US House of Representatives approved law prohibiting the FED from issuing a CBDC – DiarioBitcoin

With 216 votes in favor and 192 against, the bill was approved by legislators. This prohibits the FED issue a CBDC or digital dollar, thus ensuring that this asset is used as a tool that violates civil rights.

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• House of Representatives passed a law against the issuance of a CBDC
• The law prohibits the FED can issue and manage a CBDC that operates like a digital dollar
• This seeks to prevent the currency from being used as a mechanism for violating rights.
• The FED clarified that he was not even close to issuing a CBDC, and that it would be something that they would do jointly with the banks
• Yesterday the FIT21 Law, which establishes a first framework for approaching the crypto market in the US.

After a new round of voting in the House of RepresentativesUS lawmakers approved a bill introduced by Congressman Tom Emmer, which prohibits Federal Reserve (FED) the issuance of a cryptocurrency issued and regulated by the government entity (CBDC).

Bill passed against a CBDC

After a balance of 216 votes in favor and 192 against, the State CBDC Anti-Surveillance Law managed to pass the vote with majority support. According to a report carried out by the media The Block, The entire Republican faction supported the legislative proposal, also adding three other congressmen from the Democratic wing.

According to statements by Congressman Emmer, the recently passed bill addresses concerns that the FED make use of digital currency as a tool that violates the rights of Americans. At the time, he alleged that these types of tools could be used by the government as a surveillance mechanism, which could escalate and become a weapon to undermine political dissent.

For its part, the bill also met with strong criticism from the Democratic wing, who called the initiative “against innovation”this in light of accusations that it may be a tool that violates rights.

Federal Reserve Considerations

Although the approval of the bill closes paths for the issuance of a CBDC, the truth is that the Federal Reserve It has already spoken previously about what this initiative would be like if it were carried out, revealing what would be the management they would do with this asset in the face of the increasingly palpable need to have a digital dollar.

In this regard, the president of the FED, Jerome Powell indicated that the issuance of a digital dollar would be something that would be done through the banking system, so it would not be something similar to the creation of an account for each resident of the country. He also claimed at the time that they would follow a completely different approach than China, so they would not use it as a monitoring tool.

Last year, the entity published a report in which it examined the pros and cons of issuing a CBDC, and they made it clear that this asset would not see the light of day if it did not have the approval of the US Congress

Law voted FIT21

The approval of the new resolution against a CBDC American occurred within the framework of the votes for the FIT21 Law, project that was victorious after voting and establishes certain regulatory provisions for cryptocurrencies, mainly empowering the Commodity Futures Trading Commission (CFTC) as the body responsible for supervising said market.

This law was not free from criticism, since both the White House as the president of the Securities and Exchange Commission (SEC), Gary Gensler, made harsh accusations against them, mainly highlighting that they break with the structure and regulatory trajectory that the US has been applying to address these assets.

The bill also creates a process to allow secondary market trading of digital products if “initially offered as part of an investment contract” and includes provisions on stablecoins and against money laundering.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

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