U.S. House Passes Anti-CBDC Bill

The U.S. House of Representatives just passed H.R. 5403, the CBDC Anti-Surveillance State Act, spearheaded by Majority Whip Tom Emmer (R-M.N.). The bill seeks to block the issuance of a central bank digital currency (CBDC) without approval from Congress.

What's the scoop?

• The bill, which 213 Republicans and 3 Democrats voted for, is aimed at blocking the Federal Reserve, i.e. the U.S. central banking system, from issuing a CBDC without authorization from Congress.
• Now set for a vote in the Senate, the legislation aims to ensure any potential U.S. CBDC project aligns with American privacy values, individual sovereignty, and free market competitiveness.
• “We’ve already seen examples of governments weaponizing their financial system against their own citizens. For example, the Chinese Communist Party uses a CBDC to track spending habits of its citizens," Rep. Patrick McHenry (R-N.C.) said on the bill's passing “That type of financial surveillance has no place in the United States."

Bankless take:

It remains to be seen whether this legislation can pass through the Senate or consequently survive a veto by President Biden. However, with 113 countries researching, developing, or circulating a CBDC, the bill shows that America's political leadership is also increasingly thinking about a national digital currency and how to keep it aligned with American values and free from undue government surveillance.