: Bipartisan Bill Blocks Fed from Issuing CBDC, Protecting Privacy

21. May 2023 By admin Off


• 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.
• Advocates say CBDCs can provide better financial services to their citizens, while critics say a CBDC is a breach of privacy.
• 114 countries now looking into them, compared to just 35 countries in 2020, according to the Atlantic Council’s CBDC tracker.

US Lawmakers Introduce Legislation Blocking Central Bank Digital Currency

Republican Rep. French Hill of Arkansas and Democratic Rep. Jake Auchincloss of Massachusetts have introduced the Power of the Mint Act, which is designed to prevent the Federal Reserve from issuing a central bank digital currency (CBDC). The bill is the first bipartisan legislation on this issue in Congress.

Debate Around Potential Benefits and Risks

Advocates for CBDCs argue that they can provide better financial services and increase access to banking services for citizens who may not currently have them. However, critics are concerned about privacy issues as well as potential control over individuals’ finances that could arise if such currencies were implemented on a large scale.

Governor DeSantis Blocks CBDCs in Florida

Florida Governor Ron DeSantis has signed legislation banning CBDCs in his state and becoming the first governor in America to do so. He believes such currencies would “violate privacy, limit consumer choice & undermine market competitiveness”.

Lawmakers From Both Parties Take Action Against CBDCs

In addition to Gov. DeSantis’ action against CBDCs, Republican Sen Ted Cruz and Rep Tom Emmer have also proposed bills that would prevent the Federal Reserve from issuing any form of digital currency directly to individuals.

114 Countries Now Looking Into CBDCs

According to data from Atlantic Council’s CBDC tracker, 114 countries are now looking into central bank digital currencies compared with just 35 countries last year. The Council expects momentum around this issue to continue throughout 2023 with 20 more countries taking significant steps towards piloting their own versions of digital currencies next year.