Summary:
- R.3712, the Digital Dollar Pilot Prevention Act, was introduced by Rep. Alex Mooney (R-WV) and quickly found support amongst moderate Republicans and members of the Freedom Caucus. The bill stops the Federal Reserve from creating the digital dollar, a centralized digital currency that tracks and monitors Americans’ spending.
What are the Dangers of the Digital Dollar?
- The “Digital Dollar” is the first step towards the government creating a social credit system like in Communist China.
- Proponents of the digital dollar wish to create a government controlled virtual currency to drive users away from free-market crypto-currency exchanges.
- The more market share the digital dollar has, the more likely the government can control the personal finances of all Americans.
- Outside of a court order, third parties, like banks and crypto exchanges, are the only entities that can track their customers’ spending habits. Users of the digital dollar will not be afforded this firewall because their data will already be in the hands of the Federal Reserve to do as they see fit.
- Simply put: The digital dollar is dangerous because it undermines free-market principles and gives sway for a tyrannical government to leverage personal spending data and target political opponents.
The Digital Dollar Pilot Prevention Act – Preventing the Digital Dollar from Getting Off the Ground:
- The government creates pilot programs to test-run policies they wish to enact. The Digital Dollar Pilot Prevention Act stops the Federal Reserve from creating a pilot program to test the feasibility of a digital dollar, thus stopping the creation of the digital dollar in its track.
The Latest on the Digital Dollar Pilot Prevention Act:
- The bill was sent in May 2023 to the House Finance Committee where it remains.