Natural State News

Rep. Bill Foster (D-IL) and Rep. French Hill (R-AR) recently introduced bipartisan legislation called the Central Bank Digital Currency (CBDC) Study Act which would require the Federal Reserve to conduct a study on central bank digital currencies among other federal agencies. 

The study would analyze the influence that central bank digital currency has on businesses, consumers and the economy and examine the operational functioning of the system.

"I have long advocated for further research into developing a U.S. dollar digital currency so the United States can maintain our global leadership in financial technology and increase competitiveness of U.S. companies. Recently, @CongressmanBillFoster and I introduced bipartisan legislation to spur development of U.S. digital currency," Hill wrote in a Facebook post on May 12.

In a heavily digital world, central bank authorities recognize the importance of contemporary ideas to keep up with the demand and evolution of digitalized money. Several countries have already taken advantage of Central Bank Digital Currency to utilize fiat currencies. 

“The United States is playing catch-up to the rest of the world when it comes to digital currency, and if we’re going to protect the U.S. dollar’s status as the world’s reserve currency, we need to make development of secure and effective digital currency a priority,” Foster said in a press release. “The COVID-19 pandemic has highlighted how digital currency could provide a faster and more efficient way to get financial assistance to individuals and businesses that are struggling. It’s time for America to get serious about this rapidly emerging technology, and I’m proud to join Congressman Hill to offer a bipartisan, commonsense first step to do just that.”

Hill said the timely bill calls on the Federal Reserve’s Board of Governors to study the introduction of CBDC on consumers and small businesses and U.S. financial sector as a whole.

“Congressman Foster and I have long advocated for further research into, and the development of, a U.S. dollar digital currency to ensure that the United States maintains its leadership in financial technology around the globe. As more countries explore and research CBDC, we must ensure that America does not fall behind,” Hill said in a press release.

Click here to view the bill.