A group of US lawmakers has joined hands to push for a permanent ban on the development of a US Central Bank Digital Currency (CBDC). The coalition expressed concerns that the CBDC deployment will expose Americans to unconstitutional financial surveillance.
Members of the U.S. Congress have combined efforts to push for a permanent ban on CBDC development and deployment in the US as the Senate prepares to pass the 21st Century ROAD to Housing Act (HR 6644).
The coalition jointly presented their concerns in writing through a statement presented by Member of Congress Michael Cloud to the Speaker of the US House of Representatives, Honorable Mike Johnson, and the Majority Leader, Honorable John Thune. The lawmakers challenged the bill’s provision that temporarily prohibits the Federal Reserve Bank from issuing or creating a CBDC.
CBDC provision on the Housing Act prompts rebellion from Congress
The letter comes as a follow-up to a 300-page 21st Century ROAD to Housing Act released by the Senate Committee on Banking, Housing, and Urban Affairs. The measure includes an amendment provision that would bar the Federal Reserve from issuing a CBDC until December 31, 2031. Michael Cloud and 27 other Congressional colleagues insist on a permanent hard ban on the Federal Reserve’s CBDC exploration.
Congress members believe a temporary pause does not offer Americans sufficient protection against government control. In the letter, the lawmakers stated that the Senate “Must amend the bill” to align with the House’s earlier passage. The coalition noted that the House of Representatives has already passed a bill to ban CBDC development on a bipartisan basis and vowed to do everything they can to ensure the bill is dead on arrival.
The letter also highlighted Trump’s commitment to propel the US to the forefront of the crypto industry ahead of China. In the letter, the lawmakers highlighted that the speaker promised to impose a permanent ban on CBDCs and to include the provision in the most recent National Defence Authorization Act, among other legislation. The lawmakers emphasized that the speaker has still not yet kept his word, 8 months later, after the July negotiations.
The congress members believe that CBDCs will expose US citizens to financial surveillance, which they termed unconstitutional. In an X post dated March 7, Representative Ralph Norman argued that CBDCs will allow the US government to track transactions and monitor how US citizens spend their money. The representative described the issuance as an “overreach at its core” and emphasized that the central bank’s issuance of digital currency “would give unelected bureaucrats unprecedented power over Americans’ finances and threaten basic economic freedom.”
As the lawmakers push to ban CBDCs, Financial veteran Ray Dalio said that CBDCs are coming. In an interview with Tucker Carlson, Dalio cautioned that the controlled virtual currency will allow the government to enforce laws or collect taxes, stating that they can “take your money.” Dalio interlinked CBDCs with geopolitical power, which allows a government to control non-citizens. The billionaire emphasized that this is one of the risks associated with granting a state complete control over finances.
Europe heightens CBDC efforts as China’s digital yuan (e-CNY) sets the pace
In Europe, CBDC deployment could continue to progress. The European Central Bank’s top policymaker, Fabio Panetta, and the Governor of the Bank of Italy said there is a chance that commercial bank money will be fully tokenized in the near future. Panetta anticipates that the digital Euro will be ready for release in 2029.
In mid-January, Cryptopolitan reported that a new Chinese crypto platform, mBridge, had recorded transaction volume of over $55.5 billion, according to a report from the Washington-based Atlantic Council. The report noted that the digital yuan (e-CNY) accounted for more than 95% of the total transaction volume, making it the world’s largest live central bank digital currency project. The report noted that central banks in Asian countries such as Saudi Arabia and the United Arab Emirates are on the front lines of developing virtual currency.
Source: https://www.cryptopolitan.com/house-republicans-cbdc-ban-housing-bill/
