CBDC initiatives are now facing a major setback right now, as the U.S. House Financial Services Committee has voted 27-22 to advance the Anti-CBDC Surveillance State Act. This Republican-led bill, which is being championed by Rep. Tom Emmer of Minnesota, aims to block the Federal Reserve from issuing a digital dollar amid some growing fears over financial surveillance and crypto regulation. At the time of writing, the bill is now headed to the full House for consideration.

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Congress Slams CBDC Plan Over Surveillance, Fed, Regulation Fears

The committee’s April 3rd decision represents a significant step in preventing government control over digital currencies. Unlike Bitcoin and also other decentralized cryptocurrencies, a CBDC would be monitored and managed by the Federal Reserve.

Congressman Emmer stated during the markup session:

“Our government should never be in the business of creating tools for financial surveillance.”

The Battle Against Financial Control

The CBDC legislation specifically prevents the Federal Reserve from issuing a digital dollar directly to individuals or through intermediaries as well. The bill also blocks using digital currency as a monetary policy tool, addressing fears about federal authority over citizens’ finances and their personal transactions.

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Emmer warned about the risks, pointing to real-world examples:

“Power-hungry bureaucrats will stop at nothing in their quest to gain control over the very people they’re supposed to be working for.”

Growing Support for Privacy Protection

With about 114 House Republicans backing the discussed legislation, opposition to CBDC has also gained some substantial momentum in the last few months. The bill previously passed the House in the 118th Congress with a 216-192 vote, showing some consistent concern over government-controlled digital currencies.

Emmer explained the fundamental difference between CBDCs and cryptocurrencies:

“Unlike decentralized cryptocurrencies, such as Bitcoin, a CBDC is a digital form of sovereign currency that is issued, monitored, and managed by a central bank.”

The push for legislative protection comes after President Trump issued an executive order prohibiting the federal government from creating a CBDC, but supporters argue that formal legislation provides stronger safeguards against future administrations.

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Protecting American Financial Values

The CBDC bill requires explicit Congressional authorization before any digital dollar could be issued, ensuring elected officials maintain control over digital currency policy rather than federal regulators.

Emmer stressed how important this approach is:

“The Anti-CBDC Surveillance State Act ensures that the United States’ digital currency policy is in the hands of the American people – not the Administrative State – so it reflects our American values of privacy, individual sovereignty, and free market competitiveness.”

With the bill right now on its way to the House floor, the debate over this digital dollar implementation continues, with privacy advocates and also some crypto-friendly lawmakers viewing the CBDC as a potential threat to financial freedom and personal privacy rights.

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