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As the United States House Financial Services Committee looks to further impede the introduction of a digital dollar, where does this resistance to a CBDC stem from? 2854 Total views 31 Total shares Listen to article 0:00 Follow up Join us on social networksOn Wednesday, Sept. 20, the United States House Financial Services Committee marked up two bills to curb the issuance of a central bank digital currency (CBDC). One of the bills would stop the Federal Reserve from running any test programs on CBDCs without congressional approval, while the other would stop federal banks from using CBDCs for some services and products.

The principal political adversaries to a digital dollar are heavyweights such as Robert F. Kennedy Jr. and Florida governor Ron DeSantis, who have thrown their hats into the ring to become president a year from November.

In July, DeSantis said that CBDCs would never happen under his administration, citing concerns over consumers losing power over their own money. Kennedy, on the other hand, a known proponent of Bitcoin, is rallying against the digital dollar as it will vastly magnify the governments power to suffocate dissent by cutting off access to funds with a keystroke.

No CBDC in Florida https://t.co/p9pwSTmrlN— Ron DeSantis (@GovRonDeSantis) March 20, 2023

In May, Cointelegraph reported that according to its own research, more than 130 countries were at some stage of research into a CBDC, and only eight had rejected the idea outright. These countries are diverse, from France and Switzerland to Haiti and Bhutan. So, the question must be asked: Why would a country like the United States be so opposed to having its own digital currency?

The idea of a CBDC in itself is nothing too taxing. In essence, digital dollars would be based on blockchain technology rather than having traditional dollars moving around between accounts. That would dramatically decrease transfer times, cut fees, and do away with the middlemen the intermediaries along the way who slow things down and take a cut for themselves.

The Federal Deposit Insurance Corporation found that in 2021, there were still 5.9 million unbanked households in the United States, a massive number by any standard.

A CBDC would mean that the Federal Reserve would effectively oversee all the bank transfers in the country, as there would be no alternative. And having everything under one roof means one mistake or failure would affect everyone rather than be limited to one bank, for instance.

Recent:Indian state governments spur blockchain adoption in public administration

But perhaps the biggest argument against a CBDC is that, for cryptocurrency purists, having a central institution overseeing a currency is the very thing crypto was designed to avoid. Why now make a U-turn?

Political motivations play a significant role in the discussion in the United States. In March 2022, President Joseph Biden said his administration would place the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC.

This provided fodder for the Republican party to come out against the plan, citing invasion of privacy and claiming it was another form of government control. DeSantis even came out with an Orwellian prediction of the government stopping its citizens from buying fossil fuels or guns if such legislation were in place.

This is not to say that the U.S. hasnt looked into a CBDC, as it has extensively.

In 2020, the Federal Reserve launched Project Hamilton to study the viability of a CBDC. By 2022, it had developed a system that took elements from the workings of Bitcoin but moved away from its rigid blockchain backbone. The result was a system that can process 1.7 million transactions per second, light years ahead of the Bitcoin blockchain and quicker even than Visa, which can deal with about 65,000 transactions per second.

David Millar, data center coordinator at Santander, told Cointelegraph: The leaps forward they made during Project Hamilton were truly staggering. When we heard of the progress they were making, we believed that our entire infrastructure would need to be completely revamped within the next five years.

Nevertheless, the project completed its initial phase in December 2022 and went no further. Once again, voices of dissent from Congress attacked the project, saying it had been carried out solely with academics and the public sector in mind and the average citizen would not benefit.Millar added: The time and effort that went into Hamilton and the results they produced; its a tragedy that most of it will never see the light of day.

The issue of privacy is one of the most prominent foes of the digital dollar. The main argument of the dissenters is that if there is to be a digital dollar, it should effectively be like the cash dollar is now, with its benefits of anonymity coupled with the power and speed of a cryptocurrency. Those who favor a digital dollar argue that we already have such a thing, but its just not called that yet. Credit card money is digital for all intents and purposes, and are any of us mailing cash to Amazon to pay for things?

