The US House of Representatives has successfully passed a bill that aims to prevent the Federal Reserve from introducing a Central Bank Digital Currency (CBDC) without authorization from Congress.
H.R. 5403, also known as the CBDC Anti-Surveillance State Act, was sponsored by Republican Majority Whip Tom Emmer. The primary objective of the bill is to safeguard the privacy rights of Americans.
Emmer stated, “My legislation ensures that the digital currency policy of the United States remains under the control of the American people. It is important that any development of digital money aligns with our values of privacy, individual sovereignty, and competitiveness in the free market. This is what the future global digital economy requires. We are proud to have led this initiative and express our gratitude to my colleagues for their support.”
The bill was approved with a vote of 216 to 192, with 213 Republicans supporting it. House Democrat Maxine Waters spearheaded opposition to the bill, arguing that it stifles innovation and restricts the Federal Reserve’s research and authority.
Waters expressed her concerns, stating, “[H.R. 5403] would impede research and hinder our progress, even if it means that the US dollar loses its status as the world’s reserve currency and that American citizens miss out on faster, cheaper, and simpler payment methods.”
H.R. 5403 will now proceed to the Democrat-controlled Senate, where it is expected to face further resistance.
In a report released last year, the Federal Reserve stated that it has not made any decisions regarding the launch of a government-controlled digital version of the US dollar. Fed Chair Jerome Powell reiterated this position in March, emphasizing that the agency is nowhere close to recommending or adopting a CBDC.
