The introduction of a bill by Republicans that would ban the distribution of CBDCs by the Federal Reserve to individual citizens has sparked criticism from Democrats.
During the document’s presentation to the House Financial Services Committee, one of its authors, Republican Tom Emmer from Minnesota, argued that the implementation of programmable money would give the government the ability to monitor and limit citizens’ financial transactions.
“This is not only concerning, it goes against the fundamental principles of our country,” he stated.
However, this stance was met with resistance from Democrats. Representative Maxine Waters from California expressed opposition to the bill, calling it “anti-innovation.”
She argued that it would hinder progress and hinder the US’s ability to compete globally, potentially leading to a loss of the dollar as the world’s reserve currency and citizens losing out on faster and more efficient payment options.
The Atlantic Council reports that over 130 countries are currently developing their own CBDCs, which make up 98% of the world’s gross domestic product.