The world is moving toward a cashless society, and the U.S. is no exception. In 2022, only 18% of all U.S. payments were made in cash, down from 31% in 2016.

Magazine:AI has killed the industry: EasyTranslate boss on adapting to change

The U.S. is also a country of strange contradictions. While it surges ahead in many areas, such as technology, its banking system remains rooted in the traditional, with check payments still being the norm. Dragging a whole nation away from that is a tall order.

So, what does the future hold for a potential U.S. CBDC? Well, very little. Project Hamilton closed with no indication of a second phase, and according to Darrell Duffie, a professor of finance at Stanfords Graduate School of Business, while work is continuing, it has slowed to a snails pace, and nobody is charging ahead openly.

It seems for the foreseeable future, this will be one part of the cryptosphere where the U.S. is not a pioneer.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.# Federal Reserve # Law # Government # SEC # Adoption # United States # Tokens # CBDC # Regulation

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Politics

Local elections 2024: Labour pulling off strong wins with ‘truly historic’ shock in Tory stronghold – as results show Brexit shift

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Local elections 2024: Labour pulling off strong wins with 'truly historic' shock in Tory stronghold - as results show Brexit shift

Labour has won control of a string of Leave-voting councils as results roll in from the local elections across England and Wales.

The party was also buoyed by victory in the Blackpool South by-election, with a 26.33% swing from the Tories.

Among the key council gains, Labour took Rushmoor in Hampshire, which the Conservatives had run for the last 24 years.

It also seized Redditch in the West Midlands, turning a Conservative majority of five into a Labour majority of 15.

Read more:
Winners and losers
Follow the results as they come in

And Labour has retaken Hartlepool Council – the scene of a major by-election loss back in 2021, which led Sir Keir Starmer to consider quitting as leader – and Thurrock in Essex, from no overall control, saying it was “exactly the kind of place we need to be winning to gain a majority in a general election”.

And the party replaced the Tories as the largest party on Peterborough Council which, while remaining under no overall control, saw the Conservatives lose 13 of the 16 seats they were defending.

Meanwhile, the Conservatives lost control of North East Lincolnshire after Labour won five of the seats up for grabs – with neither party now holding a majority on the council.

All six areas overwhelmingly voted Leave in the 2016 Brexit referendum, with Thurrock supporting it by 72.3%, North East Lincolnshire by 69.9%, Hartlepool by 69.6%, Redditch by 62.3%, Peterborough by 60.9% and Rushmoor by 58.2%.

However, Labour lost control in its traditional heartland of Oldham, which has a large Muslim population, with many blaming the party’s stance on the conflict in Gaza.

And while keeping its grip on Newcastle, it saw a number of seats fall to the Greens.

The Tories also clung on by a single seat in Harlow, a council targeted by Sir Keir on the eve of polling day.

Key results at a glance

Redditch – Labour gain from the Tories

HartlepoolLabour gain from no overall control

RushmoorLabour grabbed from the Conservatives

Thurrock a Labour gain from no overall control

North East Lincolnshire – lost by the Tories to no overall control

Harlow – the Tories managed to just about hang on against a challenge from Labour

Pic Getty
Image:
Pic: Getty

In other important developments:

• Labour held on to Sunderland Council
• It also kept control of South Tyneside and Chorley
• The Tories held on to other councils in Hertfordshire, Hampshire and Essex

More than 2,600 council seats across 107 councils were up for grabs in England, alongside 11 mayoral elections, a parliamentary seat and police and crime commissioners throughout England and Wales – with many of the results still coming in.

But early signs show Labour is winning back seats in areas it lost over the Brexit debate, as well as making gains in traditionally Tory voting councils.

Read more:
Labour gains new MP with Blackpool by-election win

Sky’s election coverage plan – how to follow

Friday: From 10am lead politics presenter Sophy Ridge and chief presenter Mark Austin is joined by political editor Beth Rigby and Sam Coates throughout the day, as well as economics and data editor Ed Conway and Professor Michael Thrasher.

