Breaking: US Representative Unveils Bill To Block CBDC Pilot Program

Coingapestaff
May 31, 2023
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cbdc program

A growing number of Republican lawmakers are calling to block a central bank digital currency (CBDC) from being issued in the United States. In the latest development, Rep. Alex Mooney of West Virginia has introduced the Digital Dollar Pilot Prevention Act, which aims to prevent the Federal Reserve from launching a pilot program to test the operability of a CBDC within the U.S. financial system.

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Mooney Leads Efforts To Prevent CBDC

While anti-CBDC sentiment is not new, Mooney’s bill specifically addresses the possibility of a pilot program, aiming to close the “loophole” that could allow the Federal Reserve to implement a test run without congressional permission. According to recent reports, the proposed legislation would effectively halt the development of a CBDC at its very origin.

Read More: Binance Explores Partnership With Banks To Offset Crypto Risk

In April, the Federal Reserve stated that it had not yet decided on issuing a CBDC and emphasized the importance of clear support from Congress. Moreover, the Office of Science and Technology Policy also sought input on CBDC-related research and development initiatives earlier this year.

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Concerns Grow Over Govt. Surveillance

CBDCs critics have voiced concerns over increased government surveillance and threats to privacy if the Federal Reserve were to implement a digital dollar. With money becoming entirely digital and under sole government control, some argue that a CBDC would grant federal officials unprecedented access to individuals’ financial data. Loyalists, on the other hand, argue that a digital dollar could enhance financial inclusion in the U.S. by eliminating transaction fees that currently exclude many Americans from accessing financial services.

The 51-year-old Republican cited China’s rollout of its digital yuan pilot program as an example, expressing concerns that what initially began in four cities has now expanded to over 25 cities, with the eventual goal of nationwide implementation. Mooney’s proposed legislation has already won the backing of 15 other Republicans serving in the House of Representatives. Among them are Representatives Pete Sessions of Texas, Bill Posey of Florida, and Byron Donalds of Florida, all of whom have been outspoken advocates for reducing the scope of government supervision and intrusion.

As the debate surrounding CBDCs intensifies, the fate of the Federal Reserve’s potential pilot program remains uncertain. Whether the Digital Dollar Pilot Prevention Act gains traction in Congress and shapes the future of digital currency in the United States remains to be seen.

Also Read: Hong Kong & UAE Join Forces To Regulate Cryptocurrencies

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.