US lawmaker lays out case for a digital dollar #Crypto #cryptocurrency

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Connecticut House of Representatives member Jim Himes has launched a proposal aiming to begin a dialogue on the United States probably launching a central financial institution digital foreign money, or CBDC.

In a white paper launched on Wednesday, Himes urged Congress to start exploring the rollout of a digital dollar issued by the Federal Reserve to prevent the federal government from falling behind in improvements in monetary technology. According to the U.S. lawmaker, a CBDC “should not be thought of as replacing legacy payment systems and currencies but as an additional alternative for consumers and businesses.”

The white paper laid out a proposal wherein a CBDC might current considerations over transparency, safety, and privateness compared with fiat foreign money. Himes added that any regulatory framework on CBDCs enacted by Congress ought to embody “strong user identification processes that require intermediaries to certify the identity of wallet holders,” with the Federal Reserve and “participating commercial entities” establishing steering.

“The longer the United States government waits to embrace this innovation, the further we fall behind both foreign governments and the private sector,” stated Himes. “It is time for Congress to consider and move forward with legislation that would authorize a U.S. CBDC.”

Source: CBDC white paper, Representative Jim Himes.

Different companies and departments throughout the U.S. authorities have explored the attainable results of a digital dollar within the occasion officers resolve to launch one. In May, the Fed information/fed-paper-looks-at-potential-effects-of-cbdc-on-monetary-policy”>launched a report concluding that “monetary policy implementation from a retail CBDC are highly dependent on the initial conditions of the Federal Reserve’s balance sheet.” 

Related: information/democrat-division-over-crypto-isn-t-all-bad-news-for-regulation”>Democrat division over crypto isn’t all unhealthy news for regulation

Among lawmakers within the United States, Himes has typically information/us-lawmakers-and-fed-chair-push-for-crypto-regulation-in-wake-of-russia-sanctions”>pushed for congressional motion on cryptocurrencies — particularly regarding the technology getting used for Russia probably evading sanctions — and information/crypto-policy-advocacy-group-warns-of-disastrous-provision-in-a-new-us-bill”>launched a part of a invoice which many criticized as giving the Treasury Secretary unchecked energy over bitcoin-for-beginners”>sure crypto transactions. Minnesota Representative Tom Emmer additionally information/us-lawmaker-proposes-bill-aimed-at-limiting-fed-s-ability-to-issue-cbdc”>launched a invoice in January aimed toward stopping the Fed from appearing as a retail financial institution within the potential issuance of a digital dollar, suggesting lawmakers haven’t but reached consensus on a U.S. CBDC.