Chairman Patrick McHenry has announced that on September 20, the U.S. House Financial Services Committee is set to endorse two pivotal bills with the potential to shape the future of digital currency in America. These legislative proposals are stirring up debate, eliciting strong opinions both in the halls of Congress and among the American populace.”
Two New Bills to Be Presented
The first bill aims to prohibit the Federal Reserve from conducting CBDC (Central Bank Digital Currency) tests and pilot programs without Congressional approval. Known as the Digital Dollar Pilot Prevention Act, or H.R. 3712, this legislation was proposed by Representative Alex Mooney in May. It could limit the Federal Reserve’s independence and slow down the adoption of a CBDC.
The second bill has a broader scope and proposes to prohibit Federal Reserve banks from offering specific products or services to individuals. This would also forbid the use of CBDCs for monetary policy and other purposes.
“A Federal Reserve Bank shall not offer a central bank digital currency or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or another intermediary,” the bill stated.
How the Public and Politicians See Digital Currency?
The possibility of a digital dollar has sparked various discussions in the United States. Presidential candidates Robert F. Kennedy Jr. and Ron DeSantis oppose the creation of a CBDC due to financial privacy concerns; However, supporters of CBDC argue that it will preserve the global effectiveness of the dollar and enable greater adoption of cryptocurrencies.
The decision of the House Financial Services Committee on these bills will significantly affect the future of the United States regarding digital currency.