former prohibits the Federal Reserve from conducting pilot tests on CBDCs before obtaining approval from Congress, and the latter states that a Federal Reserve bank cannot offer a central bank digital currency, or any digital asset that is substantially similar, indirectly to an individual through a financial institution or other intermediary.
The idea of a digital dollar is controversial. Presidential candidates Robert F. Kennedy Jr. and Ron DeSanTis have spoken out against its creation, citing concerns about financial privacy. Supporters of CBDCs claim they would help the United States keep the dollar relevant globally, and boost cryptocurrency adoption.
To find out more, visit the Financial Services Committee website.
