US Lawmaker Tries Again: No Digital Dollar
Guess what? A U.S. representative has tried again to stop the government from creating a digital version of the dollar. This time, it’s after President Trump said “no way” to a digital dollar[1]. Let’s find out why this is a big deal and what’s happening.
What’s a CBDC?
A CBDC, or Central Bank Digital Currency, is like digital cash. It’s a country’s money, but in digital form, issued by the central bank. Some countries like China and Israel are trying it out[1]. But in the U.S., not everyone is on board.
Why the Fuss?
Some people worry that a CBDC could let the government watch our money transactions too closely, which might not be good for our privacy[3]. That’s why Representative Tom Emmer has tried again to pass a law that says federal banks can’t issue a digital dollar[1].
He’s not alone. Around 100 other lawmakers support this idea. They think a digital dollar could give the government too much control over our money[3].
What Did President Trump Say?
President Trump said no to a digital dollar. He issued an order that stops federal agencies from trying to create one[1][3]. He and other Republicans think it’s better to have private digital money, like stablecoins, instead of a government-issued CBDC[3].
What About Other Countries?
While the U.S. is saying “no” to CBDCs, other countries are saying “yes”. Israel is working on a digital shekel, and the European Central Bank is thinking about a digital euro[1]. They think digital currencies could make it easier to send money across borders and improve their financial systems[2].
What’s Next?
It’s still up in the air whether the U.S. will ever have a digital dollar. The lawmaker’s bill and President Trump’s order show that many people in the U.S. don’t want one right now. But the future is uncertain, and the debate is far from over.
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Sources:
– Cointelegraph
– Centre for e-Governance
– Payments Dive
– Ethio Diaspora Hub
– Binance