Friday night: From 7pm until 9pm, Sophy Ridge will host a special edition of the Politics Hub, offering a full analysis and breakdown of the local elections.

The weekend: Sophy Ridge will host another special edition of the Politics Hub on Saturday from 7pm until 9pm. And Sunday Morning with Trevor Phillips will take a look back over what’s happened from 8.30am until 10am.

How do I watch?: Freeview 233, Sky 501, Virgin 603, BT 313, YouTube and the Sky News website and app. You can also watch Sky News live here, and on YouTube.

And the Electoral Dysfunction podcast with Beth Rigby, Jess Phillips and Ruth Davidson will go out on Friday, and Politics at Jack and Sam’s will navigate the big question of where the results leave us ahead of a general election on Sunday.

We’ll also have the latest on the politics page of our website.

‘People crying out for change’ – Labour

Tory party chairman Richard Holden told Sky News it had been a “tough night” for the Conservatives, but argued it was coming off a “very high watermark set of elections in 2021” and “typical for a government in midterm”.

But he said: “I do feel sorry for a lot of my Conservative colleagues who have been out campaigning with across the country over the last few weeks and months who haven’t managed to hold their seats.”

However, he argued voters had not suggested they want to see “more change” within the Conservative Party, when pressed over Rishi Sunak’s position as leader and insisted the party “will be ready” whenever the election was called.

Analysis: Not all going Starmer’s way with Reform posing real threat

By Professor Michael Thrasher, Sky News elections analyst

Election results declared overnight have clearly demonstrated that the Conservatives are in serious trouble.

A by-election defeat in Blackpool South at the hands of Labour, the seventh this parliament.

In the local council elections the Conservatives are losing seats in numbers that suggest this could be one of the party’s worst ever performances.

But Conservative council seat losses have not been Labour’s gain with Sir Keir Starmer’s party more or less static in terms of vote share compared with its results from last year’s May elections.

The picture of net seat gains and losses is intriguing.

Labour leads the way but it is having to share the headlines with seat gains made at the Conservatives’ expense by the Liberal Democrats, Greens and a range of local independents.

Close comparisons of change in vote share demonstrated that support for Reform is real and will hurt the Conservatives if played out at the next general election.

Read more from Sky News elections analyst Professor Michael Thrasher here

Labour’s shadow environment secretary Steve Reed told Sky News that while it was “early days”, the results so far were showing positive signs for Labour come the next general election.

“These are not polls,” he said. “These are people getting off their backsides, going out of their homes, into a polling station, putting a cross on a party that they want to govern their local area.

“People are crying out for change. I know that from speaking to people on the doorsteps and tonight, it looks like people around the country are voting for change.”

But while Tory MP James Daly said he “fully accepts” the loss of these councils, he insisted to Sky News his party could “still win in parts of the country where historically Labour have dominated” – including in Teeside, where Conservative Lord Houchen is defending his mayoralty.

Analysis:
Story of the night in charts
Blackpool is a big step to No 10 for Starmer
Tories in real trouble but Reform threat not all good for Labour

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‘A good night for Labour’

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Keep up with all the latest news from the UK and around the world by following Sky News

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Tories better some predictions but Lib Dems ‘buoyed’

The Conservatives bucked predictions in Harlow in Essex where it managed to keep control of the council – although its majority fell from 11 to one, and Labour gained five seats.

The party also held on to Broxbourne Council in Hertfordshire – an authority it has run for its entire 52-year history – and Fareham in Hampshire, though in the latter the Liberal Democrats picked up four seats.

A Lib Dem source said they were “buoyed” by their results overnight, claiming it set them up to take seats off the Tories at the next election.

“This is just a taster of what is to come throughout Friday in the Blue Wall,” they added.

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‘We’re surging, they’re sinking’

Reform UK is performing well, racking up an average vote share of between 14% and 15%, and pushing the Conservatives into third place in some areas, including Sunderland.

