US Lawmaker’s Bill Against Federal Reserve Issuing CBDC Gets Green Light
The push for a digital version of the US dollar met resistance recently as a pivotal bill advanced one step closer to a final decision. The House Financial Services Committee greenlit a proposal aimed at halting the Federal Reserve’s potential venture into launching a US central bank digital currency (CBDC).
The Digital Dollar Dilemma
The man behind this bill, Congressman Tom Emmer, passionately argues that the creation of a CBDC could undermine the values of privacy, personal freedom, and market competition that the US holds dear.
Unlike popular decentralized digital currencies such as Bitcoin that operate beyond government oversight, CBDCs are essentially “programmable money,” giving governments potential power to track and even dictate the financial behaviors of its citizens.
According to Emmer, the essence of a CBDC could threaten the very fabric of American freedoms. The urgency and excitement shown by the current Biden Administration toward CBDCs only reinforce Emmer’s concerns.
He notes that having such digital currencies in the government’s hands might turn them into tools that infringe on the American way of life, much like how China uses its own digital currency in a manner resembling a social credit system.
Broad Support, But Uncertain Future
While countries globally are racing to embrace CBDCs, the US remains torn. There are concerns about it falling behind in this digital currency race. This bill might restrain the US from making crucial advancements, potentially risking the dollar’s dominant position in the world’s economy and limiting advances in payment methods for Americans as the world progresses toward a digital utopia.
Regardless, the US CBDC isn’t without its supporters. With 60 Congress members, including notable names like French Hill, Warren Davidson, and Byron Donalds rallying behind it, its significance is evident.
Bottomline is while the bill has cleared the House Financial Services Committee, its journey is far from over. We can’t say for sure it will gain traction in the Senate, particularly given the Democratic majority which could be hesitant to back a Republican-led initiative.