Digital Dollar Take Center Stage in Hearing Before US Senate

Published on by Cointele | Published on

In a hearing before the Senate Banking Committee today, June 30, central bank digital currencies took center stage before an audience of Senators looking to upgrade financial infrastructure and expand financial inclusion in the country.

The witnesses and the concernsThe banking committee welcomed Paxos CEO Charles Cascarilla, financial inclusion professor and researcher at Duke Nakita Cuttino, and former CFTC Chair and current champion of the Digital Dollar Project Chris Giancarlo as witnesses.

Committee Chair Mike Crapo cautioned that "The U.S. must have clear rules of the road in place that protect businesses and consumers without stifling innovation," echoing a broad desire to support businesses.

Many republican committee members emphasized competition with China, which seems to be much further along with a digital yuan than the U.S. with a digital dollar.

On the flip side, many democrats of the committee were suspicious of repeated claims that tech would save vulnerable groups.

Nobody on the committee was happy with the current system.

The Banking Committee as opposed to other similar hearingsGiancarlo's testimony today follows a similar hearing before the House Fintech Task Force earlier this month.

This time Giancarlo faced a full committee, while the task force is a subunit of the House Financial Services Committee whose members are especially up-to-speed on tech developments.

As Senator Jon Tester put it diplomatically, "I don't know if anybody on this committee - I'll speak for myself, I need more information."

"There'll probably be certainly some focus on what China's doing, what other countries are doing from some members of the committee. That will also be focus on financial inclusion and unbanked populations from other segments."