Law protecting Americans’ financial privacy – H.R. 5403 bill.
The U.S. House of Representatives Introduces Bill Blocking Central Bank Digital Currency
The U.S. House of Representatives has passed Bill H.R. 5403, known as the CBDC Anti-Surveillance State Act, sponsored by Majority Leader Tom Emmer (MN-06). The bill aims to block the creation and issuance of a central bank digital currency (CBDC) without explicit consent from Congress, with the goal of safeguarding Americans’ financial privacy.
Protecting Financial Privacy of U.S. Citizens
The bill seeks to prevent a scenario where unelected officials could develop a CBDC, infringing on citizens’ financial privacy. Its main provisions include prohibiting the Federal Reserve Banks from offering products or services directly to individuals, holding accounts on behalf of individuals, and issuing any form of CBDC without Congress’ consent.
The bill also restricts the use of CBDC for conducting monetary policy, ensuring the preservation of the physical privacy of currency. This decision stems from concerns that CBDC could be used to monitor and control financial transactions, similar to practices in other countries.
Support for the Bill
The Chairman of the Financial Services Committee of the House, Patrick McHenry, has expressed his support for the bill, citing concerns about financial surveillance. McHenry highlighted examples from other countries, such as China’s use of CBDC to monitor and control citizens’ spending habits.
McHenry emphasized the importance of the bill in light of the Biden administration’s efforts on CBDC research and development, stating that they could jeopardize financial privacy. He thanked Emmer and other co-sponsors like French Hill and Alex Mooney for their commitment to promoting the bill.
Broad Support for H.R. 5403
The bill has garnered broad support, reflecting common worries about potential government abuse of digital currencies. Its passage marks a significant stride in safeguarding financial privacy in the digital age.
Emmer stressed that the bill aims to prevent the federal government from following the footsteps of authoritarian regimes that exploit digital currencies for surveillance. The bill will now proceed to the Senate for consideration. If passed, it will significantly curtail the Federal Reserve’s ability to introduce CBDC without legislative oversight, strengthening Congress’s role in key financial decisions.
