The Anti-CBDC Surveillance State Act (HR 1919) is one of the crypto-related acts of legislation that is expected to be approved by the House of Representatives this week and then soon become law. A CBDC is a central bank digital currency that is issued by a central government.
Unlike Europe, where a digital Euro issued by the European Central Bank is on track to become a reality. China has been testing a digital yuan while even admitting it may be used to influence its population.
The US has taken a more cautious approach due to profound concerns about the possibility of abuse of the information made available with a federally issued digital currency. While governments always claim they will protect an individual’s privacy, past experience indicates otherwise. The lure is just too strong.
Under HR 1919, the US Federal Reserve is prohibited from issuing a CBDC to individuals. Additionally, a CBDC may not be used to influence or implement monetary policy. The legislation does not prohibit the use of a CBCD for institutional usage between the Fed and financial firms.
While the Feds will not be issuing a digital dollar, stablecoin issuers will soon have federal rules that provide regulatory clarity for privately issued payment stablecoins. This is a better approach as a regulated stablecoin has an arms-length relationship with the Feds, while rules will protect consumer and business usage.
The “Bottom Line” according to the House is “The Anti-CBDC Surveillance State Act ensures that United States digital assets policy is in the hands of the American people—not the Administrative State. It protects American values of privacy, individual freedom, and free market innovation by prohibiting a CBDC surveillance tool that could be wielded against the American way of life.”
The House Financial Services Committee has put together a one-payer on the bill, which is available below.