Legislation seeks to prohibit Federal Reserve’s CBDC pilot program

U.S. Rep. Alex X. Mooney (R-VA) has joined 14 colleagues to introduce legislation that would address the Federal Reserve and its ability to issue Central Bank Digital Currency (CBDC).

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Bill proponents assert the Digital Dollar Pilot Prevention Act (H.R. 3712) would prohibit the Federal Reserve from establishing, carrying out or approving a program intended to test the practicability of issuing a CBDC.

“Congress cannot give an inch when it comes to CBDCs. CBDCs would threaten the liberties of law-abiding Americans and are being used by authoritarian countries right now to crack down on dissent.” Mooney said. “That’s why closing this pilot program loophole is so important—to prevent the Federal Reserve from bypassing the will of Congress. I am proud to introduce this legislation to do exactly that.”

According to the lawmakers, CBDCs pose major privacy and government surveillance concerns.

“The Federal Reserve should never develop a Central Bank Digital Currency (CBDC),” Club for Growth President David McIntosh said. “Moreover, spending time and taxpayer resources on research or pilot programs would be an end-around on Congressional intent, authorization, or jurisdiction. The Federal Reserve should be focused on fulfilling its formal mandate of taming Bidenflation, not mimicking China.”

FreedomWorks President and CEO Adam Brandon said the Biden administration’s calls for Central Bank Digital Currencies is an authoritarian measure to restrict and monitor Americans’ spending habits.

“FreedomWorks applauds Rep. Mooney’s efforts to introduce legislation that would bar the Federal Reserve from establishing any CBDC pilot programs without an act of Congress,” Brandon said. “We must do everything we can to prohibit unelected bureaucrats from inflicting their inflationary and repressive policies on the American taxpayer.”