In a significant development, the House Financial Services Committee has successfully passed the CBDC Anti-Surveillance State Act, a bill aimed at preventing the Federal Reserve from issuing a central bank digital currency (CBDC).
Representative Tom Emmer, known for his support of decentralized cryptocurrencies, announced on social media that the legislation had received approval from the committee and is now on its way to a congressional vote.
The bill has gained broad support, with 60 members of Congress backing it. Emmer emphasized the importance of halting the creation of a financial surveillance tool that could potentially threaten the privacy of American citizens.
Emmer made a clear distinction between decentralized cryptocurrencies and CBDCs. He described CBDCs as government-controlled digital currencies that operate on a government-maintained digital ledger. He expressed concern that if a CBDC did not prioritize privacy and emulate cash, it could allow the government to monitor and impose restrictions on American transactions.
Drawing parallels with China’s approach, where a CBDC is used to track spending and create a social credit system, Emmer argued that the U.S. government should not compromise the financial privacy of its citizens in exchange for a surveillance-oriented central bank digital currency.
The bill proposed by Emmer aims to ensure that any digital currency issued by the U.S. remains under the control of the American people rather than being controlled by the government. It seeks to uphold values such as privacy, individual sovereignty, and a competitive free market, which are fundamental American ideals.
Emmer stressed the need for a future global digital economy that aligns with these principles. He stated that a central bank digital currency lacking openness, permissionless access, and privacy similar to cash would only serve as a surveillance tool, similar to what the Chinese Communist Party uses.
The revised version of the bill introduces two significant changes. Firstly, it prohibits the concept of “intermediated CBDCs,” which are CBDCs issued by the Federal Reserve but managed by retail banks and other financial institutions instead of being directly controlled by the Fed. Additionally, the updated version removes the requirement for the Federal Reserve to report any CBDC pilot programs or studies to Congress, with separate bills addressing these matters.
The advancement of the CBDC Anti-Surveillance State Act in Congress represents a notable step in the ongoing discussions about the potential issuance of a central bank digital currency in the United States. With bipartisan support and a focus on preserving American values and privacy, the bill serves as a platform for further discussions about the future of digital currency in the country.