However, it isn’t fielding candidates everywhere – instead targeting Leave seats where its predecessors, the Brexit Party and UKIP, performed well – and has yet to win a seat or council for itself.

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US

The protests at US universities are about much more than Gaza and Israel

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The protests at US universities are about much more than Gaza and Israel

On the grass outside the university library, it is as though it never happened. 

The tents have been removed. The pavements have been sprayed. The graffiti removed.

Order and control have been restored. The protest has been silenced. For now at least.

A few streets away, at the university police station, an officer calls the names of the students arrested the night before.

On the steps in front of him, the bedraggled are waiting.

Read more:
Why are university students protesting in the US?
Inside pro-Palestinian protest as police break up UCLA encampment

Pic: Reuters
Image:
Pic: Reuters

Police clash with pro-Palestinian demonstrators on the UCLA campus early on Thursday morning. Pic: AP
Image:
Police clash with pro-Palestinian demonstrators on the UCLA campus early on Thursday morning. Pic: AP

Students, charged and released with a date in court, are here now to collect their belongings. They’re missing bags, belts, shoes, all lost in the chaos of the night before.

More on California

From the very heart of the protest encampment, our cameras had captured the chaos.

Officers moving in. Tear gas and rubber bullets to disperse. Stun grenades to disorientate.

Police  detain a demonstrator, as they clear out the protest encampment in UCLA.
Pic: Reuters
Image:
Police detain a demonstrator, as they clear out the protest encampment in UCLA.
Pic: Reuters

They were scenes which have stirred an already fevered debate about Israel and Gaza, yes, but about much more too. About America, about policing, and about free speech too.

President Biden said yesterday: “Vandalism, trespassing, breaking windows, shutting down campuses, forcing the cancellation of classes and graduations – none of this is a peaceful protest.”

‘Wrong’ say the protesters. Their movement, they say, is the very essence of protest; of civil disobedience which is threaded through US college campus history.

Law enforcement official moves a tent at the protest encampment in support of Palestinians at the University of California Los Angeles (UCLA), as the conflict between Israel and the Palestinian Islamist group Hamas continues, in Los Angeles, California, U.S., May 2, 2024. REUTERS/Aude Guerrucci
Image:
Law enforcement official moves a tent at the protest encampment in support of Palestinians at the University of California Los Angeles (UCLA)

Signs of the days-long protest on campus being gradually cleared.
Image:
Signs of the days-long protest on campus being gradually cleared.

They reject any notion that they are threatening or violent. Yet the deeply divisive history of the Israel-Palestine conflict ensures that the beholder will so often be offended by the actions of the other side.

It was the students perceived antisemitism through their pro-Palestinian slogans which had drawn a group of pro-Israel protesters to the encampment earlier in the week.

The chaos of that night was reflected in a statement by the university’s student radio station which has been covering every twist.

This embrace turned out to be a thread of history
Image:
This embrace turned out to be a thread of history

“Counter protestors used bear mace, professional-grade fireworks and clubs to brutalize hundreds of our peers, UCLA turned a blind eye. Police were not called until hours into the onslaught and stood aside for over an hour as counter-protestors enacted racial, physical and chemical violence,” the statement from the UCLA Radio Managerial team said.

Watching the clear-up after the nighttime police sweep of the protesters I spotted two people embracing. A young man and an older woman.

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Professor recalls violent arrest at protest

It turned out to be a thread of history. One was a student who’d been arrested the night before.

The other was a student from a past time. Diane Salinger had been at New York’s Columbia University in 1968, at protests which now form a key chapter in American history.

Diane Salinger had been at New York’s Columbia University in 1968, at protests which now form a key chapter in American history
Image:
Diane Salinger had been at New York’s Columbia University in 1968, at protests which now form a key chapter in American history

“I’m so proud of these people here. I’m so proud,” she told me.

“You know the civil unrest of the students back in ’68 and it continued for several years, it actually changed the course of the Vietnam War and hopefully this is going to do the same thing.”

But then, back at the police station, a conversation that hints at the wider challenges for America.

