US Lawmakers Introduce Bill to Halt Federal Reserve’s Digital Dollar Testing

US Lawmakers Introduce Bill to Halt Federal Reserve’s Digital Dollar Testing – U.S. Congressman Alex Mooney (R-WV) recently presented the Digital Dollar Pilot Prevention Act (H.R. 3712) with the aim of prohibiting the Federal Reserve from engaging in or endorsing any initiatives that test the feasibility of introducing a central bank digital currency (CBDC)

Congressman Mooney argues that CBDCs pose a threat to the freedoms of law-abiding Americans and are currently being utilized by authoritarian nations as a means to suppress dissent. The lawmaker clarified: “Specifically, this bill would prohibit the Federal Reserve from establishing, carrying out, or approving a program intended to test the practicability of issuing a CBDC.”

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Fourteen House Republicans, including Pete Sessions, Bill Posey, Ralph Norman, Byron Donalds, John Rose, Andy Ogles, Jeff Duncan, Greg Steube, Randy Weber, Glenn Grothman, Ronny Jackson, Victoria Spartz, Harriet Hageman, and Bob Good, are co-sponsors of the bill.

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“Congress cannot give an inch when it comes to CBDCs,” Rep. Mooney stressed, emphasizing: “CBDCs would threaten the liberties of law-abiding Americans and are being used by authoritarian countries right now to crack down on dissent.”

“That’s why closing this pilot program loophole is so important — to prevent the Federal Reserve from bypassing the will of Congress,” he noted. Various individuals have raised significant concerns regarding the privacy implications and potential government surveillance associated with central bank digital currencies (CBDCs). 

Congressman Mooney highlighted that the Federal Reserve drew attention in the recent past due to its CBDC pilot initiatives, even partnering with the private sector to develop potential CBDCs for the United States, which exceeded the boundaries of conventional research.

Congress has seen the introduction of several bills related to central bank digital currencies (CBDCs), including the “No Digital Dollar Act” by U.S. Senator Ted Cruz and the “CBDC Anti-Surveillance State Act” by Congressman Tom Emmer. Additionally, several states have expressed opposition to the Federal Reserve’s implementation of a digital dollar.

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For instance, Florida Governor Ron DeSantis signed a legislation in March that prohibits the use of a CBDC within the state. However, Federal Reserve Chairman Jerome Powell stated in March that the Fed has not reached a point of making concrete decisions regarding CBDCs. He mentioned that the central bank is currently engaged in early-stage experimentation as opposed to making substantial determinations.

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