House Member Alex Mooney of West Virginia introduced a bill against digital dollar testing that the U.S. Federal Reserve could conduct without congressional authorization.
The proposed bill seeks to prevent the U.S. Federal Reserve (Fed) from launching a digital dollar pilot project for the sake of testing its capabilities in the nation’s financial system.
Alex Mooney believes that it is necessary to prohibit not only the launch of CBDC, but also its testing in order to stop the development of the digital dollar from the beginning.
Mooney’s proposed bill has already received support from 15 other House Republicans, who are also openly opposed to expanding government oversight of citizens’ funds.
Earlier, the Fed said it had not yet made a decision on whether to launch CBDC because it requires support from Congress.
But there is nothing to stop the central bank from developing and researching its own digital currency.
Opponents of the CBDC worry that if the digital dollar does go live, it will increase government oversight of monetary transactions and violate the privacy of citizens.
Many lawmakers fear that money will be under the exclusive control of the government, and federal officials will have access to individuals’ financial data.
However, proponents of public cryptocurrencies argue that the digital dollar will expand local access to financial services by reducing transaction fees.
As a reminder, in May, Florida’s governor signed legislation banning the use of digital dollars in the state.
Later, the U.S. states of Louisiana, Alabama, and North Dakota also introduced similar bills.