House Passes CBDC Anti-Surveillance State Act (2024)

FAQs

House Passes CBDC Anti-Surveillance State Act? ›

In a vote of 216 - 192, the House of Representatives passed Emmer's bill that would prohibit the Federal Reserve from issuing a surveillance-style central bank digital currency (CBDC) that could give the federal government the ability to monitor and control individual Americans' spending habits.

This Act may be cited as the “CBDC Anti-Surveillance State Act”. SEC. 2. Prohibition on Federal reserve banks relating to certain products or services for individuals and prohibition on directly issuing a central bank digital currency. Section 16 of the Federal Reserve Act (12 U.S.C.

Referred in Senate (06/03/2024) To amend the Federal Reserve Act to prohibit the 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.

Central Bank Digital Currency (CBDC) is a new form of money that exists only in digital form. Instead of printing money, the central bank issues widely accessible digital coins so that digital transactions and transfers become simple. Efforts towards CBDC grow all over the world for many reasons.

This bill limits the ability of the Federal Reserve to (1) provide direct services to individuals, and (2) use a central bank digital currency. A central bank digital currency is a digital currency (e.g., Bitcoin or Ether) issued by a government-backed central bank.

In a vote of 216 - 192, the House of Representatives passed Emmer's bill that would prohibit the Federal Reserve from issuing a surveillance-style central bank digital currency (CBDC) that could give the federal government the ability to monitor and control individual Americans' spending habits.

Like existing forms of money, a CBDC would enable the general public to make digital payments. As a liability of the Federal Reserve, however, a CBDC would be the safest digital asset available to the general public, with no associated credit or liquidity risk.

2. Will a U.S. CBDC replace cash or paper currency? The Federal Reserve is committed to ensuring the continued safety and availability of cash and is considering a CBDC as a means to expand safe payment options, not to reduce or replace them.

Is the US Going to Digital Dollar? As of June 2024, the US Federal Reserve has not decided to transition to a CBDC or supplement its existing monetary system with one. It is researching the effects a CBDC would have on the dollar, the US, and the global economy.

Put simply, a CBDC would most likely be the single largest assault to financial privacy since the creation of the Bank Secrecy Act and the establishment of the third-party doctrine. The threat to freedom that a CBDC could pose is closely related to its threat to privacy.

What is HR 3712? ›

To amend the Federal Reserve Act to require an Act of Congress for certain activities related to the issuance of a central bank digital currency, and for other purposes. IN THE HOUSE OF REPRESENTATIVES.

5403, the CBDC Anti-Surveillance State Act. “This bill is straightforward. It halts unelected bureaucrats from issuing a central bank digital currency, or CBDC, that would be detrimental to Americans' right to financial privacy.

Section 702 of the Foreign Intelligence Surveillance Act is a critical tool for protecting our national security. It enables the U.S. Intelligence Community to collect, analyze, and share foreign intelligence information on individual terrorists, weapons proliferators, hackers, and other foreign intelligence targets.

A UK House of Lords economic affairs committee report concluded that a CBDC poses two main security risks: first, that individual accounts could be compromised through cybersecurity weaknesses; and, second, that a centralised CBDC ledger could be a target for attack from “hostile state and non-state actors”.

The privacy implications of a CBDC will depend to a large extent on how it is designed. The use of blockchain technology to authenticate transactions, for instance, creates a permanent record every time the unit of currency is transferred, making it possible to trace where it was spent – and by whom.

5403, the CBDC Anti-Surveillance State Act, sponsored by Majority Whip Tom Emmer (MN-06). H.R. 5403 halts unelected bureaucrats from issuing a central bank digital currency (CBDC)—which would threaten Americans' right to financial privacy—without explicit authorization from Congress.