The post Lawmakers Clash Over Digital Dollar While Stablecoins Gain Ground appeared on BitcoinEthereumNews.com.

Fintech The return of Congress has reignited one of the most polarizing questions in U.S. crypto policy: should America build a central bank digital currency? Depending on who you ask, the idea of a digital dollar is either an essential step to keep up with China and Europe or a dangerous threat to civil liberties. Fear of Surveillance Skeptics like Rep. Tom Emmer warn that a retail CBDC would give the government a direct line into citizens’ wallets. He has championed the Anti-CBDC Surveillance State Act, which passed the House in July, arguing that programmable money without cash-like privacy would allow federal authorities to track or even restrict everyday transactions. Policy specialists, however, argue that this framing ignores an important fact: CBDCs are not a one-size-fits-all product. Sheila Warren, who leads the Project Liberty Institute, points out that the U.S. Federal Reserve cannot launch a CBDC without congressional approval and that privacy features are design decisions, not inevitabilities. In her words, much of the rhetoric in Washington is “more about politics than genuine policy risk.” Diverging Paths Abroad While the U.S. debate drags on, other powers are moving ahead. China’s e-CNY is already live, while the European Union and India are piloting their own versions. That puts Washington at odds with much of the global policy landscape. Warren adds that wholesale CBDCs, which settle transactions between banks, may have potential in the U.S., but she has never seen a retail digital dollar as realistic. One reason the CBDC conversation feels less urgent is the rapid rise of stablecoins. Congress recently passed the GENIUS Act, giving dollar-backed tokens a regulatory framework. Warren argues this could make CBDCs redundant, calling stablecoins the “jet fuel” of the digital economy as they power payments, trading, and settlement without a government-built alternative. The Real Privacy…

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Filed under: News - @ September 6, 2025 4:28 pm