US Lawmakers Pass Anti-CBDC Bill, Eliminating Fed Control

• The Anti-CBDC bill sponsored by Rep. Tom Emmer clears the House panel with a 27-22 vote. 
• Aimed at protecting financial privacy, it blocks direct or indirect CBDC issuance by the Fed.
• This legislation is supported by 114 House Republicans and major advocacy groups.

The U.S. House Financial Services Committee voted 27-22 on Wednesday to advance the Anti-CBDC Surveillance State Act (H.R. 1919). The bill, introduced by Rep.Tom Emmer (R-MN), aims to halt the development of central bank digital currency (CBDC) by the Federal Reserve, reflecting deep concerns over financial surveillance and government overreach in the digital age. This stance aligns with President Donald Trump, who signed an executive order that prohibited the use of CBDCs. Initially introduced in January 2022, the bill prohibits the Fed from issuing a CBDC either directly to individuals or indirectly through intermediaries. 

Supporters of the bill argued that a U.S. CBDC could erode financial privacy and give federal authorities the power to track or control citizens’ transactions. Rep. Emmer, a vocal critic of digital surveillance, warned that without proper safeguards, a CBDC could transform the Fed into a retail bank and “weaponize financial data against Americans.” Pointing to the privacy concerns, he said, 

Power-hungry bureaucrats will stop at nothing in their quest to gain control over the very people they’re supposed to be working for.

However, the bill drew criticism from Democratic lawmakers. Rep. Maxine Waters warned that if the development of a CBDC is blocked, it could result in the U.S. missing out on technological innovations in payments and further risk the dollar’s position as the global reserve currency. Despite these concerns, Emmer’s bill garnered support from more than 100 co-sponsors and several advocacy groups, like the Independent Community Bankers Association and the Blockchain Association.

Related: Wyoming To Launch First US State-Backed Stablecoin in July

Globally, CBDCs have gained attention, with countries like China and Korea launching pilot programs and the European Central Bank studying the digital euro. According to the Atlantic Council’s CBDC tracker, around 134 countries and currency unions are exploring the launch of a CBDC, with 66 countries in the advanced stages of exploration. 

On a final note, as the bill advances to the House, the broader debate on the integration of innovation and individual rights continues to linger. However, with ongoing regulatory shifts, these legislative efforts could reshape the country’s approach to digital currency and influence the future of the global financial system.

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