Republican Representative French Hill Proposes Legislation to Prohibit Fed from Issuing Digital Currency Without Congressional Approval
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Republican Representative French Hill Proposes Legislation to Prohibit Central Bank Digital Currency
Republican Representative French Hill of Arkansas has introduced a bill that aims to prevent the Federal Reserve from issuing a central bank digital currency (CBDC) without explicit permission from Congress. In an interview with Forbes, Hill supported the Fed’s efforts to modernize the payment system but emphasized the need to separate this system from the creation of a CBDC.
“I sat with @stephen_erlich from @forbescripto to discuss all matters #encrypt. Read more ⬇️”
– French Hill (@RepFrenchHill) August 23, 2023
Hill supports the development of private sector innovation in dollar-based stable currencies to determine the necessity and desirability of this payment technology. He believes that the introduction of CBDCs should adhere to clear legal frameworks and require approval from Congress. Hill also stressed Congress’s role in ensuring public trust and addressing concerns about privacy and Fourth Amendment protections.
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Hill argues that users can only have confidence in CBDCs if they are authorized by Congress. He proposes that Congress should be responsible for managing the development of CBDCs to ensure transparency and accountability.
Growing Opposition Against CBDCs
Hill is not the only policymaker opposing CBDCs. Federal Reserve Governor Michele W. Bowman has expressed concerns about the risks outweighing the benefits of CBDCs. Republican Congressman Warren Davidson has also criticized CBDCs, describing them as tools for coercion and control. Many Republicans share these concerns, particularly regarding the potential for a centralized digital currency.
With Hill’s legislative proposal, the debate surrounding CBDCs in the US continues to intensify. While proponents highlight potential benefits and global competitiveness, skeptics raise concerns about privacy, security, and implications for the financial system. The role of Congress in shaping the future of the country’s digital currency will be crucial as discussions progress.