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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.

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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.

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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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Tech founders call on Sequoia Capital to denounce VC Shaun Maguire’s Mamdani comments

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Tech founders call on Sequoia Capital to denounce VC Shaun Maguire's Mamdani comments

Almost 600 people have signed an open letter to leaders at venture firm Sequoia Capital after one of its partners, Shaun Maguire, posted what the group described as a “deliberate, inflammatory attack” against the Muslim Democratic mayoral candidate in New York City.

Maguire, a vocal supporter of President Donald Trump, posted on X over the weekend that Zohran Mamdani, who won the Democratic primary last month, “comes from a culture that lies about everything” and is out to advance “his Islamist agenda.”

The post had 5.3 million views as of Monday afternoon. Maguire, whose investments include Elon Musk’s SpaceX and X as well as artificial intelligence startup Safe Superintelligence, also published a video on X explaining the remark.

Those signing the letter are asking Sequoia to condemn Maguire’s comments and apologize to Mamdani and Muslim founders. They also want the firm to authorize an independent investigation of Maguire’s behavior in the past two years and post “a zero-tolerance policy on hate speech and religious bigotry.”

They are asking the firm for a public response by July 14, or “we will proceed with broader public disclosure, media outreach and mobilizing our networks to ensure accountability,” the letter says.

Sequoia declined to comment. Maguire didn’t respond to a request for comment, but wrote in a post about the letter on Wednesday that, “You can try everything you want to silence me, but it will just embolden me.”

Among the signees are Mudassir Sheikha, CEO of ride-hailing service Careem, and Amr Awadallah, CEO of AI startup Vectara. Also on the list is Abubakar Abid, who works in machine learning Hugging Face, which is backed by Sequoia, and Ahmed Sabbah, CEO of Telda, a financial technology startup that Sequoia first invested in four years ago.

At least three founders of startups that have gone through startup accelerator program Y Combinator added their names to the letter.

Sequoia as a firm is no stranger to politics. Doug Leone, who led the firm until 2022 and remains a partner, is a longtime Republican donor, who supported Trump in the 2024 election. Following Trump’s victory in November, Leone posted on X, “To all Trump voters:  you no longer have to hide in the shadows…..you’re the majority!!”

By contrast, Leone’s predecessor, Mike Moritz, is a Democratic megadonor, who criticized Trump and, in August, slammed his colleagues in the tech industry for lining up behind the Republican nominee. In a Financial Times opinion piece, Moritz wrote Trump’s tech supporters were “making a big mistake.”

“I doubt whether any of them would want him as part of an investment syndicate that they organised,” wrote Moritz, who stepped down from Sequoia in 2023, over a decade after giving up a management role at the firm. “Why then do they dismiss his recent criminal conviction as nothing more than a politically inspired witch-hunt over a simple book-keeping error?”

Neither Leone nor Moritz returned messages seeking comment.

Roelof Botha, Sequoia’s current lead partner, has taken a more neutral stance. Botha said at an event last July that Sequoia as a partnership doesn’t “take a political point of view,” adding that he’s “not a registered member of either party.” Boelof said he’s “proud of the fact that we’ve enabled many of our partners to express their respected individual views along the way, and given them that freedom.”

Maguire has long been open with his political views. He said on X last year that he had “just donated $300k to President Trump.”

Mamdani, a self-described democratic socialist, has gained the ire of many people in tech and in the business community more broadly since defeating former New York Gov. Andrew Cuomo in the June primary.

— CNBC’s Ari Levy contributed to this report.

WATCH: SpaceX valuation is maybe even conservative, says Sequoia’s Shaun Maguire

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Samsung expects second-quarter profits to more than halve as it struggles to capture AI demand

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Samsung expects second-quarter profits to more than halve as it struggles to capture AI demand

Samsung signage during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Thursday, March 20, 2025.

David Paul Morris | Bloomberg | Getty Images

South Korea’s Samsung Electronics on Tuesday forecast a 56% fall in profits for the second as the company struggles to capture demand from artificial intelligence chip leader Nvidia. 

The memory chip and smartphone maker said in its guidance that operating profit for the quarter ending June was projected to be around 4.6 trillion won, down from 10.44 trillion Korean won year over year.

The figure is a deeper plunge compared to smart estimates from LSEG, which are weighted toward forecasts from analysts who are more consistently accurate.

According to the smart estimates, Samsung was expected to post an operating profit of 6.26 trillion won ($4.57 billion) for the quarter. Meanwhile, Samsung projected its revenue to hit 74 trillion won, falling short of LSEG smart estimates of 75.55 trillion won.

Samsung is a leading player in the global smartphone market and is also one of the world’s largest makers of memory chips, which are utilized in devices such as laptops and servers.

