The U.S. House Financial Services Committee announced last Friday that it will discuss a new bill to prevent the issuance of a central bank digital currency (CBDC).

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Fast facts

  • Committee Chairman Patrick McHenry announced that the markup, a session where committee members examine the proposal in detail and possibly offer amendments, of the Digital Dollar Pilot Prevention Act will take place on Sept. 20.
  • The bill was first introduced by Alex Mooney, a  Republican Party representative, on May 26. 
  • “This bill would prohibit the Federal Reserve from establishing, carrying out, or approving a program intended to test the practicability of issuing a CBDC,” Mooney’s announcement said. “CBDCs pose major privacy and government surveillance concerns.”
  • He also claimed that China is utilizing its CBDC pilot program to monitor citizens and curtail banking access for government dissenters.
  • In July, the Federal Reserve said it had not decided to issue a CBDC and added that legal authorization remains a prerequisite for such developments. 
  • The Fed’s statement came as it launched FedNow, a real-time interbank payment settlement service for individuals and businesses, on July 20. According to the U.S. central bank, FedNow is unrelated to digital currencies.

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