Ron DeSantis, the governor of Florida, has charged the Fed with enforcing an ESG agenda through the use of a digital currency.
But, the scenario outlined by these contenders has little in common with the central bank’s cautious investigation of digital currency.
Governor Ron DeSantis claims the Fed uses digital currency
The Fed already faces intense scrutiny for how it manages inflation and the banking system, and in the years leading up to 2024, its technical work on payment systems might generate strange discussion.
Republicans have criticized the Fed for focusing on climate change and economic inequality, and the Fed is under fire from both sides of the political spectrum over trading and investment scandals.
The Fed has not made a final judgment on whether to develop a digital currency and would need the White House and Congress to give their unequivocal approval before taking any further action.
But, the Fed has not yet made a final decision regarding whether it will pursue its own digital currency or even if such a plan would be in the best interests of the general public.
For years, Fed officials have stated that in order to proceed, they would want unequivocal backing from both the White House and Congress, most likely in the form of an authorizing law.
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The Fed’s Approach to Digital Currency
Fed Chair Jerome H. Powell frequently states at congressional hearings and in public speeches that it is not important for the United States to be the pioneering nation or even the leader of the pack among nations testing the concept.
According to a database maintained by the Atlantic Council, 11 nations worldwide have introduced digital currencies. Although 32, including the US, are in the development stage, 18 are in the pilot stage.
Instead, the objective would be to choose the best strategy and only advance with enough support from the public and elected authorities.
In March, Powell stated during testimony before the House Financial Services Committee that “we would surely require congressional permission for” a central bank digital currency.
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