The Republican party is pushing ahead with new legislation designed to stop the launch of a Central Bank Digital Currency (CBDC) within the United States.

Rep. French Hill, the Chair of the House Financial Services Committee’s digital assets subcommittee, strongly opposed a CBDC, stating that it lacks support in Congress.

Concerns around the CBDC include its potential impact on traditional banking and the risk of it outcompeting the stablecoin market, a sector comprising digital assets issued by private firms and pegged to fiat currencies. Some Republicans are even more apprehensive, fearing that a CBDC could pave the way for an authoritarian regime similar to that in China.

See Also: Warren Buffett Makes Predictions About Crypto, Housing — Even About His Own Death

Pro-cryptocurrency congressman Rep. Warren Davidson (R-Ohio) likened the creation of a CBDC to the malevolent ring from the Lord of the Rings series, stating, "We ought to cast it into the fire and destroy it.”

Conversely, Democrats are advocating for continued research into the CBDC. Rep. Steve Lynch (D-Mass.) accused the crypto industry of stoking fears about a weaponized CBDC and cautioned against the U.S. lagging behind its international peers.

Several presidential candidates recently voiced their support for the Republican opposition to the CBDC. However, both the Biden administration and the Federal Reserve favor further research into a CBDC, although a final decision on its introduction is yet to be made.

Photo by Mahambah on Shutterstock

Price Action: At the time of writing, Bitcoin (CRYPTO: BTC) was trading at $26,584, up 1.32% in the last 24 hours, according to Benzinga Pro.

Read Next: Operating a fully-booked hotel is beyond stressful, but it's about to become much more efficient thanks to one startup. It amassed $5.5 million in the seed round, 5x'ed its customer base in 9 months, and is looking for investors.