A Congressman purposed a bill to the US Federal Reserve to maintain all the features with Digital Dollar (US CBDC) just like cash.
In the present time, the majority of the dominant central banks are doing their development and research on Central Bank Digital Currency (CBDCs). Recently, the US Government also showed huge interest in CBDCs research and development to maintain the future and dominance of the US dollar in the world at the top.
As we know that there are huge advantages with the use of CBDCs in the payment system over traditional payment solutions but besides all these, there are some flaws, which are not better to use CBDCs but that can be fixed through better engineering and rules.
Tom Emmer, Congressman from Minnesota, proposed a bill regarding the US Digital Dollar ( US CBDC). Through the proposed bill, lawmaker suggested bringing a rule and system in the US CBDC, so that people can maintain their privacy and that will remain out of the 100% centralization of the Fed.
Congressman noted that the requirement of a user to open an account with the Fed will force the Fed to follow the path of China’s CBDC authoritarianism.
“Requiring users to open up an account at the Fed to access a US CBDC would put the Fed on an insidious path akin to China’s digital authoritarianism”
Tom also asserted that US CBDC should be open, permissionless, and private. And also it should have the same nature as Cash i.e to have private of the CBDC users.
“digital dollar must be accessible to all, transact on a blockchain that is transparent to all, and maintain the privacy elements of cash”
These are showing that lawmakers of the US are still not in favour of the adoption of CBDCs in payment solutions. And at the same time, it also hints that more and more research is needed on CBDCs adoption benefits and disadvantages, so the US government may bring a solution for the same.