The House Financial Services Committee approved the CBDC Anti-Surveillance State Act in a pivotal move. This legislation aims to halt the Federal Reserve from launching a central bank digital currency (CBDC). Tom Emmer, a representative recognized for his advocacy of decentralized cryptocurrency, announced the committee’s decision on X (previously known as Twitter). The bill now gears up for a full-fledged congressional vote.
Emmer underscored the extensive support this legislation has attracted, with 60 Congress members already on board. Speaking about the decision, he accentuated the potential risks of introducing a financial surveillance tool that might jeopardize core American values. Emmer clarified the distinction between decentralized cryptocurrencies and CBDCs, delineating the latter as a state-controlled digital currency orchestrated on a government-maintained ledger.
Significantly, Emmer’s apprehensions lie in the possibility of a CBDC becoming a surveillance apparatus. He noted that if a CBDC doesn’t mirror cash’s attributes, it could grant the Federal Government undue oversight over American transactions. Drawing comparisons with China’s CBDC model, which aids in crafting a social credit system by monitoring user spending, Emmer contended against compromising Americans’ financial confidentiality for such a digital currency.
The proposed bill articulates Emmer’s vision. It advocates for a digital currency representing the American populace rather than an entity within bureaucratic clutches. The legislation echoes quintessential American privacy, autonomy, and market freedom values. Emmer further stressed the imperative of aligning any future digital global economy with these fundamental principles.
However, changes have been incorporated into the bill. As per Bitcoinist’s report, the updated version introduces two major modifications. It dismisses the idea of “intermediated CBDCs” – digital currencies issued by the Federal Reserve but managed by retail banks and other financial intermediaries. Additionally, the Federal Reserve must no longer disclose CBDC exploratory programs or research to Congress. Separate legislation, like the one presented by Representative Alex Mooney, will address these facets.
The progression of the CBDC Anti-Surveillance State Act epitomizes a significant juncture in the discourse on the possible launch of a CBDC in the US. With cross-party endorsement and an emphasis on upholding American tenets and privacy, this bill paves the way for profound reflections on the nation’s digital currency trajectory.