- Republican-backed bill on CBDCs faced sparse attendance, with concerns over abuse and criticism of drafting
- Execs believe CBDCs are a potential threat to financial freedom
With the United States gearing up for another round of presidential elections, the digital assets landscape has seen some notable shifts. None, perhaps, more notable than former President Donald Trump declaring his acceptance of crypto-donations for his campaign.
In fact, even the current Biden administration, previously perceived as being anti-crypto, has taken significant strides towards embracing cryptocurrencies. The same was evidenced by President Biden expressing his eagerness to collaborate with Congress to provide regulatory clarity for digital assets in the United States.
Key crypto bills passed amid election year
In a series of recent developments under the Biden administration, on 23 May, the CBDC Anti-Surveillance State Act was approved by the U.S House of Representatives in a largely partisan vote.
Additionally, on 22 May, the Financial Innovation and Technology for the 21st Century Act (FIT21 Act) was also passed, despite President Biden’s opposition to the same.
These consecutive actions demonstrate significant progress being made in U.S cryptocurrency regulations. Especially since they follow the repeal of the SEC’s Staff Accounting Bulletin 121 (SAB 121) on 16 May.
Impact on the digital asset landscape
The CBDC news was met with great enthusiasm by the crypto -ommunity, as noted by an X user- ‘Bitcoin for Freedom’. In a recent post, he commented,
“Game theory forced the US House to ban CBDC even though they would love it. They see that they would get left behind. Time for #bitcoin. This is insanely bullish!”
Opposing the idea of CBDCs, the Republicans issued a bill to the United States House of Representatives and said,
Source: Congress.gov
However, it’s worth noting that the debate on the Republican-backed bill debate was lightly attended. The Republicans worried about CBDC abuse, while the Democrats criticized the bill’s drafting.
Commenting on the matter, Rogan O’Handley, aka DC Draino, one of Trump’s top presidential surrogates and political influencers said,
“CBDC is one of the greatest threats to our freedom b/c the gov’t could track every dollar you spend and even “turn off” your money.”
Just a day prior to the vote on the CBDC Anti-Surveillance State Act, Tom Emmer, Majority Whip of the U.S House of Representatives, highlighted the adverse effects of CBDCs in a series of posts. He claimed,
Source: Tom Emmer/X
Global acceptance of CBDCs
Amidst uncertainty surrounding the rollout of CBDCs, Europe will soon unveil its own digital currency: The Digital Euro.
According to European Central Bank President Christine Lagarde, the Digital Euro will be utilized as a tool for exerting control. However,
“Digital Euro is going to have a limited amount of control. There will be control…. As zero control could be dangerous.”