House committee will reopen discussions on digital dollar in Sept. 14 hearing

Following an August recess, members of the House Financial Services Committee will gather for a ‘Digital Dollar Dilemma’ hearing on Sept. 14.

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.

In a Sept. 7 announcement, Republican lawmakers on the committee said they planned to hold a hearing discussing the implications of releasing a CBDC as well as “private sector alternatives”. The ‘Digital Dollar Dilemma’ discussion will be held on Sept. 14, roughly two weeks before U.S. Securities and Exchange Commission chair Gary Gensler will reportedly testify before the full committee.

#NEW: Chairman @PatrickMcHenry announces hearings of the Subcommittees on Financial Institutions and Monetary Policy & Digital Assets, Financial Technology and Inclusion.

Read more https://t.co/pSVdU5UVHu

— Financial Services GOP (@FinancialCmte) September 7, 2023

The hearing will mark the first time in months lawmakers in the House committee will address issues related to the rollout of a digital dollar in the United States. Members of Congress were largely in recess for August.

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A potential CBDC rollout in the U.S. has become a policy position for a few presidential candidates running in 2024. Florida Governor Ron DeSantis, the leading Republican Party candidate behind former U.S. President Donald Trump, said in July he planned to ban CBDCs if elected. Vivek Ramaswamy, another Republican candidate trailing behind DeSantis, has also criticized CBDCs, comparing the technology to China’s social credit system.

Some U.S. lawmakers have proposed different legislative approaches to tackling issues related to a CBDC rollout in the country, including limiting the Federal Reserve’s authority over issuing a digital dollar. Various U.S. states have also passed bills banning CBDCs as payment options, including Florida.

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