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Keep up with all the latest news from the UK and around the world by following Sky News

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‘Tom’ is a protester who wanted to remain anonymous – a graduate who feels politically deserted in his own country. For him, no government is better than any on offer.

'Tom' is a protester who wanted to remain anonymous - a graduate who feels politically deserted in his own country.
Image:
‘Tom’ is a protester who wanted to remain anonymous – a graduate who feels politically deserted in his own country.

“The problem with our system is that we can’t rely on the police, we can’t rely on the military to keep us safe.

“When we need to make our voices heard, we need to make them heard, and the only way to do that without being repressed is by keeping each other safe and I think that last night and the last few months have really exemplified that,” he told me.

These protests are about more than Gaza. They are aligning a spectrum of dissent.

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UK

Local elections 2024: Labour pulling off strong wins with ‘truly historic’ shock in Tory stronghold – as results show Brexit shift

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Local elections 2024: Labour pulling off strong wins with 'truly historic' shock in Tory stronghold - as results show Brexit shift

Labour has won control of a string of Leave-voting councils as results roll in from the local elections across England and Wales.

The party was also buoyed by victory in the Blackpool South by-election, with a 26.33% swing from the Tories.

Among the key council gains, Labour took Rushmoor in Hampshire, which the Conservatives had run for the last 24 years.

It also seized Redditch in the West Midlands, turning a Conservative majority of five into a Labour majority of 15.

Read more:
Winners and losers
Follow the results as they come in

And Labour has retaken Hartlepool Council – the scene of a major by-election loss back in 2021, which led Sir Keir Starmer to consider quitting as leader – and Thurrock in Essex, from no overall control, saying it was “exactly the kind of place we need to be winning to gain a majority in a general election”.

And the party replaced the Tories as the largest party on Peterborough Council which, while remaining under no overall control, saw the Conservatives lose 13 of the 16 seats they were defending.

Meanwhile, the Conservatives lost control of North East Lincolnshire after Labour won five of the seats up for grabs – with neither party now holding a majority on the council.

All six areas overwhelmingly voted Leave in the 2016 Brexit referendum, with Thurrock supporting it by 72.3%, North East Lincolnshire by 69.9%, Hartlepool by 69.6%, Redditch by 62.3%, Peterborough by 60.9% and Rushmoor by 58.2%.

However, Labour lost control in its traditional heartland of Oldham, which has a large Muslim population, with many blaming the party’s stance on the conflict in Gaza.

And while keeping its grip on Newcastle, it saw a number of seats fall to the Greens.

The Tories also clung on by a single seat in Harlow, a council targeted by Sir Keir on the eve of polling day.

Key results at a glance

Redditch – Labour gain from the Tories

HartlepoolLabour gain from no overall control

RushmoorLabour grabbed from the Conservatives

Thurrock a Labour gain from no overall control

North East Lincolnshire – lost by the Tories to no overall control

Harlow – the Tories managed to just about hang on against a challenge from Labour

Pic Getty
Image:
Pic: Getty

In other important developments:

• Labour held on to Sunderland Council
• It also kept control of South Tyneside and Chorley
• The Tories held on to other councils in Hertfordshire, Hampshire and Essex

More than 2,600 council seats across 107 councils were up for grabs in England, alongside 11 mayoral elections, a parliamentary seat and police and crime commissioners throughout England and Wales – with many of the results still coming in.

But early signs show Labour is winning back seats in areas it lost over the Brexit debate, as well as making gains in traditionally Tory voting councils.

Read more:
Labour gains new MP with Blackpool by-election win

Sky’s election coverage plan – how to follow

Friday: From 10am lead politics presenter Sophy Ridge and chief presenter Mark Austin is joined by political editor Beth Rigby and Sam Coates throughout the day, as well as economics and data editor Ed Conway and Professor Michael Thrasher.

Friday night: From 7pm until 9pm, Sophy Ridge will host a special edition of the Politics Hub, offering a full analysis and breakdown of the local elections.

