US legislators sets Sept. 20 to discuss on CBDC prevention
The US House of Representatives Financial Services Committee announced last Friday that it would discuss a new bill that would prevent the issuance of a central bank digital currency (CBDC).
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Brief information
- Committee Chairman Patrick McHenry announced that the Digital Dollar Pilot Prevention Act markup session, a session in which committee members will review the proposal in detail and possibly suggest changes, will be held on September 20.
- The bill was first introduced on May 26 by Alex Mooney, a representative of the Republican Party.
- “This bill would prohibit the Federal Reserve from establishing, operating, or authorizing a program designed to test the practicality of issuing a CBDC,” Mooney’s announcement said. “CBDCs raise major privacy and government surveillance concerns.”
- He also claimed that China is using its CBDC pilot program to monitor citizens and restrict banking access for dissidents in the government.
- In July, the Federal Reserve said It had not decided to issue a CBDC, adding that legal approval remained a prerequisite for such developments.
- The Fed’s statement came as it launched FedNow, a real-time interbank payment processing service for individuals and businesses, on July 20. According to the US Federal Reserve, FedNow has nothing to do with digital currencies.
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