Congressman Dusty Johnson Votes to Prohibit Central Bank Digital Currency

Johnson Votes to Prohibit Central Bank Digital Currency

Washington, D.C. – Today, U.S. Representative Dusty Johnson (R-S.D.) voted to pass legislation to prohibit a central bank digital currency (CBDC). The CBDC Anti-Surveillance State Act passed the House and will protect the financial privacy of all Americans.

“The Chinese Communist Party uses a central bank digital currency to track the transactions of their citizens, and in Canada, the Trudeau Administration froze bank accounts of individuals involved in trucker protests,” said Johnson. “This type of surveillance and restriction is wholly un-American. I’m glad the CBDC Anti-Surveillance State Act passed the House to protect the financial privacy and liberty of our citizens.”

Unlike decentralized cryptocurrencies, such as Bitcoin, a CBDC is a digital form of sovereign currency that is issued, monitored, and managed by a central bank. In short, a CBDC is government-controlled programmable money that, if designed without the privacy protections of cash, could give the federal government unilateral authority to surveil Americans’ transactions and restrict politically unpopular activity.

In March 2022, the White House issued Executive Order #14067 urging for CBDC research and development. The corresponding report made it clear that the Biden Administration is not only wanting to create a CBDC, but they are willing to trade Americans’ right to financial privacy for a surveillance-style CBDC.

Specifically, the CBDC Anti-Surveillance State Act:

• 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.

The CBDC Anti-Surveillance State Act is led by House Republican Whip Tom Emmer (R-MN). Johnson cosponsored the bill in February 2024. Read full bill text here.

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