By
Steve Muchoki
June 14th, 2024
The CBDC Anti-Surveillance State Act mandates that any development of a digital US dollar must receive explicit approval from Congress.
On May 23, the United States House of Representatives passed Congressman and Majority Whip Tom Emmer’s flagship legislation, H.R. 5403, the CBDC Anti-Surveillance State Act. The bill, which was passed with a vote of 216 to 192, prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) in the nation.
Emmer claims that without the supervision of Congress, the development of a CBDC could potentially allow the federal government to monitor and control Americans’ spending habits.
“This bill was the first anti-central bank digital currency legislative effort introduced in the United States,” Emmer noted.
“For the past two Congresses, I’ve worked with my colleagues to update, improve, and grow support for it. This bill halts the efforts of this Administrative State under President Biden from issuing a financial surveillance tool that, if not done correctly, will fundamentally alter the lives of every American,” he added.
Notably, the CBDC Anti-Surveillance State Act mandates that any development of a digital US dollar must receive explicit approval from Congress.
In a post on social media platform X (formerly known as Twitter), a member of the Republican Party claimed that the “legislation ensures that the United States’ digital currency policy remains in the hands of the American people so that any development of digital money reflects our values of privacy, individual sovereignty, and free market competitiveness.”
“Whatever is ultimately developed must emulate the core tenets of cash. Simply put: any digital currency issued by the government, again must be open, permissionless, and private,” said Emmer.
Emmer believes that such measures are essential to prevent a CBDC from becoming a tool of oppression. In his speech on the House floor, Emmer cited recent examples of government overreach and financial surveillance.
The Republican cited the Canadian government’s 2022 action of freezing the bank accounts of truckers protesting vaccine mandates. Emmer stressed that similar misuse of financial tools could occur in America if CBDCs are adopted without strict safeguards.
It is important to note that H.R. 5403 has passed the House of Representatives and will now proceed to the Senate for consideration.
Massive Support for the Anti-CBDC Bill
The bill, which boasts 165 cosponsors and has companion legislation in the Senate, has garnered significant support. ALEC Action, a partner of the American Legislative Exchange Council, expressed strong backing for H.R. 5403.
ALEC Action stated:
“H.R. 5403 prevents the United States from joining autocratic nations like China that have embraced CBDCs as effective means of strengthening surveillance on everyday citizens.”
Similarly, the American Bankers Association (ABA) expressed strong opposition to the implementation of CBDC in the United States. Its Executive Vice President of Congressional Relations and Legislative Affairs, Kirsten Sutton, pointed out that the dollar is already digital and questioned how issuing a CBDC would enhance financial inclusion or achieve other commendable goals.