A U.S. senator has introduced the Digital Dollar Ban Act, which would prohibit “the U.S. Treasury and Federal Reserve System from interfering with Americans’ use of paper currency” if a central bank digital currency is adopted. The bill further states.” No central bank digital currency shall be deemed legal tender under section 5103 of title 31, chapter 16, United States Code.”
The Digital Dollar Prohibition Act was introduced
U.S. Senator James Lankford (R-OK) on Thursday introduced the “Digital Dollar Ban Act to prohibit the U.S. Treasury and Federal Reserve from interfering with Americans’ use of paper currency if digital currency is adopted and to allow individuals to maintain privacy in their transactions using cash and coins.”
According to the text of the bill, it would “amend the Federal Reserve Act to prohibit the Federal Reserve from eliminating Federal Reserve notes if a central bank digital currency is issued, and for other purposes.”
Further, the bill elaborates that “the Secretary of the Treasury may not discontinue minting and issuing coins under this section if a central bank digital currency is issued.”
Central bank digital currency shall not be considered legal tender under 31 U.S.C. § 16-5103.
Senator Lankford explained that residents of his state have expressed concern that the Treasury Department may “phase out paper currency and transition to digital dollars.” He emphasized that many Oklahomans “still prefer coins, or at least have the option of coins.”
The senator added that “there are still questions, cyber concerns, and security risks with digital money,” and stressed that “there is no reason we cannot continue paper and digital money in our country and allow the American people to decide how they want to hold and use their money.” 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.”
Lankford emphasized.
With advances in technology, Americans should not have to worry about every transaction in their financial lives being tracked or their money being deleted.
The Congressman explained that “there is currently no federal law that prohibits the Treasury Department from only having digital currency.”
While the Federal Reserve is working on a digital dollar, Fed Chairman Jerome Powell said this week that a U.S. central bank digital currency (CBDC) would take at least several years.” We are very cautiously considering it. We are evaluating both policy issues and technology issues, and we are doing that very broadly,” Powell said.
Image credits: Shutterstock, Pixabay, Wiki Commons
