NC West Virginia News

On May 24, 2024, the U.S. House of Representatives passed Congressman Alex X. Mooney’s amendment to H.R. 5403, the CBDC Anti-Surveillance State Act, aimed at closing the Federal Reserve’s Central Bank Digital Currency (CBDC) pilot program loophole. The amendment specifically prohibits the Federal Reserve from establishing, carrying out, or approving any program intended to test the practicability of issuing a CBDC. This measure mirrors Congressman Mooney’s previously introduced H.R. 3712, the Digital Dollar Pilot Prevention Act.

Congressman Mooney also expressed support for Congressman Tom Emmer’s H.R. 5403, which similarly prohibits the Federal Reserve from issuing a CBDC.

“Make no mistake: a federal digital dollar can very easily be used to spy on American citizens and become a social credit system,” said Congressman Alex X. Mooney. “If the federal government wants to experiment with a surveillance tool that the overwhelming majority of Americans oppose, that direction must come from a vote in Congress.”

Congressional Republicans have maintained that the Federal Reserve lacks statutory authority to issue a CBDC without Congressional approval despite ambiguity from the Federal Reserve itself. Concerns over privacy and government surveillance are central to this debate.

The Federal Reserve drew attention last year for its CBDC pilot projects and its collaborations with private sector entities to develop potential CBDCs for the United States, activities that extended beyond traditional research parameters.

Currently, China is circulating its own CBDC as part of a pilot program designed to monitor transactions and restrict banking access for government dissenters. Legislation is seen as necessary to prevent similar developments in the United States by ensuring that any issuance of a CBDC by the Federal Reserve requires Congressional authorization.

Watch Congressman Mooney’s full remarks [HERE].