The US House of Representatives has taken an important step towards banning central bank digital currencies in the US, passing a bill that would prevent the Federal Reserve (FED) from creating such a currency.
No Central bank digital currency In America?
The US House of Representatives has voted in favor of a bill that would block the creation of a central bank digital currency (CBNC) by the Federal Reserve (FED).
The poll, which took place on Thursday, May 23, highlights the future political and financial divisions of digital currency in the United States, largely on a partisan basis.
👉 Central Bank Digital Currencies (CBNC) – What are they and how do they work?
The bill, the Anti-CBDC Surveillance State Act, passed by a vote of 216 to 192. Three Democrats joined Republicans in supporting the bill, while 192 Democrats opposed it. The bill was introduced in September 2023 by Representative Tom Emmer.
Supporters of the bill have expressed concern over the potential for increased government surveillance by the MNBC. They say the central bank's digital currency could give the central government the ability to monitor individuals' transactions and control their financial activities.
Maxine Waters, the ranking Democrat on the House Financial Services Committee, criticized the bill as “anti-innovation.” He also emphasized that the Federal Reserve is yet to take a final decision on the formation of MNBC.
Federal Reserve Chairman Jerome Powell told lawmakers in March that the Fed was “not close” to recommending or adopting an MNBC.. He also emphasized that if the central bank creates an MNBC, it will do so through the existing banking system.
Even if the bill passes in the House, it is unlikely to pass in the Senate, which has a majority of Democrats. Additionally, the Federal Reserve has already indicated that it will not issue MNBCs without Congressional approval.
Bitwao: Trade up to €10,000 in cryptocurrencies without fees
Potential impact of inhibiting MNBCs
The House vote highlights debates about the future of digital currency in the United States. Proponents of MNBCs highlight their potential advantages in solvency and financial inclusion. Opponents fear a loss of government oversight and control of the currency.
👉 In more news – France: IMF calls for more efforts to reduce deficit
This anti-MNBC bill could have bigger implications than the US central bank banning digital currency. TD Cowen, a US-based investment bank, has warned that the ban could harm US banks and the global dominance of the US dollar.
According to TD Gowan, a ban on MNBCs in the US would give the euro or other digital currencies an advantage in international trade. The dollar as we know it today may lose value against other fiat currencies.
The debate over MNBC is likely to continue in the coming years as central banks and governments around the world examine the potential benefits and risks of this new monetary technology.
Cryptocurrency Research: Don't waste this bull run, surround yourself with experts
Source: Prohibition
Newsletter 🍞
Get a summary of crypto news by email every Monday 👌
All you need to know about affiliate links. This page may feature assets, products or services related to investments. This article may contain some links. If you buy a product from this article or register on the site, our partner pays us a commission. This allows us to continue to provide original and useful content. No harm to you, you can get bonus by using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services provided on this page and cannot be held directly or indirectly liable for any damage or loss arising from the use of any material or service featured in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and invest only within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. High returns are not guaranteed, a product with high return potential involves high risk. This risk taking should be consistent with your plan, your investment horizon and your ability to lose a portion of these savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our financial situation, media transparency and legal notices pages.
“Certified food fanatic. Extreme internet guru. Gamer. Evil beeraholic. Zombie ninja. Problem solver. Unapologetic alcohol lover.”
More Stories
Indonesian Embassy Canberra CESA promotes Indonesian language learning in Australia
As the British Assembly elections approach, Rishi Sunak prepares for defeat
Strange giant ducks lived in Australia 50,000 years ago