The US House of Representatives passed the CBDC Anti-Surveillance State Act, which seeks to amend the Federal Reserve Act of 1913 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 bill that is now headed for a vote in the Senate was backed by Republicans and saw proponents voice concerns over potential abuses of a CBDC, while Democrats emphasized the need for innovation, maintaining the dollar’s global competitiveness, and critiqued the bill’s drafting.
During the debate, frequent references were made to the digital yuan and the freezing of bank accounts in Canada during a truckers’ protest against COVID-19 vaccination mandates.
Financial Service Committee member Warren Davidson invoked George Orwell’s dystopian novel 1984, the New Testament Book of Revelation, and even the Death Star from Star Wars to underline his concerns. Marjorie Taylor Greene added remarks about the “deep state” and the “Democrat regime.”
Democratic objections centered on the bill’s potential consequences, with Brad Sherman dismissing the legislation as a “word salad” favoring “crypto bros,” and argued no one would be required to use a CBDC.
Financial Services Committee ranking member Maxine Waters contended that the bill could inadvertently ban a wholesale CBDC, which might “risk undermining the primacy of the U.S. dollar” globally.
Waters further argued that the bill could be interpreted to ban Federal Reserve holdings of bank reserves, which are required to administer payment systems. She also mentioned the potential use of zero-knowledge proofs to protect users’ privacy.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/may/24/
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