Two Republican lawmakers are calling for a constant ban on U.S. central bank digital currency (CBDC) to be written into the 21st Century ROAD to Housing Act, as the measure is expected to be voted on in the U.S. House of Representatives this week.
The bill was published in March by the U.S. Senate Committee on Banking, Housing and Urban Affairs mainly addresses changes to federal housing programs, but also includes a section prohibiting the Federal Reserve System or any Federal Reserve bank from issuing a CBDC or similar instrument until December 31, 2030.
The US House of Representatives created its own amended bill, which was proposed by Congressman Mike Flood he said revokes the “backdoor green light for CBDC” and aims to make the ban constant.
The revised legislation is expected to be voted on in the House this week. If it passes, the bill will return to the Senate, where it may be subject to further amendments. The bill must pass both houses before it reaches President Donald Trump’s desk for his signature.
Critics of CBDCs often cite the possibility of their misuse. Human Rights Foundation he said the benefits of CBDC include the potential to expand financial inclusion for populations with constrained access to the financial system. The disadvantages include the currency’s potential to invade privacy and open up-to-date opportunities for government corruption.
The representative says the ban must be made constant
U.S. Rep. Warren Davidson, a member of the House of Representatives, also supported a constant CBDC ban because “the 2030 sunset is a pre-launch development period.”
“The U.S. House of Representatives could have scored a unifying victory this week with bipartisan housing affordability legislation. Instead, it now plans to set a launch date for a central bank digital currency using housing as a Trojan horse,” he added.
Source: Warren Davidson
Following the American think tank The Atlantic Council lists only three countries have officially implemented CBDC: Nigeria, Jamaica and the Bahamas, while 41 others are in the pilot phase.
Alternative CBDC ban laws out of the way
Meanwhile, House Majority Whip Tom Emmer, one of the Republican Party’s top congressional leadership positions, is advocating for an anti-CBDC surveillance state bill.
Bill passed The House passed it on July 17, but has not yet received full Senate approval. It aims to block the Federal Reserve from creating or issuing CBDCs.
Source: Tom Emmer
“The Chinese Communist Party uses central bank digital currency (CBDC) to surveil and control its citizens. If the United States adopted its own CBDC, privacy and economic freedom as we know it would cease to exist,” he said.
Related: The Governor of the Bank of Korea supports CBDC, deposit tokens to the first address
“My Anti-CBDC Surveillance State Act BANS our government from ever creating this Orwellian tool. The House passed it. Now the Senate must act.”
Formerly Senator Mike Lee introduced The “No CBDC Act” as a stand-alone law prohibiting the Fed or Treasury from issuing CBDCs. However, it is stuck in Congress.
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