Hearing Highlights: A Clash of Opinions

On September 14, the atmosphere in Congress resembled a heated family dinner where everyone talks over each other—lively and occasionally combative. The House of Representatives’ subcommittee took on the ‘digital dollar dilemma’, featuring five expert witnesses who mostly tossed cold water on the idea of a U.S. central bank digital currency (CBDC).

Partisan Divide: The Fringes and Fears

Opening the hearing, chair French Hill didn’t hold back, stating, “There is no support for a CBDC in Congress except from those on the fringes.” Meanwhile, Rep. Tom Emmer called the concept a tool in the hands of the ‘Communists.’ Sounds like something from a political drama, right?

The Experts Weigh In: Diverse Perspectives

Among the witnesses were names you probably wouldn’t run into at dinner parties: Yuval Rooz from Digital Asset, Paige Paridon from the Bank Policy Institute, and more. Although only Rooz had a business angle, all witnesses raised compelling doubts about the CBDC. Rooz warned that any digital dollar should prioritize privacy rights—cue the Fourth Amendment reference!

The Risks of a Digital Dollar

The discussion around a CBDC heated up quickly. Paridon argued that such a currency could undermine the current banking system, suggesting, “A CBDC could severely constrict the availability of credit to the economy.” Oh great, just what we need—a digital currency that could make banks grumpy.

Historic Contexts and Future Implications

Going all historian, Skinner placed CBDC in a historical light, suggesting a potential clash with individual economic liberties. If our founding fathers could see us now, I wonder if they’d roll over in their graves or just chuckle at our modern woes. Carrillo called out the naivety around financial surveillance—”We already live in a financial surveillance state,” he proclaimed, which should make us all a bit uneasy.

Legislative Moves and Future Research

Legislation is already catching up to the conversation with H.R. 3402 needing congressional approval for a CBDC introduction. Meanwhile, the president’s executive order from 2022 mandated research into digital currencies, leading to the establishment of initiatives like the Digital Dollar Project. But in the end, will all this be a collective shot in the dark—or a well-aimed archer’s strike at a new frontier?