Anti-CBDC Surveillance State Act
Summary
The "Anti-CBDC Surveillance State Act" aims to amend the Federal Reserve Act to prevent the Federal Reserve Banks from offering financial products or services directly to individuals. It also prohibits the use of a central bank digital currency (CBDC) for monetary policy purposes. The bill restricts the Federal Reserve from testing, studying, developing, creating, or implementing a CBDC.
Expected Effects
If enacted, this act would prevent the Federal Reserve from issuing a digital currency directly to individuals or using it for monetary policy. It would also limit the Federal Reserve's ability to offer financial products or services directly to individuals. The act explicitly allows for dollar-denominated currencies that are open, permissionless, private, and preserve the privacy protections of physical currency.
Potential Benefits
- Protects individual financial privacy by preventing the creation of a CBDC that could be monitored by the government.
- Prevents the Federal Reserve from directly competing with private financial institutions.
- Preserves the existing financial system by limiting the Federal Reserve's role in offering financial services to individuals.
- Reinforces the role of Congress in determining the monetary policy of the United States.
- May encourage innovation in the private sector for digital payment solutions.
Most Benefited Areas:
Potential Disadvantages
- May limit the Federal Reserve's ability to adapt to the evolving digital financial landscape.
- Could hinder the development of more efficient payment systems.
- May reduce the competitiveness of the U.S. financial system compared to other countries that are exploring CBDCs.
- Could limit the Federal Reserve's ability to implement monetary policy effectively in the future.
- May stifle innovation in the financial sector by restricting the Federal Reserve's involvement.
Constitutional Alignment
The bill aligns with Article I, Section 8 of the U.S. Constitution, which grants Congress the power to coin money and regulate its value. By restricting the Federal Reserve's ability to issue a digital currency, the bill reinforces Congress's authority over monetary policy. The Tenth Amendment also supports this bill, as it reserves powers not delegated to the federal government to the states or the people, implying that the creation of a new form of currency requires explicit congressional authorization.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).