US lawmakers from both political parties have introduced a bipartisan bill called the Power of the Mint Act to block the Federal Reserve from issuing a central bank digital currency (CBDC). The bill was introduced by Republican Representative French Hill of Arkansas and Democratic Representative Jake Auchincloss of Massachusetts.
Hill stated that it was the first bipartisan bill in Congress aimed at blocking the central bank from issuing a CBDC. He claimed that Americans have a right to financial privacy, and he is proud to stand with Auchincloss to protect civil liberties, prevent a surveillance state over everyday Americans, and maintain the role of the dollar as the global reserve currency.
Florida Governor Signs Bill Banning CBDCs
Florida Governor Ron DeSantis has recently signed a bill to ban CBDCs in Florida, making it the first state to do so. DeSantis tweeted that the push to establish CBDCs is an attempt to surveil and control the finances of Americans. He emphasized that it would violate privacy, limit consumer choice, and undermine market competitiveness.
More US Lawmakers Oppose CBDCs
Several lawmakers in the US have opposed the issuance of CBDCs. Republican Senator Ted Cruz and Representative Tom Emmer have also introduced bills to block the Federal Reserve from issuing a CBDC directly to individuals. They argue that CBDCs would breach privacy and limit consumer choice.
Global Trend Towards CBDCs
While the US is taking steps to block CBDC issuance, many other countries are exploring CBDCs. According to the Atlantic Council’s CBDC tracker, 114 countries are now looking into CBDCs, compared to just 35 countries in 2020. It is expected that this momentum will continue in the coming years, with over 20 countries planning to pilot a CBDC by 2023. These countries include Australia, Thailand, Brazil, India, South Korea, and Russia, among others. The European Central Bank is also expected to start a pilot in the near future.
The Power of the Mint Act introduced by US lawmakers aims to block the issuance of CBDCs by the Federal Reserve. While some lawmakers in the US are opposed to CBDCs, many other countries are exploring the use of CBDCs to provide better financial services to their citizens.