A U.S. House Financial Services Committee hearing focused on three bills that, if passed, would limit the Federal Reserve’s ability to operate a CBDC.
Rep. French Hill, who chairs the House Financial Services Committee’s subcommittee on digital assets, rejected a possible CBDC at the start of the hearing.
Hill said, “Let me make it clear to the audience here: Congress does not support CBDC.” For Republicans and several witnesses, concerns about CBDCs are multifaceted.
One concern is the impact a digital dollar could have on traditional banking, and another is that CDBCs could crowd out the stablecoin market.
Stablecoins are digital assets issued by private companies that are pegged to fiat currencies such as the U.S. dollar, allowing traders to enter or exit positions without touching fiat currencies.