BLUF: The Digital Dollar Pilot Prevention Act, introduced by Rep. Alex X. Mooney, would require explicit congressional authority for the Federal Reserve to set up CBDC pilot projects, in order to prevent potential risks and abuse of power.
Late last year, the Federal Reserve launched pilot projects for potential central bank digital currencies (CBDCs) in the United States, causing concern over the potential risks and abuse of power. As a result, Rep. Alex X. Mooney introduced the Digital Dollar Pilot Prevention Act to require explicit congressional authority for CBDC pilot projects. The bill covers the Federal Reserve board and regional banks, preventing the transition of CBDC pilots to the masses without proper authorization. While former vice-chair Lael Brainard argued the US should create a CBDC now, some fear that the Federal Reserve may be developing potential CBDCs through pilot programs as an unofficial alternative, leading representatives such as Mooney to question the Federal Reserve’s actions on CBDCs.Source…