Yesterday we wrote about flaws in the crypto-focused FIT 21 Act that was passed by Congress. Another Bill is waiting to be heard, the CBDC Anti-Surveillance Act (Anti-CBDC Bill), which aims to block the issuance of a central bank digital currency (CBDC). While its concern is about the privacy of a retail CBDC, the wording is too broad and will have unintended consequences. That includes blocking a wholesale CBDC that potentially could enhance competition.
Update: as expected, the Bill was passed in Congress with a vote of 216 in favor including three Democrats, and 192 against. To become law it would have to be passed in the Senate and avoid a White House veto.
While most current CBDCs don’t target surveillance, it’s hard to dismiss privacy concerns. Even if CBDCs are designed to preserve privacy, a less benevolent government could change the design once (or if) a CBDC gains traction.
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