US House Blocks Federal Reserve’s Plans for Digital Dollar
The US House of Representatives has voted to pass a bill that prevents the Federal Reserve from issuing a digital dollar without explicit approval from Congress. The bill, known as the CBDC Anti-Surveillance State Act, was approved with a vote of 216 to 192. Republicans expressed concerns that a digital dollar could lead to government control over citizens’ finances.
Although the Federal Reserve has not yet presented a formal proposal for a digital dollar, the House vote reflects ongoing concerns among Republicans, including former President Trump, regarding potential government overreach with such a system.
House Majority Whip Tom Emmer, who introduced the legislation, argued that a digital dollar could serve as a surveillance tool for the government, enabling them to track transactions and potentially restrict activities they deem politically undesirable. Trump has also voiced his strong opposition to a CBDC, promising to block its creation if he is re-elected.
The American Bankers Association has urged House leaders to support the bill, emphasizing the need for safeguards against potential government control over the financial system.
In a separate vote, the House passed the Financial Innovation and Technology for the 21st Century Act on Wednesday. This bill focuses on establishing a regulatory framework for the crypto market and grants the US Commodity Futures Trading Commission more authority over digital assets. It also outlines the Securities and Exchange Commission’s approach to the sector.
While the crypto industry celebrates this milestone, challenges remain. The bill will need to pass the Senate, and it may face opposition from critics such as Senator Elizabeth Warren. President Joe Biden has expressed concerns about the lack of consumer protections in the bill, suggesting that further revisions may be necessary before it becomes law.