Republican members on the House Financial Services Committee released principles to guide Congress’ evaluation of potential proposals for a U.S. Central Bank Digital Currency (CBDC).
The principles state that a potential Federal Reserve-issued digital currency must maintain the dollar as the world’s reserve currency and the preeminence of the U.S. payment system. It also must not impede the ongoing development of stablecoins. Further, it should promote private sector innovation and foster competition. Finally, it should address privacy and security protections.
These principles were developed by the Digital Asset Working Group, which includes Reps. Patrick McHenry (R-NC), Ann Wagner (R-MO), Blaine Luetkemeyer (R-MO), Bill Huizenga (R-MI), Andy Barr (R-KY), French Hill (R-AR), Tom Emmer (R-MN), Warren Davidson (R-OH), Ted Budd (R-NC), and Anthony Gonzalez (R-OH).
“This is a pivotal moment in the conversation around the growing role of financial technology in our everyday lives,” the Working Group Members said. “As we consider how issuing a U.S. Central Bank Digital Currency may fit into this 21st-century landscape, it is critical that lawmakers fully understand both the potential costs and benefits. That is why Financial Services Committee Republicans have crafted principles to ensure the discussion is focused on whether a Fed-issued digital currency addresses a problem rather than creating one. First and foremost, the U.S. dollar and payment system must remain the best in the world. To accomplish this goal, we must not stifle private sector innovation and competition. The ball is in Congress’ court—as the Federal Reserve cannot issue a digital currency without Congressional authority—and Republicans will continue to fully assess how a Fed-issued digital currency could impact our nation’s competitiveness and our financial system.”