US House Subcommittee to Hold Hearing on CBDCs Amidst Growing Interest and Policy Debates
Summary:
The United States House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion will hold a hearing to discuss central bank digital currencies (CBDCs) for the first time in months. The hearing, titled 'The Digital Dollar Dilemma', will explore the implications of a CBDC release and consider private sector alternatives. This comes as the possibility of a CBDC rollout gains attention from presidential candidates and lawmakers propose legislative approaches to address related issues.
The Subcommittee on Digital Assets, Financial Technology and Inclusion within the United States House Financial Services Committee will convene a hearing to discuss central bank digital currencies (CBDCs) after months of hiatus. Republican members of the committee announced their intention to hold the hearing which will explore the implications of launching a CBDC as well as alternative solutions from the private sector. Dubbed as the 'Digital Dollar Dilemma', the discussion is scheduled to take place on September 14, just two weeks before Gary Gensler, Chair of the U.S. Securities and Exchange Commission, testifies before the full committee. This hearing will be the first opportunity for lawmakers in the committee to delve into the important topic of a digital dollar rollout in months, as most members of Congress were on recess during the month of August. The prospect of implementing a CBDC has already become a policy stance for some presidential candidates vying for the 2024 election, with Florida Governor Ron DeSantis, a prominent Republican candidate, announcing his plan to ban CBDCs if elected. Similarly, Vivek Ramaswamy, another Republican contender, has expressed criticism towards CBDCs by drawing parallels with China's social credit system. In response to the growing interest in CBDCs, some U.S. lawmakers have proposed different legislative approaches to address the challenges associated with their implementation, including limiting the Federal Reserve's authority in issuing a digital dollar. Furthermore, several U.S. states have passed bills prohibiting the use of CBDCs as payment options, with Florida being among them. As the debate surrounding CBDCs intensifies, the question arises whether they pose a threat to the existing cryptocurrency framework.
Published At
9/7/2023 7:50:00 PM
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