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US Senator Against CBDC, Proposes ‘No Digital Dollar Act’

Governments worldwide are considering CBDC, also known as Digital currency. James Lanford, a Republican senator of Oklahoma, in an announcement, said that he introduced legislation that would not allow the US Treasury and the Federal Reserve to interfere in Americans’ use of paper currency if a digital currency is employed and would make sure that people enjoy privacy when using cash and coins. The law introduced is called the “No Digital Dollar Act.”

The bill will prohibit the Board of Governors of the Federal Reserve System from stopping Federal Reserve notes if a CBDC is issued and for other purposes by making amends to the Federal Reserve Act.

According to section 16 5103 of chapter 31, United States Code, no digital money issued by a central bank shall be considered legal tender. Several constituents of Senator Lankford’s office have expressed concerns that the Treasury “could phase out paper money and transition to a digital dollar,” as Lankford related. He said that many Oklahomans “still prefer hard currency or at least the option.”

Although the Federal Reserve is working hard on a digital dollar, Fed Chair Jerome Powell hinted that it would be two years before the US has a central bank digital currency (CBDC). They are evaluating both the policy issues and the technology issues at a very broad scope, Powell said.