However, the company has been falling behind competitors like SK Hynix and Micron in high-bandwidth memory chips — an advanced type of memory that is being deployed in AI chips.

“The disappointing earnings are due to ongoing operating losses in the foundry business, while the upside in high-margin HBM business remains muted this quarter,” MS Hwang, Research Director at Counterpoint Research, said about the earnings guidance.

SK Hynix, the leader in HBM, has secured a position as Nvidia’s key supplier. While Samsung has reportedly been working to get the latest version of its HBM chips certified by Nvidia, a report from a local outlet suggests these plans have been pushed back to at least September.

The company did not respond to a request for comment on the status of its deals with Nvidia.

Ray Wang, Research Director of Semiconductors, Supply Chain and Emerging Technology at Futurum Group told CNBC that it is clear that Samsung has yet to pass Nvidia’s qualification for its most advanced HBM.

“Given that Nvidia accounts for roughly 70% of global HBM demand, the delay meaningfully caps near-term upside,” Wang said. He noted that while Samsung has secured some HBM supply for AI processors from AMD, this win is unlikely to contribute to second-quarter results due to the timing of production ramps.

Meanwhile, Samsung’s chip foundry business continues to face weak orders and serious competition from Taiwan Semiconductor Manufacturing Company, Wang added.

Reuters reported in September that Samsung had instructed its subsidiaries worldwide to cut 30% of staff in some divisions, citing sources familiar with the matter.

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Drones are sending ‘overwhelming amounts’ of drugs into prisons – and could help inmates escape, report warns

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Drones are sending 'overwhelming amounts' of drugs into prisons - and could help inmates escape, report warns

Sophisticated drones sending “overwhelming amounts” of drugs and weapons into prisons represent a threat to national security, according to an annual inspection report by the prisons watchdog.

HMP chief inspector of prisons Charlie Taylor has warned criminal gangs are targeting jails and making huge profits selling contraband to a “vulnerable and bored” prison population.

The watchdog boss reiterated his concerns about drones making regular deliveries to two Category A jails, HMP Long Lartin and HMP Manchester, which hold “the most dangerous men in the country”, including terrorists.

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Ex-convict: Prison is ‘birthing bigger criminals’

Mr Taylor said “the police and prison service have in effect ceded the airspace” above these two high-security prisons, which he said was compromising the “safety of staff, prisoners, and ultimately that of the public”.

“The possibility now whereby we’re seeing packages of up to 10kg brought in by serious organised crime means that in some prisons there is now a menu of drugs available,” he said. “Anything from steroids to cannabis, to things like spice and cocaine.”

“Drone technology is moving fast… there is a level of risk that’s posed by drones that I think is different from what we’ve seen in the past,” warned the chief inspector – who also said there’s a “theoretical risk” that a prisoner could escape by being carried out of a jail by a drone.

He urged the prison service to “get a grip” of the issue, stating: “We’d like to see the government, security services, coming together, using technology, using intelligence, so that this risk doesn’t materialise.”

The report highlights disrepair at prisons around the country
Image:
The report highlights disrepair at prisons around the country

The report makes clear that physical security – such as netting, windows and CCTV – is “inadequate” in some jails, including Manchester, with “inexperienced staff” being “manipulated”.

Mr Taylor said there are “basic” measures which could help prevent the use of drones, such as mowing the lawn, “so we don’t get packages disguised as things like astro turf”.

Responding to the report, the Prison Advice and Care Trust (PACT) said: “The ready access to drugs is deeply worrying and is undermining efforts to create places of rehabilitation.”

Mr Taylor’s report found that overcrowding continues to be what he described as a “major issue”, with increasing levels of violence against staff and between prisoners, combined with a lack of purposeful activity.

Some 20% of adult men responding to prisoner surveys said they felt unsafe at the time of the inspection, increasing to 30% in the high security estate.

Andrea Coomber, chief executive of the Howard League for Penal Reform, said: “This report is a checklist for all the reasons the government must prioritise reducing prison numbers, urgently.

“Sentencing reform is essential, and sensible steps to reduce the prison population would save lives.”

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May: Male prison capacity running at 99%

The report comes after the government pledged to accept most of the recommendations proposed in the independent review of sentencing policy, with the aim of freeing up around 9,500 spaces.

Those measures won’t come into effect until spring 2026.

Prisons Minister Lord Timpson said Mr Taylor’s findings show “the scale of the crisis” the government “inherited”, with “prisons dangerously full, rife with drugs and violence”.

He said: “After just 500 prison places added in 14 years, we’re building 14,000 extra – with 2,400 already delivered – and reforming sentencing to ensure we never run out of space again.

“We’re also investing £40m to bolster security, alongside stepping up cooperation with police to combat drones and stop the contraband which fuels violence behind bars.”

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