H.R.1919 - Anti-CBDC Surveillance State Act (119th Congress)
Summary
H.R. 1919, the "Anti-CBDC Surveillance State Act," aims to amend the Federal Reserve Act to prevent Federal Reserve Banks from offering certain products or services directly to individuals. It also seeks to prohibit the use of a central bank digital currency (CBDC) for monetary policy purposes. The bill expresses the sense of Congress that the Federal Reserve currently lacks the authority to issue a CBDC without explicit congressional authorization.
Expected Effects
The bill, if enacted, would prevent the Federal Reserve from developing or implementing a CBDC. This would preserve the current monetary system, relying on physical currency and digital forms of money managed by private banks. It would also limit the potential for direct government control over individual finances through a CBDC.
Potential Benefits
- Protects individual financial privacy by preventing the creation of a CBDC that could be monitored by the government.
- Preserves the existing two-tiered banking system, preventing the Federal Reserve from competing directly with private banks.
- Limits the potential for government control over monetary policy through a digital currency.
- Upholds the principles of decentralization in the financial system.
- Reinforces the role of Congress in determining the future of the nation's currency.
Most Benefited Areas:
Potential Disadvantages
- May hinder innovation in the financial sector by restricting the development of new digital payment systems.
- Could limit the Federal Reserve's ability to respond to future financial crises that might be better addressed with a CBDC.
- Might put the U.S. at a disadvantage compared to other countries that are exploring or implementing CBDCs.
- Could reduce financial inclusion if a CBDC could have provided access to banking services for underserved populations.
- Misses potential efficiencies and cost savings that a CBDC might offer.
Constitutional Alignment
The bill aligns with the principle of limited government and the separation of powers, as it seeks to prevent the Federal Reserve from acting without explicit congressional authorization. Article 1, Section 8 of the Constitution grants Congress the power to coin money and regulate its value. The bill reinforces this power by asserting that Congress must authorize the creation of a CBDC. The bill also implicitly touches upon the Fourth Amendment regarding privacy, as it aims to prevent potential government surveillance through a CBDC.
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).