US lawmakers introduce a Bill to Curb Digital Dollar Testing Due to Threat to American Liberties. This bill would likely entangle the US Federal Reserve from increasing its engagement in CBDC development or trials.
Highlights
- The US Government officials are working to make some rules to oversee the Web3 sector
- Yet the country does not have any CBDC
- Other countries like India and China are working to build CBDC aggressively
Countries around the world including the US are conducting research and enhancing their progress around the development of their respective central bank digital currency (CBDC). Some lawmakers are asking questions on the development of a CBDC in the country ahead of plans to launch a pilot of the Digital Dollar in the US. A bill has been proposed by US Congressman Alex Mooney which can be read as Digital Dollar Pilot Prevention Act (H.R. 3712). Other side legislation urges the Federal Reserve to stop immediately the research and development related to the introduction of the CBDC or digital dollar.
During the introduction or proposal of the bill, the US congressman stated that CBDC could be a threat to “law-abiding Americans.” He further added that these centralized currencies are “being used by authoritarian countries right now to crack down on dissent.”
“This bill would prohibit the Federal Reserve from establishing carrying out, or approving a program intended to test the practicability of issuing a CBDC,” said the US congressman during the proposal.
The currency is basically the digital currency and a virtual representation of a fiat currency that works on the blockchain network. These currencies are more similar to the functionality of cryptocurrencies but rather than a private organization they are being controlled by the central banks
“The Federal Reserve cough attention late last year for its CBDC pilot projects, even contracting with the private sector to build potential CBDCs for the United States which went beyond traditional research,” said the US congressman.
