Democrat lawmaker Maxine Waters has expressed disappointment at a bill sponsored by Republican lawmakers, referring to it as ant-innovation. Waters was speaking during deliberations at the house today Wednesday.
The bill tagged “CBDC Anti-Surveillance State Act,” HR 5403, seeks to stop the Federal Reserve from issuing a CBDC directly to individuals and is sponsored by Rep. Tom Emmer, who said is being supported by 50 other Republicans.
“The Republican bill before us today would stifle that research and prevent us from moving forward even if it means that the dollar loses its status as the world’s reserve currency and even if it means that U.S. citizens lose out on faster, cheaper and simpler payments,” Waters said on Wednesday. “I am disappointed that Republicans have taken such a deeply anti-innovation stance.”
The bill is one of several others being marked up on Wednesday on the floor of the house. Republicans have been fighting against the idea of a CBDC since the government initiated an investigation into the possibility of issuing one last year.
Most notable among them are Florida governor and presidential contestant Ron DeSantis who has enacted a law banning the use of a federal CBDC in the state. DeSantis also promises to eliminate any idea of a CBDC in the U.S. should he become the president.
Waters Defends CBDC
Although the Fed has done some investigation to weigh the pros and cons of issuing a CBDC, it is not yet close to actually implementing one. However, deliberations have been ongoing in the house concerning the idea. Waters further gave an explanation justifying the need for a CBDC.
“At this point, nobody fully understands the potential benefits and challenges of CBDCs or how their implementation could affect the preeminence of the U.S. dollar and global finance more broadly. That is why the Biden administration and the Federal Reserve are researching this,” Waters said.
Other Democrat house members have also spoken in favor of issuing a CBDC, saying that it is necessary to maintain the U.S’s position as the world’s financial leader.
Democrats Being Contradictory
The Democrats have taken a pro-innovation stance concerning a CBDC as they express support for it. However, Democrats have been against cryptocurrency technology in general from the start, referring to it as an industry that should be banned.
This makes their position on CBDC rather contradictory, since they have been anti-innovation with crypto. Already, there have been reservations about a CBDC that it could be used as a surveillance tool, an idea the Democrats are quick to dismiss. The debate is still ongoing, and it remains to be seen if the U.S eventually issues a CBDC or not.