During a press briefing, senior Democrats expressed concerns over anti-CBDC legislation, indicating its negative impact on innovation and oversight in the U.S.
Congressional Disagreements over Digital Currency
Democrats asserted that the ongoing anti-cryptocurrency legislation in Congress aims to stifle innovation and weaken oversight in the U.S. While the Biden administration advocates for research and rollout of digital currencies, Congress remains divided. President Trump, in one of his first executive orders this year, formally blocked the issuance of a federal CBDC.
Concerns Regarding Cryptocurrencies and Legislative Initiatives
Rep. Maxine Waters described recent legislative proposals, including the Anti-Surveillance State Act and the GENIUS Act, as dangerous, warning they could empower malicious actors and delay digital currency development. Rep. Stephen Lynch stated that cryptocurrencies have fueled ransomware attacks and provide no value beyond enabling illicit finance, asserting that the crypto sector should be viewed as a systemic scam.
Global Practice and Public Opinion
Meanwhile, central banks abroad are already experimenting with digital currencies. India is expanding trials for its digital rupee, Australia is preparing wholesale tests, and the UK is focusing on deposit tokenization. However, Federal Reserve Chair Jerome Powell has made it clear that there will be no U.S. CBDC under his leadership. Public opinion in the U.S. remains skeptical of a digital dollar, with recent surveys showing low support or confusion around the issue.
Thus, the clash over CBDCs and opposition to cryptocurrencies is becoming a central theme in the broader debate on the future of digital finance in Washington.
