Summary:
- US lawmakers from both sides of the aisle introduced a bill this week to block the Federal Reserve from issuing a central bank digital currency.
- Criticisms have been raised about CBDCs, with advocates claiming they provide better financial services and critics arguing that it is a breach of privacy.
- About 114 countries are now looking into CBDCs, with over 20 countries taking significant steps towards piloting them in 2023.
Bipartisan Bill To Block CBDC
US lawmakers from both sides of the aisle introduced a bill this week to block the Federal Reserve from issuing a central bank digital currency. Republican Rep. French Hill of Arkansas and Democratic Rep. Jake Auchincloss of Massachusetts introduced the bill this week, dubbed the Power of the Mint Act. Hill said it was the first bipartisan bill in Congress to block the central bank from issuing a CBDC, on the House floor this week.
Controversy Over CBDCs
Advocates say CBDCs can provide better financial services to their citizens, while critics say a CBDC is a breach of privacy. Florida Governor Ron DeSantis signed a bill last week banning CBDCs, and said Florida was the first state to do so. Republicans Sen. Ted Cruz and Rep. Tom Emmer have also introduced bills to block the Federal Reserve from issuing a CBDC directly to individuals.
Global Momentum for CBDCs
More and more countries are exploring a CBDC, with 114 countries now looking into them, compared to just 35 countries in 2020, according tothe Atlantic Council’s CBDC tracker. The Atlantic Council said it expects the momentumto continue this year—with over 20 countries taking significant steps towards pilotingaCBDCin2023.
Implications For Americans
Americans have arighttofinancialprivacy which is why lawmakers are introducing bills like this one; toprotect civil liberties and prevent asurveillance stateover everyday Americans usingCB DCs..< h2 >Next Steps Legislatures aroundthe world will continue exploring their respective approaches for launchingaCB DCinthecoming years . Thisbill isjust one exampleof howlawmakersare beginningto respondtothe increasingmomentumaroundCB DCsin different regions .