Summary
- US lawmakers from both sides of the aisle introduced a bill to block the Federal Reserve from issuing a central bank digital currency.
- Advocates say CBDCs can provide better financial services to their citizens, while critics say a CBDC is a breach of privacy.
- Over 114 countries are now exploring a CBDC, with the Atlantic Council expecting 20 countries to take significant steps towards piloting one in 2023.
Introduction
US lawmakers from both sides of the aisle introduced a bill this week to block the Federal Reserve from issuing a central bank digital currency. Republican Rep. French Hill of Arkansas and Democratic Rep. Jake Auchincloss of Massachusetts introduced the bill this week, dubbed the Power of the Mint Act. Hill said it was the first bipartisan bill in Congress to block the central bank from issuing a CBDC, on the House floor this week.
Controversy Surrounding CBDCs
Advocates say CBDCs can provide better financial services to their citizens, while critics say a CBDC is a breach of privacy. Florida Governor Ron DeSantis signed a bill last week banning CBDCs, and said Florida was the first state to do so. Republicans Sen. Ted Cruz and Rep. Tom Emmer have also introduced bills to block the Federal Reserve from issuing a CBDC directly to individuals.
Growing Interest in CBDCs
More and more countries are exploring a CBDC, with 114 countries now looking into them, compared to just 35 countries in 2020, according to the Atlantic Council’s CBDC tracker. The Atlantic Council said it expects this momentum will continue this year; they predict that over 20 countries will take significant steps towards piloting one in 2023 including Australia, Thailand, Brazil, India, South Korea and Russia among others.
The controversial nature behind these currencies has led many advocates for privacy rights raising concerns about surveillance capabilities that could come along with its implementation.
With growing interest around these currencies within 114 countries worldwide – 20 being expected to take significant steps towards piloting one by 2023 – these attempts at blocking may be futile if not accompanied by an adequate alternative.
