The US House Financial Services Committee Passes Bill to Block CBDC
The US House Financial Services Committee has approved a bill that would prevent the Federal Reserve Bank from issuing a central bank digital currency (CBDC). The bill, called the CBDC Anti-Surveillance State Act, was introduced by Majority Whip Tom Emmer and will now move on to a congressional vote. Emmer claims that the bill already has the support of 60 members of Congress. He argues that a CBDC controlled by the state could be used as a surveillance tool and is incompatible with American values.
Emmer’s bill includes provisions that prevent the Federal Reserve from issuing a CBDC directly to individuals or indirectly through an intermediary. It also prohibits the use of a CBDC for implementing monetary policy.
Fed Not Close to Issuing a CBDC
According to top Federal Reserve official Michael Barr, the Federal Reserve is not close to developing a CBDC. While investigations and research are ongoing, there is still a long way to go before a digital dollar is created. Barr stated that the Fed would only proceed with a CBDC if it had clear support from the executive branch and authorizing legislation from Congress.
Concerns Over Privacy
The Blockchain Association has expressed support for Emmer’s bill, citing concerns over privacy. They believe that CBDCs could enable government tracking of purchases and collection of personal data on citizens, which infringes upon Americans’ right to financial privacy protected by the Constitution.
Congressional Support for Anti-CBDC Bill
US House Financial Services Committee Chair Patrick McHenry has also voiced his support for Emmer’s bill. He aims to ensure that the Federal Reserve does not bypass Congress in issuing a CBDC.
Hot Take: US House Financial Services Committee Passes Bill to Block CBDC
The US House Financial Services Committee has taken a significant step in blocking the issuance of a central bank digital currency (CBDC) by passing the CBDC Anti-Surveillance State Act. The bill, introduced by Majority Whip Tom Emmer, aims to protect Americans’ privacy and prevent the government from using a CBDC as a surveillance tool. With support from 60 members of Congress and the endorsement of the Blockchain Association, this bill highlights concerns over privacy and the need for clear authorization before developing a CBDC. It remains to be seen how this bill will fare in the congressional vote.
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