#USCryptoWeek

Why are lawmakers against the Fed on the issue of the digital dollar (CBDC)?

Privacy at risk:

CBDC allows tracking every transaction in real time. Congressman Tom Emmer and Florida Governor Ron DeSantis compare this to the Chinese digital yuan, where the state controls citizens' finances. Polls show: only 33% of Americans support CBDC due to fear of surveillance.

Government control:

Opponents fear that the digital dollar will give the Fed and the government a tool to limit financial freedom—from freezing accounts to imposing expiration dates on money.

The example of Canada (2022), where the accounts of protesters were frozen, amplifies these concerns.

Threat to banks:

CBDC could compete with bank deposits if citizens start keeping money in Fed wallets. This would undermine bank liquidity and their ability to issue loans, which worries the financial lobby.

Distrust in the Fed:

The Fed, as an independent body, raises skepticism among lawmakers who believe it could implement CBDC without sufficient Congressional oversight. Historical criticism of the Fed (e.g., the 'End the Fed' movement) only heightens the tension.