The US Congress met Wednesday to rule on several national security issues in a heated exchange between Democrats and Republicans in the House Financial Services Committee. It has been a hot month for the US Government and crypto, and tensions increased as the Committee moved forward with legislation preventing the Federal Reserve from minting a central bank digital currency (CBDC).
CDBC Digital Currencies Are “Un-American” According To New Bill
The United States Federal Reserve had been toying with the idea of a central bank-issued digital alternative to the US Dollar. Potential advantages of a digital currency include greater sovereignty over finances, smaller transfer fees and faster transaction times. However, Republican Tom Emmer’s “CDBC Anti-Surveillance State Act” claims that a government-backed digital currency can be weaponized against civilians.
Emmer said: “…a central bank digital currency is a government-controlled programmable money that, if not designed to emulate cash, could give the federal government the ability to surveil and restrict American’s transactions. This is not just alarming – it’s downright un-American.”
The Senate Awaits
While Emmer’s Bill has advanced through the House Financial Services Committee, several stumbling blocks remain before it becomes legislation. The Senate has a Democratic majority and appears set to push back against the controversial Act.
Committee member and Democratic Congressman Stephen Lynch did not mince words: “With all due respect, this bill is an act of breathless stupidity.”
CDBC In Australia Still A Few Years Away
While the United States has been a hotbed for crypto-related regulation this year, they are far from the only nation exploring a federally-backed digital currency. In fact, over 130 countries have publicly expressed interest in a potential CBDC. One of these countries is Australia, where the Reserve Bank (RBA) is currently partnered with industry experts to research the potential benefits of an AUD-based digital currency.
Initial results uncovered a few issues that may delay a push toward a federally-backed digital currency in Australia. A report published by the RBA praised tokenization’s potential for innovation. However, it noted that government and industry heads must work through several technical and legal frameworks before a national CDBC can become a reality. Additionally, the pilot project found that certain companies may struggle to find secure management solutions for cryptographic keys – vital to issuing and maintaining a blockchain-based fiat currency.
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