A U.S senator has introduced the “No Digital Dollar Act to prohibit the U.S. Treasury and the Federal Reserve from interfering with Americans using paper currency” if a central bank digital currency is adopted. The bill further states: “According to section 16 5103 in title 31, United States Code no digital currency central bank shall be legal tender.”
No Digital Dollar Act Introduced
U.S. Senator James Lankford (R-OK) announced Thursday that he has introduced a bill titled “No Digital Dollar Act to prohibit the U.S. Treasury and the Federal Reserve from interfering with Americans using paper currency if a digital currency is adopted and makes certain individuals can maintain privacy over their transactions using cash and coins.”
The bill will “amend the Federal Reserve Act to prohibit the Board of Governors of the Federal Reserve System from discontinuing Federal Reserve notes if a central bank digital currency is issued, and for other purposes,” according to the text of the bill.
Furthermore, “the Secretary of the Treasury may not discontinue minting and issuing coins under this section if a central bank digital currency is issued,” the bill details, adding:
No central bank digital currency shall be considered legal tender under section 16 5103 of title 31, United States Code.
Senator Lankford explained that residents in his state have expressed to him their concern that the Treasury “could phase out paper money and transition to a digital dollar.” He stressed that many Oklahomans “still prefer hard currency or at least the option of hard currency.”
The lawmaker added, “There are still questions, cyber concerns, and security risks for digital money,” emphasizing: “There is no reason we can’t continue to have paper and digital money in our nation and allow the American people to decide how to carry and spend their own money.”
Americans don’t need to worry that every financial transaction is being recorded or their money lost, as technology continues to improve.
The lawmaker explained that “There is currently no federal statute that prohibits the Treasury from only having a digital currency.”
Jerome Powell, Fed Chair, said that while the Federal Reserve works on a digital dollars this week it will be at least two years before a U.S. central banking digital currency (CBDC). “We are looking at it very carefully. We are evaluating both the policy issues and the technology issues, and we are doing that with a very broad scope,” Powell said.
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