Northeast South Dakota News

U.S. Representative Dusty Johnson, a Republican from South Dakota, has voted in favor of the Anti-CBDC Surveillance State Act. This legislation aims to prohibit the implementation of a central bank digital currency (CBDC) and protect Americans' financial privacy.

Johnson expressed his concerns about CBDCs, stating, "A central bank digital currency allows governments to track purchases of its users – this is wholly un-American." He further criticized countries like China for using such currencies to control citizens and emphasized that the United States should not adopt similar practices. Johnson said he was pleased with the House's decision to pass the bill.

CBDCs differ from decentralized digital assets as they are issued by the federal government and operate on a government-managed ledger. There is concern that CBDCs could allow for detailed tracking of transactions and potential suppression of politically unpopular activities.

In March 2022, President Biden had called for research into CBDCs, indicating an interest in developing such a currency despite privacy concerns. In contrast, former President Trump issued an executive order banning federal agencies from pursuing CBDCs. The new act codifies Trump's order, aiming to prevent future administrations from developing this technology.

The Anti-CBDC Surveillance State Act specifically prohibits several actions: it bars the Federal Reserve from issuing a CBDC directly or indirectly to individuals; it prevents using a CBDC for monetary policy implementation; it requires congressional authorization for any issuance; and it seeks to safeguard innovation aligned with American values.