The United States House of Representatives recently passed the CBDC Anti-Surveillance State Act in a predominantly partisan vote, sparking a heated debate on the risks and benefits of central bank digital currencies (CBDCs).
The bill aims to prohibit the Federal Reserve banks from offering certain products or services directly to individuals and to prevent the use of CBDCs for monetary policy. Supporters of the bill, mainly Republicans, raised concerns about potential abuse of CBDCs, while Democrats focused on innovation and the global competitiveness of the dollar.
During the debate, Rep. Brad Sherman criticized the bill as a “word salad” favoring “crypto bros” and emphasized that the use of a CBDC would not be mandatory for anyone. Rep. Maxine Waters expressed concerns that the bill could jeopardize the US dollar’s global dominance and hinder the Federal Reserve’s ability to hold bank reserves.
On the other hand, Rep. French Hill highlighted worries about government overreach, while Rep. Warren Davidson and Rep. Alexander Mooney raised concerns about surveillance and accessibility of CBDCs.
Despite alternative proposals, the bill passed in the House and now awaits a vote in the Senate. The passage of this bill comes at a time when the US Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs), further highlighting the growing importance of digital currencies in the financial landscape.
The bill underscores the ongoing debate surrounding the advantages and risks of CBDCs, with lawmakers and experts weighing in on the potential impact of these digital currencies on the economy and privacy rights.
