A Washington, D.C.-based think tank, the Competitive Enterprise Institute (CEI), is backing an anti-CBDC (Central Bank Digital Currency) bill in the U.S. Congress. The CEI is advocating for legislation that would prevent the Federal Reserve from issuing or overseeing the development of a CBDC. The bill, known as the “CBDC Anti-Surveillance State Act,” is set to be voted on in the U.S. House of Representatives.
Led by House Majority Whip Tom Emmer, the bill has gained support from industry advocates and influential political figures. The CEI has played a role in advising Emmer to strengthen the bill to prevent potential loopholes that could enable the Federal Reserve to issue a CBDC indirectly.
The Federal Reserve has been researching the potential risks and benefits of CBDCs, with a focus on how they could improve the U.S. payments system. However, there is growing skepticism and concern about the implications of CBDCs, including privacy issues and government surveillance.
CEI Supports Legislation to Limit Federal Reserve’s Role in CBDCs
A recent poll by the Cato Institute found that less than 16% of Americans support a government-issued digital currency. Many worry about the potential for CBDCs to enable government monitoring and control over individuals’ financial transactions.
The CEI also expressed support for legislative measures like the Digital Dollar Prevention Act and raised concerns about the SEC’s approach to regulating cryptocurrencies, particularly its classification of some cryptocurrencies as securities. Industry leaders have criticized the SEC’s enforcement-focused approach and its departure from previous interpretations of securities laws.
The debate over CBDCs and cryptocurrency regulation continues to be a prominent issue in the United States and around the world, with various stakeholders expressing differing views on how these digital assets should be treated and regulated.