- The bill was introduced by Republicans
- It would close “loopholes for CBDC manipulation” by the Fed
- Politicians urged America not to go down the path of authoritarianism
The Fed’s initiative to test CBDC has received stiff resistance from Congress. A number of Republican politicians have introduced a new bill HR 3712. It prohibits the regulator from “establishing, implementing, or approving a program designed to test the ability to issue digital currency.”
The document was supported by 14 Republicans in the House: Pete Sessions, Bill Posey, Ralph Norman, Byron Donalds, John Rose, Andy Ogles, Jeff Duncan, Greg Stube, Randy Weber, Glenn Grothman, Ronnie Jackson, Victoria Spartz, Harriet Hageman and Bob Hood.
The text states that the digital dollar is a “Fed loophole” to take control of Americans’ financial freedoms.
“Congress cannot relent an inch when it comes to CBDC. Such a currency would threaten the freedoms of law-abiding Americans. It is being used right now by authoritarian countries to stifle dissent.”
Authoritarian countries the congressmen probably mean China. The country almost forcibly forces local residents to use the digital yuan. And in doing so suppresses other competitors. For example, yesterday the Chinese police arrested the issuer of Trust Reserve stabelcoins.
In the United States, a number of states have banned CBDC testing and use at the local level.