The House Financial Services Committee succeeded in a major development Passed CBDC Anti-Surveillance State Act, which aims to prevent the Federal Reserve from issuing a central bank digital currency (CBDC).
Rep. Tom Emmer, known for his stance on decentralized cryptocurrencies, announced on X (formerly Twitter) that the legislation had been approved by committee and will now go to Congress for a vote.
CBDC anti-surveillance state bill advances in Congress
Emmer emphasized that the bill has broad support, stressing that it has the support of 60 members of Congress.Emmer said of the committee’s decision emphasize The importance of halting the issuance of financial surveillance tools that threaten to disrupt the American way of life.
He distinguished between decentralized cryptocurrencies and CBDC, describing the latter as a programmable form of sovereign currency controlled by a government, with transactions conducted on a digital ledger maintained by the government.
Emmer expressed concern that if a CBDC was not designed to simulate cash, it could allow the federal government to monitor and restrict transactions in the United States.
Similar to China’s approach, where the Chinese Communist Party uses CBDC to track users’ spending habits to create a social credit system, Emmer believes that the U.S. government should not sacrifice the financial privacy rights of U.S. citizens in exchange for a surveillance-oriented central bank digital currency.
The bill proposed by Emmer aims to ensure that any digital currency issued in the United States remains in the hands of the American people and not controlled by the administrative state.
The congressman said it was designed to reflect American ideals by upholding the values of privacy, individual sovereignty and free market competitiveness.
Emerl urges privacy for central bank digital currencies
Emmer stressed that the future global digital economy needs to be aligned with these principles, noting that a central bank digital currency that lacks openness, permissionless access and cash-like privacy will only serve as a surveillance tool similar to that used by the Chinese Communist Party.
as report Proposed by Bitcoinist, the revised version of the bill introduces two significant changes compared to previous versions. First, it prohibits the concept of “intermediary CBDC,” that is, CBDC issued by the Fed but managed by retail banks and other financial institutions rather than directly controlled by the Fed.
Additionally, the updated version removes the requirement that the Fed report to Congress on any CBDC pilot programs or research. Separate bills, such as the Digital Dollar Pilot Prevention Act introduced by Rep. Alex Mooney, would address these concerns.
Congress passed the CBDC Anti-Surveillance State Act, marking an important step in the ongoing discussion surrounding the possible issuance of a central bank digital currency in the United States.
With bipartisan support and a focus on protecting American values and privacy, the bill serves as a platform for further deliberations on the future of digital currencies in the country.
Featured image from iStock, chart from TradingView.com