The House Financial Services Committee has announced a hearing on the digital dollar or Central Bank Digital Currency (CBDC), held by the Subcommittee on Digital Assets, Financial Technology (Fintech), and Inclusion.
Scheduled to take place on Thursday, September 14 at 2PM ET, the hearing is entitled “Digital Dollar Dilemma: The Implications of a Central Bank Digital Currency and Private Sector Alternatives.”
The list of witnesses has yet to be announced but should be forthcoming early next week.
A CBDC issued by the US government is currently being studied by the US Federal Reserve. Many other jurisdictions around the world are doing the same, with China already testing a digital yuan in public and the European Union heading down a similar path of a digital Euro.
Yet, while certain benefits may be gained, concerns remain regarding the potential for privacy issues. While Western policymakers are sensitive to safeguarding the privacy of CBDC users, past experience has proven that when given an opportunity, public authorities may abuse opportunities to use their position to an excessive degree.
At the same time, a privately issued stablecoin may be an alternative path to issuing a digital dollar that is highly regulated with stiff privacy requirements.
There appears to be a certain consensus that enabling some iteration of a digital dollar may help buttress the dollar as the world’s reserve currency.