Senator Sherrod Brown, the chairman of the Senate Committee, has endorsed CBDC & suggested that United States should be the frontrunner in the central bank digital currency (CBDC) race. In a letter to the Chairman of the Federal Reserve Jerome Powell and Lael Brainard, the Fed head of the Boston branch, Brown endorsed the idea for a digital dollar while dismissing Bitcoin and stablecoins.
Senator Sherrod Brown Endorses CBDC
In a letter to Fed Chair, Senator Sherrod Brown urges that the United States cannot be left behind in the CBDC race:
“Some of our international counterparts are moving quickly to determine whether to implement a central bank digital currency. The United States must do the same. We cannot be left behind.”
He even dismissed the idea of stablecoin such as Facebook’s Diem while warning that tech companies of such projects could only exploit people instead of helping them.
He even warned on the world’s largest cryptocurrency Bitcoin saying such currencies would only undermine the U.S. dollar, saying:
“The potential for non-sovereign crypto-assets, like bitcoin, to become more widely used as a payment mechanism, poses significant monetary policy and financial stability risks, including risk to our climate. They are highly volatile and speculative, can be used for illegal activity, and consume incredible amounts of energy, driving up electricity use rates, and putting the resilience of local grids at risk.”
Brown Urges on Establishing a Timeline for CBDC
Senator Sherrod Brown in his letter highlights that the central bank of the United States should only work on token-based digital dollars based on blockchain that would be complementary with the FedAccount version.
Just last year, Brown introduced a bill to the Senate Banking Committee that would create a digital version of the existing U.S. dollar where its accessibility will be given to every U.S. resident through the so-called FedAccounts.
Brown further reiterated that both the U.S. central bank and the Treasury Department should establish a timeline while implementing a CBDC. He did caution on consumer protection, financial access, security, and individual privacy concerns regarding the same.