Republicans Advance Bill to Block Federal Reserve from Issuing Central Bank Digital Currency to Individuals
Republicans on the House Financial Services Committee have moved forward with a bill that aims to prevent the Federal Reserve from directly issuing a central bank digital currency (CBDC) to individuals. The bill, called the “CBDC Anti-Surveillance State Act” and introduced by Rep. Tom Emmer, would also prohibit the Fed from indirectly issuing a CBDC through an intermediary. Emmer, who has been working on this legislation for three years, expressed his pride in presenting the bill and emphasized that a government-controlled programmable currency could enable surveillance and restrict transactions, which goes against American values.
The Federal Reserve has been exploring the possibility of developing a CBDC, although it was stated earlier this month that the central bank is still far from completing its development. The Fed released a report last year that examined the advantages and disadvantages of a CBDC.
‘Breathless Stupidity’ Criticism
Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!
The bill faced strong opposition from some Democrats on the committee, with Rep. Stephen Lynch calling it an “act of breathless stupidity.” He argued that the U.S. should not be left behind as 130 countries, representing 98% of global GDP, are exploring CBDCs. However, two proposed amendments during the hearing did not receive majority votes. The bill will now move to the full House for consideration, but its future in the Senate is uncertain due to expected pushback from Democrats.
Other bills related to cryptocurrency regulation and stablecoins have also advanced from the committee in recent months.
Hot Take: Privacy Concerns Surrounding CBDCs Supported by Blockchain Association
The Blockchain Association expressed support for Emmer’s bill, highlighting “major privacy concerns” associated with CBDCs. They emphasized the constitutional right to financial privacy and endorsed the CBDC Anti-Surveillance State Act, which aims to prevent the issuance of a CBDC in the United States.
