The House Financial Services Committee has given its approval to a bill that seeks to limit the Federal Reserve’s progress towards a U.S. Central Bank Digital Currency (CBDC). The bill underscores the importance of citizen privacy and mandates explicit congressional approval for CBDC development.

A recent report from Bitcoin Magazine highlighted the committee’s endorsement of this crucial legislation, which is designed to curb the Federal Reserve’s efforts to develop a U.S. CBDC. Crypto expert Collin Brown acknowledged the significance of this development in a recent tweet.

The committee, led by Rep. Patrick McHenry (R-N.C.), has emphasized the need for any CBDC development to receive direct approval from Congress. As U.S. Congressman Tom Emmer introduced the bill, he stated, “This is an issue of privacy, individual sovereignty, and free market competitiveness.”

However, the bill has faced opposition. Rep. Maxine Waters (D-Calif.), a leading Democrat on the panel, criticized the Republicans’ efforts as hindering innovation. Waters warned that this could put the U.S. behind other nations, notably China, in the race to establish CBDC global standards.

The endorsement from the committee comes at a time when the U.S. government faces potential shutdowns amidst debates on other major financial reforms. Despite these looming challenges, Republicans are steadfast in their approach to halt the development of a digital dollar.

The bill’s progression might face resistance as it advances to the Senate. The Senate Banking Committee, where Democrats hold a majority and is led by Sen. Sherrod Brown (D-Ohio), might not share the same enthusiasm as their House counterparts. The Federal Reserve, although not yet working on a CBDC, has been involved in foundational research related to it. Vice Chairman for Supervision Michael Barr emphasized that any steps towards a CBDC would need a directive from the White House and legislative approval from Congress.

As the CBDC debate intensifies, the implications of this bill for U.S. financial innovation and its global standing are still unfolding.

If you found this article informative and would like to stay updated on the latest developments in the world of cryptocurrency, SUBSCRIBE!