House passes bill banning Federal Reserve from issuing CBDCs
May 23rd, The CBDC Anti-Surveillance Act has passed the U.S. House of Representatives. Mainly in partisan voting.
This bill aims to amend the Federal Reserve Act. “Prohibits the Federal Reserve from offering certain products or services directly to individuals and prohibits the use of central bank digital currencies for monetary policy and other purposes.”
bill now Awaiting a Senate vote.
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During debate on the bill, Republican supporters emphasized the following points: risks of central bank digital currency (CBDC) abuse; On the other hand, the Democratic Party focused. It emphasized innovation, the dollar’s global competitiveness and criticized the drafting quality of the bill.
Representative Brad Sherman criticized this as follows: “Word Salad” Favors “Crypto Brothers” It was emphasized that . CBDC is not mandatory for everyone.
Representative Maxine Waters, ranking member of the Financial Services Committee, argued that the bill: This could also be interpreted as banning wholesale CBDCs, which could jeopardize the global dominance of the US dollar. She also pointed out that the bill could look like this: Prohibits the Federal Reserve from holding bank reserves; This is essential for operating the payment system.
Waters emphasized: We promise zero-knowledge proof technology to protect user personal information, Also in the meantime Stablecoins pegged to the dollar may lose value during financial operations. CBDC will not face such problems.
In contrast, Representative French Hill, Chair of the Financial Services Committee Subcommittee on Digital Assets, Financial Technology and Inclusion, emphasized: Concerns about government excessive repression Proverb:
We live in a world where governments can abuse the tools they have.
Representative Warren Davidson, a member of the Financial Services Committee, criticized the New York Fed’s Project Hamilton. It compares it to China’s digital yuan and calls it a “creepy surveillance tool.” Rep. Alexander Mooney, who introduced an amendment to limit CBDC research, shared the following sentiment: CBDCs should not be accessible “out of the box.”
Financial Services Committee Member Jake Auchincloss As an alternative, the ‘Mint Act’ was proposed, They claimed it would achieve similar goals without the drawbacks of the current bill, but Republicans blocked it..
Overall, the bill highlights the debate over the benefits and risks of CBDCs.
This bill was passed on the day the U.S. Securities and Exchange Commission (SEC) officially approved the spot ether exchange-traded fund (ETF).
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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