A bill that would prevent the Federal Reserve from issuing a central bank digital currency (CBDC) was passed out of the House Financial Services Committee last week.
The Anti-CBDC Surveillance State Act would block the Fed from issuing a CBDC directly to individuals or indirectly through an intermediary or third party. Further, it prevents the Fed from using any form of CBDC as a tool to implement monetary policy.
In addition, the bill would ensure that the Treasury Department cannot direct the Federal Reserve Bank to establish or issue a CBDC. Instead, the issuance of any CBDC would require explicit Congressional authorization.
Unlike Bitcoin and other cryptocurrencies, a CBDC is a digital form of sovereign currency that is issued, monitored, and managed by a central bank.
“So far this Congress, this bill has 114 cosponsors and support from groups ranging from the Independent Community Bankers Association and the American Bankers Association to Club for Growth, Heritage Action, and the Blockchain Association. The Anti-CBDC Surveillance State Act ensures that the United States’ digital currency policy is in the hands of the American people – not the Administrative State – so it reflects our American values of privacy, individual sovereignty, and free market competitiveness,” U.S. Rep. Tom Emmer (R-MN), the bill’s sponsor, said.
The bill now moves to the House floor for consideration.