The US House of Representatives has passed a Republican-led bill aimed at blocking the issuance of central bank digital currencies (CBDC).
In the vote, 216 MPs voted in favor and 192 MPs voted against, while 213 Republicans supported the approved CBDC Anti-Surveillance State Law. All three Democrats voted in favor of the bill, while 192 Democrats opposed it.
The bill was introduced by House Majority Representative Tom Emmer in September 2023. The bill aims to prevent the FED from issuing CBDC to individuals.
Emmer's main concern regarding CBDCs was the potential for widespread surveillance of financial transactions. He has previously stated that CBDCs are “government-controlled programmable money that, if not designed to mimic cash, could allow the federal government to spy on Americans' transactions and block politically unpopular activities.”
Investment bank TD Cowen has warned that the House of Representatives' anti-CBDC bill could have wider implications. “We think such a ban is negative for the global dominance of US banks and the global role of the US dollar,” the bank said in a statement today.
*This is not investment advice.