Key Takeaways
- •Texas Congressman Keith Self has proposed an amendment to the National Defense Authorization Act to prevent the Federal Reserve from implementing a central bank digital currency (CBDC).
- •This legislative action aligns with previous executive orders and efforts to restrict the development of a US CBDC.
- •If passed, the amendment would prohibit the Federal Reserve from issuing a digital dollar.
Legislative Push Against US CBDC
Republican Congressman Keith Self, representing Texas, has introduced an amendment to the National Defense Authorization Act (NDAA) with the explicit goal of preventing the Federal Reserve from developing or implementing a central bank digital currency (CBDC).
This legislative move is poised to significantly influence the direction of U.S. monetary policy and could have ripple effects across the cryptocurrency market, particularly concerning the privacy implications of state-controlled digital currencies.
In a notable political development, U.S. Congressman Keith Self has put forth an amendment to the National Defense Authorization Act (NDAA). The primary objective of this amendment is to prohibit the Federal Reserve from initiating any projects related to a U.S. Central Bank Digital Currency (CBDC).
Building upon prior legislative attempts, such as U.S. Congressman Tom Emmer's H.R.1919 Act, Self's proposal specifically targets the Federal Reserve to cease all CBDC-related activities. This action follows a previous executive order from former President Trump that aimed to prevent the development of a digital currency framework.
If this amendment is successfully passed into law, the Federal Reserve's ongoing exploration into U.S. CBDCs would be halted. This would have a direct impact on any potential plans for a digital dollar and would challenge the ability of future administrations to reverse such a decision.
Concerns Over Privacy and Surveillance
The proposed amendment reflects a broader resistance to CBDCs within the House Republican party, highlighting the ongoing debates surrounding financial privacy and potential surveillance concerns associated with a digital dollar. Policymakers involved in this effort emphasize the importance of prohibiting Federal Reserve involvement in CBDCs unless there is explicit legislative authorization.
The amendment seeks to legally solidify the anti-CBDC position, moving beyond executive actions to establish a more enduring statutory resistance. This initiative is consistent with Republican efforts to mitigate the surveillance risks that are often associated with central bank digital currencies.
Previous legislative actions, including the Anti-CBDC Surveillance State Act, demonstrate a consistent pattern of addressing financial privacy issues. This latest amendment underscores a political commitment to safeguarding financial independence from the potential influences of central bank digital currencies.
“This ‘Anti-CBDC Surveillance State’ amendment will provide statutory assurance that the Federal Reserve cannot create a digital dollar that could infringe on Americans' financial privacy.” - Rep. Keith Self (R-TX-3)