Protecting Privacy: US House Passes Bill Against Central Bank Digital Currency
The US House of Representatives recently approved a bill designed to prevent the Federal Reserve from introducing a Central Bank Digital Currency (CBDC) without Congressional approval. The bill, known as the CBDC Anti-Surveillance State Act, aims to safeguard Americans’ privacy rights.
- Republican Majority Whip Tom Emmer sponsored H.R. 5403, emphasizing the importance of digital currency policy remaining under American control.
- The bill, supported by 213 Republicans, was passed 216 to 192 along party lines.
- House Democrat Maxine Waters criticized the bill, expressing concerns about hindering the Federal Reserve’s research and authority.
Opposing Views: A Partisan Debate
Views on H.R. 5403 vary among lawmakers, with Republicans supporting it to preserve privacy rights and Democrats arguing against its potential to hinder financial innovation. The bill now moves to the Senate, where further discussions and debates are expected.
- The Federal Reserve, in a report last year, stated that it has not made any decisions regarding the launch of a digital version of the dollar.
- Fed Chair Jerome Powell reiterated in March that there are no immediate plans to recommend or adopt a CBDC.
Hot Take: A Potential Roadblock for CBDC Development
The passing of H.R. 5403 poses a significant challenge to the Federal Reserve’s exploration of a digital currency. The debate surrounding privacy concerns and financial innovation is likely to continue as the bill progresses through the Senate.
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