The US House of Representatives passed the Anti CBDC Bill, which protects financial privacy against digital currencies. The House has marked an important legal milestone by passing the CBDC Anti-Surveillance State Act. This decision comes at a time when the public and consumers are becoming wary of their privacy and government intrusion into the financial sector, especially the CBDC proposed by the federal government.
US House passed the Anti CBDC Bill!
cryptokoin.comAs you can see from , many countries are working to issue CBDC. CBDCs are a cryptocurrency issued and regulated by a country’s central bank. However, there are also those who oppose this. The US House of Representatives passed a bill blocking CBDC. Lawmakers voted 216-192, with 213 Republicans voting in favor of the CBDC State Anti-Surveillance Act. Three Democrats voted in favor of the bill, while 192 Democrats opposed it. House Majority Leader Tom Emmer introduced the bill in September 2023. The bill aims to prevent the Federal Reserve from issuing such assets to individuals.
Emmer’s primary motivations stem from concerns about widespread monitoring of financial transactions. The lawmaker had previously stated that CBDCs are “government-controlled programmable money that, if not designed to mimic cash, could give the federal government the ability to spy on Americans’ transactions and block politically unpopular activities.” The bill faced heavy criticism from Democrats on the House Financial Services Committee in September. Maxine Waters, a Democrat on the House Financial Services Committee, called the bill banning CBDCs “anti-innovation.”
Fed’s stance
The Federal Reserve has insisted it is “no closer” to making a recommendation or even adopting a CBDC. Chairman Jerome Powell has said that if the central bank adopts a CBDC, it will do so through the banking system. In his statement in March, Powell underlined the following:
The last thing we would want at the Federal Reserve would be to have individual accounts for all Americans, or any Americans at all. Only banks have accounts at the Fed and we will continue that way.
The Fed is exploring the possibility of issuing a CBDC. In this regard, last year it published a report examining the pros and cons of a CBDC. But central bank officials have poured cold water on the idea in the past. Powell also said the Fed will not issue CBDC without congressional approval.
Now it’s time for the Seneto, but…
The Heritage Foundation, a conservative organization, pressured lawmakers to pass the anti-CBDC bill. In this regard, he called on MPs to support this bill in February. Moreover, he warned that their scores on the Heritage Action Scorecard would be “negatively affected” if they did not support.
Senator Ted Cruz has introduced a bill in the Senate to ban CBDCs. This bill was supported by the Heritage Foundation and the Blockchain Association, among others. However, a bill to block CBDCs is unlikely to make much headway in the Senate, where Democrats hold the majority.
TD Cowen: Anti-CBDC bill will have wider effects!
Investment bank TD Cowen says Parliament’s anti-CBDC bill will have broader implications. In a note published on Thursday, the investment bank made the following assessment:
We think such a ban is negative for the global dominance of US banks and the global role of the US dollar. This is because the ban will apply to wholesale sales as well as consumer use. This may provide the Euro or other digitized currencies with the advantage of being used in global trade, as the digital Euro does not face such a threat, while stable digital dollars may lose value in the event of a redemption transaction.
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