Washington, D.C., September 18, 2023 – The U.S. House Financial Services Committee has scheduled a crucial discussion for September 20 regarding a proposed bill aimed at preventing the issuance of a central bank digital currency (CBDC). This development comes as CBDCs have emerged as a topic of intense scrutiny and debate on Capitol Hill.
Chairman of the Committee, Patrick McHenry, confirmed the markup session for the “Digital Dollar Pilot Prevention Act.” During this session, committee members will closely examine the proposed bill, consider potential amendments, and assess its implications.
The bill, if enacted, would impose restrictions on the Federal Reserve, preventing it from pursuing or endorsing any programs aimed at testing the feasibility of launching a CBDC. In his statement, Chairman McHenry emphasized the major concerns surrounding CBDCs, particularly in the realms of privacy and government surveillance.
Moreover, McHenry asserted that China’s ongoing CBDC pilot program serves as an example of how such digital currencies can be used for monitoring citizens and restricting banking access for individuals critical of the government.
In July, the Federal Reserve issued a statement clarifying its stance on CBDCs. The Fed stated that it had not reached a decision regarding the issuance of a CBDC and underscored that any such initiative would require legal authorization.
It’s worth noting that the Fed unveiled “FedNow,” a real-time interbank payment settlement service for both individuals and businesses, on July 20. The central bank has explicitly stated that FedNow is a distinct initiative unrelated to digital currencies.
As the discussion on CBDCs unfolds within the U.S. government, the upcoming markup session on the “Digital Dollar Pilot Prevention Act” signifies an important milestone in the ongoing debate surrounding the future of digital currencies and their potential impact on privacy and financial systems.
