There is a movement among the lawmakers in the United States to prevent the creation of a central bank digital currency (CBDC), also known as a "digital dollar".
US President Donald Trump issued an executive order to ban the establishment, issuance, circulation, and use of a CBDC within the United States, arguing that it would protect Americans from risks to the financial system, individual privacy, and the sovereignty of the United States.
Sen. Mike Lee reintroduced the No CBDC Act to permanently ban the Federal Reserve from creating a CBDC, preventing the monitoring of consumer transactions. The bill is co-sponsored by Sens. Ted Cruz and Rick Scott. Rep. Andy Ogles is introducing the House companion bill.
According to critics, CBDCs could threaten privacy of the people. The could undermine the banking system by reducing incentives to bank privately.
CBDCs could allow the government to surveil and control the activities of American citizens. CBDCs create traceable and controllable digital money, which has implications for civil liberties and economic freedom.
While supporters say a CBDC could bring people without bank accounts into the US financial system. They could be used in tracing and tackling criminal activity.
Government-issued digital dollars could foster financial inclusion and protect privacy while streamlining the payment system.
China is currently piloting a digital Yuan. The EU is advancing its own CBDCs. A digital Euro pilot could launch as early as 2028.
The UK parliament has advised the Bank of England to proceed with caution regarding a digital pound CBDC.
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