The weekend: Sophy Ridge will host another special edition of the Politics Hub on Saturday from 7pm until 9pm. And Sunday Morning with Trevor Phillips will take a look back over what’s happened from 8.30am until 10am.

How do I watch?: Freeview 233, Sky 501, Virgin 603, BT 313, YouTube and the Sky News website and app. You can also watch Sky News live here, and on YouTube.

And the Electoral Dysfunction podcast with Beth Rigby, Jess Phillips and Ruth Davidson will go out on Friday, and Politics at Jack and Sam’s will navigate the big question of where the results leave us ahead of a general election on Sunday.

We’ll also have the latest on the politics page of our website.

‘People crying out for change’ – Labour

Tory party chairman Richard Holden told Sky News it had been a “tough night” for the Conservatives, but argued it was coming off a “very high watermark set of elections in 2021” and “typical for a government in midterm”.

But he said: “I do feel sorry for a lot of my Conservative colleagues who have been out campaigning with across the country over the last few weeks and months who haven’t managed to hold their seats.”

However, he argued voters had not suggested they want to see “more change” within the Conservative Party, when pressed over Rishi Sunak’s position as leader and insisted the party “will be ready” whenever the election was called.

Analysis: Not all going Starmer’s way with Reform posing real threat

By Professor Michael Thrasher, Sky News elections analyst

Election results declared overnight have clearly demonstrated that the Conservatives are in serious trouble.

A by-election defeat in Blackpool South at the hands of Labour, the seventh this parliament.

In the local council elections the Conservatives are losing seats in numbers that suggest this could be one of the party’s worst ever performances.

But Conservative council seat losses have not been Labour’s gain with Sir Keir Starmer’s party more or less static in terms of vote share compared with its results from last year’s May elections.

The picture of net seat gains and losses is intriguing.

Labour leads the way but it is having to share the headlines with seat gains made at the Conservatives’ expense by the Liberal Democrats, Greens and a range of local independents.

Close comparisons of change in vote share demonstrated that support for Reform is real and will hurt the Conservatives if played out at the next general election.

Read more from Sky News elections analyst Professor Michael Thrasher here

Labour’s shadow environment secretary Steve Reed told Sky News that while it was “early days”, the results so far were showing positive signs for Labour come the next general election.

“These are not polls,” he said. “These are people getting off their backsides, going out of their homes, into a polling station, putting a cross on a party that they want to govern their local area.

“People are crying out for change. I know that from speaking to people on the doorsteps and tonight, it looks like people around the country are voting for change.”

But while Tory MP James Daly said he “fully accepts” the loss of these councils, he insisted to Sky News his party could “still win in parts of the country where historically Labour have dominated” – including in Teeside, where Conservative Lord Houchen is defending his mayoralty.

Analysis:
Story of the night in charts
Blackpool is a big step to No 10 for Starmer
Tories in real trouble but Reform threat not all good for Labour

Please use Chrome browser for a more accessible video player

‘A good night for Labour’

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

Tories better some predictions but Lib Dems ‘buoyed’

The Conservatives bucked predictions in Harlow in Essex where it managed to keep control of the council – although its majority fell from 11 to one, and Labour gained five seats.

The party also held on to Broxbourne Council in Hertfordshire – an authority it has run for its entire 52-year history – and Fareham in Hampshire, though in the latter the Liberal Democrats picked up four seats.

A Lib Dem source said they were “buoyed” by their results overnight, claiming it set them up to take seats off the Tories at the next election.

“This is just a taster of what is to come throughout Friday in the Blue Wall,” they added.

Please use Chrome browser for a more accessible video player

‘We’re surging, they’re sinking’

Reform UK is performing well, racking up an average vote share of between 14% and 15%, and pushing the Conservatives into third place in some areas, including Sunderland.

However, it isn’t fielding candidates everywhere – instead targeting Leave seats where its predecessors, the Brexit Party and UKIP, performed well – and has yet to win a seat or council for itself.

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