U.S. Congress Considers Bill Banning Federal Reserve CBDC Research

The United States Congress is currently considering the Anti-CBDC bill, which seeks to ban the Federal Reserve System from researching or studying Central Bank Digital Currencies. Proponents of the legislation argue that a CBDC would grant the state the ability to surveil all financial transactions, reflecting broader anti-government sentiment and interests from private enterprises promoting stablecoins.

Critics of the bill argue that such a ban would prevent citizens from accessing the safest digital form of money. The debate highlights a conflict over the hierarchy of money; while CBDCs and cash are viewed as the highest rung due to their liquidity and low counterparty risk, stablecoins and bank deposits are positioned lower. Opponents of the bill note that stablecoins and bank deposits already facilitate private surveillance for anti-money laundering and compliance purposes.