A member of the US House of Representatives introduces bipartisan legislation that explicitly prohibits the federal government from issuing a Central Bank Digital Currency (CBDC) without Congressional authorization.
During the new House Floor remarks, Representative Jake Auchincloss (D-MA) says CBDCs are controversial and need Congressional approval before being issued for proper scrutiny by those who are accountable to voters.
says Auchincloss,
“The implications for the US dollar as the world’s reserve currency and for the domestic fiscal and monetary policy of a US CBDC are hotly debated by experts. What should not be controversial, however, is that the Federal Reserve, Treasury and all other executive agencies cannot issue CBDC without explicit authorization from Congress.”
Auchincloss acknowledges that federal officials have previously stated that they would not issue CBDC without Congressional approval. However, he says a law is still needed and so he introduces the Power to Mint Act.
“While the Fed understands it cannot issue CBDC without Congressional approval, some commentators continue to suggest that legislation may not be necessary. They’re wrong. The drafters of the Constitution understood the importance of a strong and stable national currency, so they granted Congress the exclusive authority to cash money and regulate its value.
Congress must not forfeit this power, which is why I am introducing the Power to Mint Act. This bill clearly prohibits the Federal Reserve and the Treasury Department from issuing a CBDC without Congressional authorization.”
Rep. French Hill (R-AR), who is jointly submitting the bill, says that “we believe that under the Constitution that authority [to issue a CBDC] rests with Congress and the American people, not unelected bureaucrats.”
Hill says he has heard of his constituents’ concerns that a CBDC could jeopardize their financial freedom and be used for government surveillance.
“Usually my constituents from central Arkansas call my office about digital assets only when they are concerned that Uncle Sam is going to use a central bank digital currency to monitor where they spend their money and how much, and they end up blocking it use of the banking and payment system.
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