Are Congressional Republicans About To Greenlight a CBDC?

COMMENTARY Markets and Finance

Are Congressional Republicans About To Greenlight a CBDC?

Jun 22, 2023 4 min read
Peter St Onge, PhD

Visiting Fellow and Mark A. Kolokotrones Fellow

Peter is a Visiting Fellow and the Mark A. Kolokotrones Fellow in Economic Freedom at The Heritage Foundation.
It would be tragic if a China-style CBDC is forced on the American people by Republicans who, at best, didn’t understand what they voted for.  Chor muang / Getty Images

Key Takeaways

The idea of a CBDC is to replace the U.S. dollar with a government crypto-token tracking ledger that could surveil and control every dollar you spend.

A CBDC run through a contractor could even help force you into that holy grail of economic central planners: negative interest rates.

The federal government has no business running a CBDC, even if it hires contractors to do the dirty work. 

If Republicans want to prevent the introduction of a central bank digital currency (CBDC) that would allow government to track and control your purchases, they’d better scrutinize the two anti-CBDC bills before Congress. There’s a huge difference between them. 

One would prevent a CBDC surveillance token from replacing the American dollar. The other would actually greenlight a CBDC by government-chosen contractor.  

This piece originally appeared in The Hill on 6/05/2023