US House Subcommittee to Discuss CBDCs in New Hearing

The United States House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion will be holding a hearing discussing central bank digital currencies (CBDCs) for the first time in months.

Republicans on the committee announced their intention to convene a hearing on the implications of releasing a CBDC and “private sector alternatives” on September 7.

The ‘Digital Dollar Dilemma’ will be discussed on September 14, approximately two weeks before U.S. Securities and Exchange Commission chief Gary Gensler is expected to testify before the full committee.

The hearing will be the first time in months that a House committee will discuss issues about the introduction of a digital currency in the United States. In August, Congress was primarily out of session.

A prospective CBDC rollout in the United States has become a 2024 presidential candidate policy position. Governor Ron DeSantis of Florida, the foremost Republican candidate behind former U.S. President Donald Trump, stated in July that he intended to ban CBDCs if elected.

Another Republican candidate trailing DeSantis, Vivek Ramaswamy, has also criticized CBDCs, equating them to China’s social credit system.

Some U.S. lawmakers have proposed various legislative approaches for addressing issues associated with a CBDC rollout in the country, including limiting the Federal Reserve’s authority to issue a digital currency.

Florida is among the U.S. states that have passed legislation prohibiting CBDCs as payment options.