The House Financial Services Committee Successfully Passes State CBDC Anti-Surveillance Law.
In a significant development, the House Financial Services Committee successfully passed the State CBDC Anti-Surveillance Act, a bill to prevent the Federal Reserve from issuing a central bank digital currency (CBDC). Representative Tom Emmer, known for his stance in favor of decentralized cryptocurrency, announced on X (formerly Twitter) that the legislation had received committee approval and is now ready to proceed to a vote in Congress.
The State Anti-Surveillance Law of CBDC advances in Congress
Emmer highlighted the broad support the bill has garnered and emphasized that it already has the support of 60 members of Congress. Speaking about the committee’s decision, Emmer highlighted the importance of stopping the issuance of a financial surveillance tool that could undermine the American way of life.
Emmer stressed the dangers of state control over the currency and its incompatibility with American values:
“American values. American values. This is what the future global digital economy needs. If it is not open, with no permission, and private – just like cash – a central bank digital currency is nothing more than a CCP [Chinese Communist Party]-style surveillance tool that can be used as a weapon to oppress the American way of life.”
He distinguished decentralized cryptocurrencies and CBDCs, describing the latter as a programmable, government-controlled form of sovereign currency that transacts on a digital ledger maintained by the government. Emmer expressed concern that if a CBDC were not designed to emulate cash, which could allow the Federal Government to monitor and impose restrictions on US transactions.
Drawing parallels with China’s approach, where the Communist Party uses a CBDC to track users’ spending habits to create a social credit system, Emmer argued that the US government should not sacrifice citizens’ right Americans to financial privacy in exchange for a surveillance-oriented central bank. digital currency.
Emmer’s proposed bill seeks to ensure that any digital currency issued by the United States remains in the hands of the American people rather than controlled by the administrative state. Its goal is to defend the values of privacy, individual sovereignty and free market competitiveness, reflecting American ideals, according to the congressman.
Emmer Urges Privacy in Central Bank Digital Currencies
Emmer emphasized the need for a future global digital economy that aligns with these principles, stating that a central bank digital currency that lacks openness, permissionless access and privacy similar to cash would simply serve as a surveillance tool similar to those employed by the Chinese Communist Party.
As will be recalled, the revised version of the bill introduces two significant changes with respect to its previous version. First, it prohibits the concept of “intermediated CBDCs,” which refers to CBDCs issued by the Federal Reserve but managed by retail banks and other financial institutions rather than directly controlled by the Federal Reserve.
Additionally, the updated version eliminates the requirement that the Federal Reserve report to Congress on any CBDC pilot programs or studies. Separate bills, such as the Digital Dollar Pilot Prevention Act introduced by Rep. Alex Mooney, will address these issues.
The advancement of the CBDC State Anti-Surveillance Act in Congress represents a notable step in ongoing discussions about the possible issuance of a central bank digital currency in the United States. With bipartisan support and a focus on preserving American values and privacy, the bill serves as a platform for future deliberations on the future of digital currency in the US.
By Audy Castaneda