The potential misuse of the CBDC technology trumped arguments about innovation or even good legal drafting.
The CBDC Anti-Surveillance State Act passed the United States House of Representatives on a largely partisan vote on May 23. The bill, which must still face a vote in the Senate, amends the Federal Reserve Act of 1913 to prohibit Federal Reserve banks “from offering certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes.”
The Republican-backed bill’s debate was sparsely attended. Republican supporters spoke about the potential for the abuse of a central bank digital currency (CBDC), while Democrats concentrated on innovation, the dollar’s international competitiveness and the bill’s poor drafting.
French Hill, the Chairman of the Financial Services Committee Subcommittee on Digital Assets, Financial Technology and Inclusion, said:
