In a decisive move, the US House of Representatives has enacted a law aimed at prohibiting Central Bank Digital Currencies (CBDCs).
The Republican-led initiative saw 216 lawmakers endorsing the legislation, while 192 stood in opposition. The CBDC Anti-Surveillance State Law garnered unanimous Republican support, with 213 votes in favor. Notably, three Democrats joined the majority, though 192 Democratic members dissented.
US House of Representatives Curtails Central Bank Digital Currencies
The legislation, introduced by House Majority Representative Tom Emmer in September 2023, seeks to preclude the Federal Reserve from distributing CBDCs directly to individuals.
Emmer has articulated concerns about CBDCs, highlighting the risk of extensive financial surveillance. He has previously remarked that CBDCs could become “government-controlled programmable money,” potentially enabling federal oversight of American financial activities and obstructing politically contentious transactions.
Investment bank TD Cowen has cautioned that the House’s anti-CBDC bill might have broader ramifications. “We believe such a prohibition could undermine the global preeminence of US banks and diminish the international stature of the US dollar,” the bank asserted in a recent statement.