Senator James Lankford (R-OK) today introduced the No Digital Dollar Act to prohibit the US Treasury and the Federal Reserve from interfering with Americans using paper currency if a digital currency is adopted and makes certain individuals can maintain privacy over their transactions using cash and coins.
“Oklahomans have expressed to me their concern that the Treasury could phase out paper money and transition to a digital dollar. While some Oklahomans are open to digital currencies, many still prefer hard currency or at least the option of hard currency. There are still questions, cyber concerns, and security risks for digital money,” said Lankford. “There is no reason we can’t continue to have paper and digital money in our nation and allow the American people to decide how to carry and spend their own money. As technology advances, Americans should not have to worry about every transaction in their financial life being tracked or their money being deleted.”
There is currently no federal statute that prohibits the Treasury from only having a digital currency. The bill comes after President Biden signed Executive Order (EO) 14067 on “Ensuring Responsible Development and Digital Assets.” The EO places an urgency on research and development of potential cryptocurrencies and blockchain (CBDC), which is a digital form of a dollar that would share some of the same features as private digital currencies and would enable the general public to make digital payments. Unlike cryptocurrencies like Bitcoin, CBDCs are issued and backed by the government.