Members of the House Financial Services Committee have asked Federal Reserve Vice Chair Lael Brainard to clarify her position on a central bank digital currency ahead of deadlines set by the US president’s executive order. , Joe Biden, on digital assets.
In a letter sent Wednesday to Brainard, 24 Republican lawmakers, including Ranking Member Patrick McHenry, asked the Fed Vice Chair to answer whether the central bank intended to “restrict the use of digital assets and other innovative private sector payment methods” by launching a digital dollar. They also asked what the role of Congress might be in passing legislation in support of a US central bank CBDC digital currency.
#NEW: All Committee Republicans—led by @PatrickMcHenry—sent a letter to @federalreserve Vice Chair Lael Brainard.
They are demanding she clarify her testimony regarding the Fed’s authority to issue a #CBDC.
⬇️ Read more https://t.co/9kyYj4jTda pic.twitter.com/tinzuysJE8
— Financial Services GOP (@FinancialCmte) September 8, 2022
Brainard addressed the committee in May on the benefits and risks of a digital dollar, suggesting at the time that placing limits on CBDC holdings and not offering interest on accounts with digital dollars could help preserve the role of credit unions. and maintain some aspects of traditional banking. House Republicans asked for clarification on whether the Fed may be considering a “brokered model” for a digital dollar that might require “direct congressional authorization” to establish, as well as what role the White House might play:
“Please describe what the ‘strong support’ from the executive branch consists of. Is it in the form of a letter or an executive order?”
Lawmakers and regulators on both sides of the aisle have raised concerns about the Fed’s introduction of a CBDC. Fed Chairman Jerome Powell previously suggested there was no rush in the US to launch a digital dollar despite that countries like China are moving forward with theirs. Connecticut Rep. Jim Himes also released a white paper in June proposing that Congress “begin the process of considering and ultimately passing legislation authorizing the issuance of a US CBDC.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.