At a June 11 hearing before the Congressional Fintech Working Group, everyone seemed to agree that they could improve financial inclusion by giving people more direct access to FedAccounts, which can be operated using a digital dollar, but the exact appearance of a digital dollar is likely to be highly controversial.
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The unity at yesterday’s hearing was encouraging
Congressman Warren Davidson (R-OH), a member of the Fintech Working Group, as well as a leading advocate of cryptomontages, was pleased with the tone of the audience. He had been to previous hearings for Facebook Libra, and saw it become an indictment of Facebook rather than a conversation about cryptomontages.
„It’s not really partisan in terms of where people stand on this issue,“ Davidson told Cointelegraph, „it was encouraging to have a meeting where there was no outright rejection because it’s a threat to the dollar, because it’s the dollar.
In previous conversations, Democratic members of the Financial Services Committee were especially concerned that crypto currencies were a threat to U.S. sovereignty, referring to the chairman of the full committee, Maxine Waters (D-CA), who wrote a key draft for yesterday’s conversation, Davidson said:
„The fact that a version of this was included in the previous Democratic bill says that for some this is a priority, including the president.
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Privacy remains a concern
Davidson was especially concerned that what everyone is talking about when it comes to a „digital dollar“ is that it doesn’t include some of the key advantages of the existing dollar, including privacy and autonomy: „That’s the strength of cash, you have to have the feature that you’re not really filtering the transactions.
Therefore, Davidson believes that reaching a consensus on what a dollar means will take more time:
„I think there’s still a long way to go before we have a shared vision of what this would look like, for me, the impetus in so many of these issues seems to be to erode privacy even further, which, if we do, we will do in the opposite way, to regain some of the privacy that has been lost, that’s where the beauty of blockchain is.
In the same vein, Kristin Smith of the Bitcoin Trader Association said: „It is important for policy makers to know that the term ‚digital dollar‘ means different things to different people.
Prior to the hearing, witness and former CFTC president J. Christopher Giancarlo told Cointelegraph to look for the range of expertise among the working group:
„There are members who are far removed from thinking about blockchain technology, distributed accounting technology, cryptoactives and a US CBDC, there are others who are more focused on specific privacy and value concerns“.