Today, the United States Financial Services Committee passed the first anti-CBDC (Federal Bank Cryptocurrency) bill. The initiative reflects sentiments shared by many in Congress. This legislation, sponsored by Majority Rep. Tom Emmer, opposes the “ever-expanding government surveillance state.”
The US Congress has taken steps to ban these cryptocurrencies!
Before this monumental decision, on September 12, Tom Emmer reintroduced the CBDC Anti-Surveillance Government Act. The goal was to prevent unelected bureaucrats from issuing a CBDC that could jeopardize Americans’ right to financial privacy. CBDCs are different from decentralized cryptocurrencies like Bitcoin. While the latter operates outside the purview of the government, CBDC is a digital sovereign currency.
CBDC, managed and traded on a digital ledger controlled by the relevant government, becomes “programmable money.” This potentially allows that government to monitor and even control Americans’ transactions. Emmer says the Biden Administration’s enthusiasm for CBDC is clear. Indeed, numerous executive orders highlight the urgency of CBDC research and development. But this initiative has the potential to trade Americans’ financial privacy rights for this surveillance-focused cryptocurrency. In this context, Emmer makes the following statement:
The bill ensures that the US’s cryptocurrency policy is in the hands of the American people, not the administrative state. It will thus reflect our American values of privacy, individual sovereignty, and free market competitiveness. This is what the global digital economy of the future needs. If it isn’t open, permissionless, and private like cash, a central bank digital currency is nothing more than a CCP-style surveillance tool that can be weaponized to suppress the American way of life.
Why are CBDCs wanted to be banned?
Meanwhile, Tom Emmer reminds that China is using CBDC to create a social credit system. Based on this, he warns about the potential for governments to use their financial systems as weapons against citizens. Similarly, the Trudeau Administration sought to freeze the bank accounts of people participating in the 2022 trucker protests. This move also reveals the inherent dangers. Emmer states that such strategies are not suitable for America. He emphasizes that American cryptocurrency policy should reflect the values of privacy, individual sovereignty, and free market competitiveness.
Worldwide Adoption of CBDCs. Source: StatistaAs you follow on Kriptokoin.com, this cryptocurrency legislation has attracted significant attention. He received the support of 60 members of Congress, including French Hill, Warren Davidson and Byron Donalds. Various stakeholder groups, from the Independent Community Bankers Association to the Blockchain Association, also lent their support. Regarding the subject, Tom Emmer notes the following:
The first anti-CBDC bill in the United States passed the Financial Services Committee today! A historic step in defending against the ever-expanding government surveillance state.
Bill blocks FED from issuing CBDC
The CBDC Anti-Surveillance Act essentially prevents the Federal Reserve from issuing CBDCs. The move prevents the Federal Reserve from becoming a retail bank with access to personal financial data. Additionally, the bill prohibits the Fed from using CBDC as a mechanism to control the economy.
The fate of this cryptocurrency bill in the House of Representatives remains unclear. The chances of passage in the Senate are more difficult, considering the Democratic majority. It’s possible Republicans may be hesitant to advance a bill they initiated. The equivalent committee is the Senate Banking Committee, which is dominated by Democrats.
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