During the recent debate at the US House Financial Services Committee on September 20 regarding the CBDC Anti-Surveillance State Bill, discussions ventured beyond the purely financial and technical realms. References to Star Wars, anarchists, and crypto enthusiasts peppered the conversation, yet beneath the rhetoric lay conversations on the significance of research related to the US Central Bank Digital Currency (CBDC), the privacy rights of US citizens, and the government's role in daily life.
Congressman Tom Emmer introduced the bill, characterizing it as "simple." He framed it as a countermeasure against efforts by the administrative state under President Biden to introduce financial surveillance tools that he argued could undermine American liberties. He emphasized that, unless designed to mimic cash, such tools could potentially grant the federal government the capability to monitor and restrict transactions by Americans. Emmer cited China's digital yuan and government social credit system, along with Canada's freezing of bank accounts during the 2022 truck driver protests, as reasons for his concerns . He mentioned the bill's support from 60 senators and various organizations.
Ranking Member Maxine Waters humorously renamed the bill the CBDC Anti-Innovation Act and contended that it could jeopardize the dollar's status as the world's primary reserve currency. She argued that the repercussions of introducing a CBDC on the global financial landscape were still unknown. Waters criticized Republican assertions about a non-existent CBDC and cautioned that the bill might empower China to set global standards for central bank digital currencies.
The bill faced scrutiny for its language inconsistencies and questions arose regarding the scope of research the bill would allow for CBDCs. Brad Sherman compared cryptocurrencies unfavorably to CBDCs and emphasized that CBDC ownership was not mandatory. Mike Flood raised concerns about the power a CBDC could grant governments, urging committee members to imagine their least favorite politician with that authority.
Ultimately, the committee approved the bill, which bars the issuance of a CBDC without an act of Congress, a stance the Federal Reserve has maintained from the outset. Both parties acknowledged a general lack of financial privacy in the country. An amendment proposed by Waters and Lynch, aimed at authorizing the Fed to study China's digital yuan for insights into evading US sanctions, was initially suggested but later rejected. The committee reconvened and passed the bill, sending it to the full House with a vote of 27-20.
