The U.S. House of Representatives just passed a bill that would prevent the Federal Reserve from launching a central bank digital currency (CBDC) without congressional approval.
Republican Majority Whip Tom Emmer sponsored HR 5403, known as the CBDC Anti-Surveillance State Act, aimed at protecting Americans’ right to privacy.
“My legislation ensures that 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.
This is what the future global digital economy needs. We are proud to have led this effort and thank my colleagues for their support.”
The bill passed along party lines on a 216-192 vote, supported by 213 Republicans.
House of Representatives Democrat Maxine Waters led the charge against the bill, calling it anti-innovation and saying it would hamper Federal Reserve research and authority.
“[H.R. 5403] would stifle that research and keep us from moving forward, even if it means the dollar loses its status as the world’s reserve currency and even if it means US citizens miss out on faster, cheaper and easier payments.”
HR 5403 now heads to the Democratic-controlled Senate, where it will likely face more resistance.
In a report issued last year, the Fed said it “has not made a decision” on whether to launch a digital, government-controlled version of the dollar.
And in March, Fed Chairman Jerome Powell reiterated that position, saying the agency is “nowhere near” recommending or adopting a CBDC.
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Generated image: Midjourney