Lawmakers from both parties say the Federal Reserve needs legislative authority to issue a digital dollar, but the two sides have so far been unable to find a balance between privacy and security that could overcome the partisan divide.
The gap also appears to be widening, potentially stopping a digital currency before it ever gets issued. At least one Republican who three years ago warned the U.S. could fall behind without a Fed-issued digital dollar is now not so sure. Another Republican, Tom Emmer of Minnesota, introduced legislation in January that would prohibit the Fed from issuing a digital dollar to an individual.
Rep. Bill Foster, D-Ill., chair of the House Financial Services Task Force on Artificial Intelligence, said privacy, identification and anonymity will be the thorniest policy questions Congress will have to answer about a digital dollar.
