Democratic lawmakers are intensifying their push for a U.S. central bank digital currency (CBDC), while sharply attacking cryptocurrency as a threat to financial stability and national security.
In a press briefing on Wednesday, senior Democrats argued that ongoing anti-CBDC legislation is designed to stifle innovation and weaken U.S. oversight. They dismissed cryptocurrencies as tools primarily used for crime, and claimed the industry lacks any valid role in the country’s economic system.
Rep. Maxine Waters called recent legislative proposals like the Anti-Surveillance State Act and the GENIUS Act dangerous, warning they would empower malicious actors and delay digital currency development. Rep. Stephen Lynch went further, stating that cryptocurrencies have fueled ransomware attacks and offer no value beyond enabling illicit finance. He said the crypto sector should be treated as a systemic scam.
The Biden administration remains at odds with Congress on the issue. President Trump, in one of his first executive orders this year, formally blocked the issuance of a federal CBDC. Despite this, Democrats continue to press for research and rollout, citing global competition and the need for sovereign digital payment systems.
Meanwhile, central banks abroad are already experimenting. India is expanding trials for its digital rupee, Australia is preparing wholesale tests, and the UK is focusing on deposit tokenization. Federal Reserve Chair Jerome Powell, however, has made it clear there will be no U.S. CBDC under his leadership.
Public opinion in the U.S. remains skeptical of a digital dollar, with recent surveys showing low support or confusion around the issue. Still, the clash over CBDCs is becoming a central fight in Washington’s broader crypto debate.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/democrats-push-for-digital-dollar-call-crypto-a-national-security-threat/