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Womack Cosponsored Bill Protecting Americans’ Financial Privacy Passes House

Washington, DC—May 23, 2024…Today, H.R. 5403, the CBDC Anti-Surveillance State Act, passed the U.S. House of Representatives. Congressman Steve Womack (AR-3) is a cosponsor of the measure, which halts unelected bureaucrats from issuing a central bank digital currency (CBDC) that dismantles Americans’ right to financial privacy.

Congressman Womack said, “A surveillance-style central bank digital currency is a Chinese Communist Party tool waiting to be weaponized against Americans and American businesses. This bill would prohibit unelected bureaucrats at the Federal Reserve from issuing CBDCs, protecting our free-market economy and ensuring Americans’ hard-earned money can’t be used against them. It has my strong support, and I’m pleased to see it pass the House today.”

Background:

A CBDC can be government-controlled, programmable money that could give the federal government not only significant transaction-level data on individuals, but also the ability to program the CBDC to suppress politically unpopular activity.

The Chinese Communist Party uses a CBDC to track spending habits of its citizens. This data is being used to create a social credit system that rewards or punishes people based on their behavior.

In March of this year, the White House issued Executive Order #14067 urging CBDC research and development. The corresponding report responding to that Executive Order made it clear that the Biden Administration is not only interested in creating a CBDC, but they are willing to trade Americans’ right to financial privacy for a surveillance-style CBDC.

Bill breakdown:

  • Prohibits the Federal Reserve from issuing a CBDC directly to anyone, ensuring the Fed can’t mobilize itself into a retail bank.
  • Prohibits the Federal Reserve from issuing a CBDC indirectly to individuals through financial institutions or other third parties.
  • Prohibits the Federal Reserve from using a CBDC as a tool to implement monetary policy and control the economy.
  • Requires authorizing legislation from Congress for the issuance of any CBDC.
  • Protects innovation that reflects American values.