US Lawmaker Revives CBDC Bill Following Trump’s Digital Dollar Ban

Minnesota Representative Tom Emmer, the majority whip in the US House of Representatives, has taken a bold step by reintroducing legislation aimed at preventing federal banks from utilizing or issuing central bank digital currencies (CBDCs). In a notice dated March 6, Rep. Emmer announced the revival of the CBDC Anti-Surveillance State Act, which is now up for consideration in the 119th session of Congress.

Background of the CBDC Anti-Surveillance State Act

This proposed legislation is not new; it follows an earlier version that Rep. Emmer first introduced in 2022. The bill had been awaiting consideration in the Senate Banking Committee since May 2024. The current iteration seeks to amend the Federal Reserve Act to explicitly prohibit federal banks from issuing a digital dollar or any digital asset that bears a substantial resemblance under any other name or label. The primary concern driving this legislation is the potential threat to financial privacy.

Trump’s Executive Order on CBDCs

Adding another layer of complexity, US President Donald Trump issued an executive order on January 23, which prohibits “the establishment, issuance, circulation, and use” of a US CBDC. Rep. Emmer stated, “President Trump understands the dangers CBDCs present and has already issued an executive order prohibiting federal agencies from exploring one.” He emphasized the need to codify this executive order into law to ensure that future administrations cannot weaponize this technology against American citizens.

Support and Challenges Ahead

Rep. Emmer has garnered support from approximately 100 Republican lawmakers for the bill. However, it remains uncertain whether House or Senate lawmakers will take concrete steps to advance this legislation, especially in light of Trump’s ongoing efforts to expand his authority through executive orders. The political landscape surrounding CBDCs is fraught with challenges, as the debate continues over the implications of digital currencies on privacy and government control.

Upcoming Discussions at the White House

On March 7, President Trump, along with crypto and AI czar David Sacks and presidential crypto council director Bo Hines, will convene at the White House with various industry leaders. During this meeting, the US president is expected to unveil additional details regarding his proposed US crypto reserve. While the focus may be on the crypto reserve, discussions surrounding CBDCs and other digital asset-related issues are likely to emerge.

Global Trends in CBDC Development

While the US government under Trump appears to be retreating from any potential CBDC initiatives, other nations are forging ahead with their digital currency plans. For instance, Israel is actively working on a digital shekel, which was announced on March 3. Similarly, the European Central Bank is exploring the issuance of a digital euro, indicating a global trend towards the adoption of digital currencies.

As the debate over CBDCs continues, the implications for financial privacy, government oversight, and the future of digital currencies remain critical topics for lawmakers and citizens alike. The reintroduction of the CBDC Anti-Surveillance State Act by Rep. Emmer marks a significant moment in this ongoing discussion, highlighting the tension between innovation and regulation in the digital age. For more details, you can read the original article here.