A rule against a central bank digital currency (CBDC) has been added to an important defense funding bill.
The change is in the latest version of the House’s National Defense Authorization Act (NDAA), according to Bloomberg Law. The new section is called the Anti-CBDC Surveillance State Act, which is based on a bill introduced earlier by House Majority Whip Tom Emmer.
Earlier this summer, the House voted 219-210 in favor of Emmer’s bill, which would stop the Federal Reserve from giving a digital dollar directly to individuals. A CBDC is a digital version of a country’s money, issued and controlled by the central bank. Federal Reserve Chair Jerome Powell has said the Fed would not issue a CBDC without Congress’s approval.
Some Republicans worry a CBDC could let the government monitor people’s financial transactions. Emmer has said CBDCs could give the federal government the power to track Americans’ spending and restrict certain activities. Democrats have criticized the bill, saying it could block important research.
The NDAA funds the Department of Defense each year. The Senate will vote on its version of the bill when it returns on September 2, and the House is expected to consider it early next month, Punchbowl News reported.
