With lawmakers back in session, one of the most divisive questions in U.S. finance has returned to center stage: should America issue a central bank digital currency (CBDC)?Critics raise alarms over surveillance Opponents argue that a retail CBDC could erode civil liberties. Representative Tom Emmer has warned such a system might give Washington direct oversight of citizens’ spending habits. His Anti-CBDC Surveillance State Act – already passed in the House – seeks to prevent what he calls “programmable money” without cash-like privacy protections. Advocates stress nuance Policy voices counter that the debate often ignores key realities. Sheila Warren of the Project Liberty Institute notes that the Federal Reserve cannot launch a CBDC without congressional approval, and any privacy features would be determined by design choices, not by default. She believes much of the rhetoric reflects politics rather than genuine technological risk. Global momentum grows Other regions are not waiting. China’s e-CNY is already in circulation, while Europe and India are piloting their own versions. The U.S., by contrast, has made little progress. Warren suggests wholesale CBDCs, which settle payments between banks, may hold some potential domestically, but she remains skeptical of a retail digital dollar ever launching. READ MORE: Belarus Weighs Mining Plans While Tightening Crypto Oversight Stablecoins shift the landscape Part of the reason urgency is fading is the booming role of stablecoins. The recently passed GENIUS Act gave dollar-backed tokens a clear regulatory framework, effectively legitimizing their place in the financial system. Warren calls them the “jet fuel” of the digital economy, driving payments and settlement without requiring a government-built alternative. Privacy concerns beyond CBDCs Ironically, while lawmakers warn about future state overreach, data collection by private corporations is already pervasive. From AI firms to automakers selling driver information, Warren argues the real privacy risks are present today — long before any digital dollar enters circulation. Kosta Gushterov Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective. SHARE: 0 SHARES
