Lawmakers in the United States are voicing their concerns about the privacy implications of a central bank digital currency (CBDC) issued by the Federal Reserve. They emphasize the importance of financial privacy for Americans and draw comparisons to China's digital yuan, which can track purchases. The legislators argue that any CBDC implementation must be subject to Congressional approval to safeguard against potential surveillance risks.



As discussions around central bank digital currencies (CBDCs) continue to evolve, several U.S. lawmakers have raised significant concerns regarding the potential privacy risks associated with a CBDC issued by the Federal Reserve. These lawmakers are highlighting the importance of preserving financial privacy for American citizens and drawing comparisons to the digital yuan introduced by China, which has raised concerns due to its tracking capabilities.


Congressman French Hill, who chairs Congress' Digital Assets Subcommittee, took to social media to voice his perspective on the matter. He stated that Americans have a fundamental right to financial privacy and expressed concerns about the prospect of a CBDC that could potentially track individuals' purchases, similar to China's digital yuan. Hill underscored that the authority to create and implement a CBDC should rest with Congress rather than unelected officials, emphasizing that this is a non-partisan issue.


Hill has consistently expressed reservations about the potential issuance of a CBDC by the Federal Reserve. He has shared his understanding of the concerns voiced by Americans about CBDCs potentially leading to intrusive surveillance. Hill's priority lies in ensuring that the federal government cannot move forward with a CBDC without obtaining proper Congressional approval. To address these concerns, he introduced HR 3506, the 21st Century Dollar Act, to establish a strategy for maintaining the U.S. dollar's global reserve currency status, whether or not a CBDC is pursued.


Other lawmakers have echoed Hill's sentiments regarding the privacy implications of CBD. Congressman Patrick McHenry highlighted the requirement for Congressional authorization before the Federal Reserve can proceed with a CBDC. He emphasized the need to thoroughly understand the potential privacy risks, hindrances to private sector innovation, and implications for American consumers.


Rep. Warren Davidson took a more pointed stance, comparing the impact of a CBDC on the concept of sound money to the effects of dictatorship on freedom. He expressed concerns about CBDCs becoming tools for coercion and control, drawing attention to potential surveillance aspects. Davidson stressed the need to prohibit and criminalize any efforts related to CBDC development, testing, and establishment to prevent the erosion of financial freedom.


The concerns raised by these U.S. lawmakers underline the importance of carefully considering the implications of CBDCs, particularly in relation to financial privacy and surveillance risks. As the conversation around CBDCs progresses, it is evident that policymakers are focused on striking a balance between technological innovation and safeguarding fundamental individual rights in the evolving landscape of digital currencies.


(Kevin Helms, Bitcoin News, 2023)