The US House Financial Services Committee has taken a significant step towards addressing concerns surrounding central bank digital currencies (CBDCs) by advancing the CBDC Anti-Surveillance State Act. This bill aims to prevent federal banks from using or issuing CBDCs and has just moved closer to a vote in the House of Representatives.
In a recent session held on April 2, lawmakers voted 27-22 in favor of the legislation. The bill was part of a broader markup hearing where the committee discussed various potential amendments. In addition to the anti-CBDC bill, discussions included a bill regulating payment stablecoins, poised for a full House vote.
Representative Tom Emmer of Minnesota, who sponsors the anti-CBDC legislation, highlighted the growing support for the bill, referencing its previous passage in the House during the last Congress, where it garnered a 216-192 vote. Emmer noted that the current Congress has seen 114 cosponsors back the bill, with endorsements from diverse organizations, including the Independent Community Bankers Association and the American Bankers Association.
Many Republican lawmakers have directed their focus towards federal institutions such as the Federal Reserve and the Treasury Department, advocating against the exploration of CBDC development. A key argument among these critics is the potential threat to financial privacy that CBDCs could pose.
Reintroduced by Representative Emmer in March, this bill is also seen as an effort to solidify an executive order signed by former President Donald Trump. This order, enacted on January 23, prohibited “the establishment, issuance, circulation, and use” of CBDCs in the United States, underscoring the administration’s hesitance towards such digital currencies.
As the debate around CBDCs continues, the implications of this legislative movement could set crucial precedents for the future of digital finance and the preservation of financial privacy. Stay tuned for further updates on this developing story.
