A US congressman has introduced legislation to prevent the Federal Reserve from funding the CBDC
A representative from West Virginia’s second congressional district has introduced new legislation to prevent the Federal Reserve from conducting trials by deploying a central bank digital currency (CBDC).
As stated in a news release, the “Digital Dollar Pilot Prevention Act,” introduced by Representative Alex X. Mooney, would prevent the Federal Reserve from conducting a pilot programme to assess the viability of issuing a CBDC.
The press release states that more than a dozen Republican members of the House have committed to becoming the bill’s initial co-sponsors.
Mooney argues, “The CBDC issue is one where Congress cannot compromise. CBDCs are now employed by authoritarian governments to clamp down on dissent and would threaten law-abiding Americans’ rights.
This pilot programme loophole must be closed to prevent the Federal Reserve from ignoring the will of Congress. I am pleased to put up this bill to achieve that goal.”
The announcement also notes that Republican members of the House have been vocal about their belief that the Fed lacks the jurisdiction to issue a CBDC without the permission of Congress. The paper claims that CBDCs provide severe issues with privacy and government spying.
“As part of a ‘pilot’ programme, China is now issuing CBDC to the public to track the financial dealings of its citizens and deny them access to financial institutions. Legislation is required to prevent the Federal Reserve from giving a CBDC as part of a pilot programme and halting the currency’s current development.”