House of Representatives halts Fed's CBDC plans with new legislation
Bill aims to protect citizens from potential financial surveillance by the Federal Reserve.
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The House of Representatives voted 216-192 to pass the CBDC Anti-Surveillance State Act, effectively prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC), as reported by the Washington Examiner.
The bill was championed by House Majority Whip Tom Emmer (R-MN) and aims to prevent government overreach and safeguard financial privacy. The legislation restricts the Fed from both direct and indirect distribution of a CBDC to individuals, citing concerns over personal financial data collection.
Moreover, it bars the central bank from leveraging a CBDC to conduct monetary policy.
Emmer has vocally criticized the potential for a CBDC to mirror surveillance tools used by authoritarian regimes, mentioning China’s digital renminbi as an example. He asserts that the bill is crucial for maintaining privacy, individual sovereignty, and the competitive free market.
While some Democrats argue that the legislation could stifle the US’s competitive edge in digital currency innovation, conservative groups like Heritage Action advocate for the bill as a defense against government intrusion into personal finances.
The Federal Reserve has previously explored the concept of a CBDC, including a trial with major banks and a public comment period to gauge interest and concerns.
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