US Lawmaker Tries Again: Blocking Digital Dollar
In a big move, a US representative named Tom Emmer has tried again to stop US banks from creating a digital version of the US dollar. This comes after the previous US president, Donald Trump, said no to a digital dollar[1]. This is a big moment in the talk about digital money in the US. Let’s find out more about this new try.
What are CBDCs?
CBDCs are like digital versions of a country’s money, made and watched over by the country’s central bank. Many countries are interested in this idea, like China and Israel[1]. But in the US, some people don’t like it because they worry about privacy and the government watching what people do with their money[3].
Emmer’s New Try: The CBDC Anti-Surveillance State Act
Rep. Emmer’s new try is a law called the CBDC Anti-Surveillance State Act. It wants to change a important US money law to stop US banks from making a digital dollar or anything like it[1]. This try has the support of many other people and comes after a similar try that happened earlier this year[1]. The law is meant to stop the government from watching what people do with their money too much[3].
Trump’s Say: No to CBDCs
Last year, President Trump said no to making a digital dollar. His order said that no US government offices can try to make a US CBDC[1][3]. This agrees with what Rep. Emmer and other people are trying to do. They think that a digital dollar could give the government too much power over money[3]. Trump’s order also wants to help private digital money, like stablecoins, instead of a government-made digital dollar[3].
Other Countries: Their CBDC Plans
While the US is saying no to CBDCs, other countries are working on their own digital money. Israel just showed a plan for a digital shekel, and the European Central Bank is thinking about a digital euro[1]. These plans show that many countries are interested in digital money and think it could help with money that goes between countries and how money works[2].
What’s Next?
The new try to stop CBDCs and Trump’s order show what the US thinks about digital money. We’ll have to wait and see if these tries work and if the US will ever have a digital dollar. This is important not just for privacy, but also for how we use money in the future.
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Sources:
– Cointelegraph
– Centre for e-Governance
– Payments Dive
– Ethio Diaspora Hub
– Binance