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US lawmaker presents case for digital dollar

US lawmaker presents case for digital dollar

Connecticut House of Representatives member Jim Himes has issued a resolution that aims to start a dialogue on the United States potentially launching a central bank digital currency, or CBDC.

In a white paper released Wednesday, Himes to plead strongly Congress to begin exploring rollout of Federal Reserve-issued digital dollar prevent The government lags behind in innovations in financial technology. According to the US lawmaker, CBDCs “should not be thought of as a replacement for outdated payment systems and currencies, but as an additional option for consumers and businesses.”

The white paper proposed a proposal that CBDCs could raise concerns over transparency, security and privacy compared to fiat currency. Himes said that any regulatory framework on CBDCs enacted by Congress must include “robust user identification procedures, requiring intermediaries to authenticate wallet holders’ identities with the Federal Reserve,” and “participating commercial entities” establish guidance.

“The longer the United States government waits to adopt this innovation, the more likely we will fall behind both foreign governments and the private sector,” Himes said. “It is time for Congress to consider and move forward the legislation authorizing US CBDCs.”

Source: CBDC White Paper, Rep. Jim Himes.

Various agencies and departments within the US government have explored the potential implications of a digital dollar when officials decide to launch one. In May, the Fed released a report concluding that “monetary policy implementation from retail CBDCs is highly dependent on the initial conditions of the Federal Reserve’s balance sheet.”

related: Democrats Split on Crypto Isn’t All Bad News for Regulation

Among lawmakers in the United States, Himes has often pushed for congressional action on cryptocurrencies – particularly in relation to the technology used to examine Russia’s ability to evade sanctions – and a bill. introduced a clause of the Act which was criticized by many as giving unneeded power to the Treasury Secretary. above Certain crypto transactions. Representative Tom Emmer of Minnesota also introduced a bill in January aimed at preventing the Fed from acting as a retail bank in the potential issuance of a digital dollar, suggesting that lawmakers have yet to hold common ground on US CBDCs. Consent has not been reached.

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US lawmaker presents case for digital dollar

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