{"id":159745,"date":"2023-09-21T03:36:31","date_gmt":"2023-09-20T22:06:31","guid":{"rendered":"https:\/\/dripp.zone\/news\/house-committee-approves-bill-to-restrict-feds-cbdc-plans-crypto-news\/"},"modified":"2023-09-21T03:36:33","modified_gmt":"2023-09-20T22:06:33","slug":"house-committee-approves-bill-to-restrict-feds-cbdc-plans-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/house-committee-approves-bill-to-restrict-feds-cbdc-plans-crypto-news\/","title":{"rendered":"House Committee Approves Bill to Restrict FED’s CBDC Plans – Crypto News"},"content":{"rendered":"

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The House Financial Services Committee has <\/span>greenlit a bill <\/span><\/a>to halt any advances toward creating a U.S. Central Bank Digital Currency (CBDC). The controversial move ignited debates on Capitol Hill, particularly over concerns about stifling innovation and U.S. competitiveness in the global financial landscape.<\/span><\/p>\n

Hitting the Brakes on CBDC<\/h2>\n

Headed by Rep. Patrick McHenry (R-N.C.), the committee pushed the bill to ensure that Congress explicitly approves any CBDC development. Moreover, the legislation seeks to protect citizen privacy by <\/span>outlawing<\/span><\/a> any Federal Reserve initiatives that could be used for surveillance. In addition, U.S. Congressman Tom Emmer, who introduced the bill stated;<\/span><\/p>\n

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\u201cThis is an issue of privacy, individual sovereignty, and free market competitiveness,\u201d<\/span><\/p>\n<\/blockquote>\n

In contrast, Rep. Maxine Waters (D-Calif.), the panel\u2019s top Democrat, criticized the move. She accused the Republicans of taking an anti-innovation stance that could ultimately leave the U.S. <\/span>lagging behind other nations<\/span><\/a>, especially China, in the race to set global standards for CBDCs.\u00a0<\/span><\/p>\n

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\u201cThe legislation would keep the United States behind other countries and stifle research,\u201d Waters emphasized.\u00a0<\/span><\/p>\n

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Consequently, she warned of potential losses in speed, cost-effectiveness, and simplicity in future payment systems for U.S. citizens.<\/span><\/p>\n

Besides raising concerns about innovation, the proposed legislation also highlighted its timing. The House\u2019s move came even as the government faces a looming shutdown amid ongoing debates about other critical financial reforms. However, the Republicans insisted on taking proactive steps to restrict the development of a digital dollar.<\/span><\/p>\n

Senate Showdown on the Horizon?<\/h2>\n

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Significantly, this move may face hurdles in the Senate, where Democrats hold a majority. The Senate Banking Committee, led by Sen. Sherrod Brown (D-Ohio), doesn\u2019t share the same enthusiasm as House Republicans concerning digital assets.<\/span><\/p>\n

While the Federal Reserve still needs to create a CBDC, it has been engaged in foundational research. Vice Chairman for Supervision Michael Barr has clarified that any movement in this direction would require a directive from the White House and legislative approval from Congress.<\/span><\/p>\n

Hence, the bill\u2019s future remains uncertain since even if it clears the House floor, the Democrat-led Senate is less likely to offer a warm welcome. Additionally, the bill comes when most countries are either researching or have already started laying the groundwork for their CBDCs, further intensifying the global conversation around digital currencies.<\/span><\/p>\n

With such divergent views on Capitol Hill, the debate over whether to develop a U.S. CBDC is still ongoing. As the bill moves forward for further consideration, its implications for U.S. financial innovation and global competitiveness remain to be seen.<\/span><\/p>\n

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