US House of Representatives includes CBDC ban provision in defense spending bill

The US House of Representatives has reportedly added a provision to the defense spending bill that prohibits the development of a central bank digital currency (CBDC). This move is being seen as an 'exceptional step' by the US, as the introduction of CBDCs accelerates worldwide.

According to Decrypt, a crypto-specialized media outlet, on the 22nd (local time), Republican lawmakers added language to the 1,300-page defense spending bill (H.R. 3838), prohibiting the Federal Reserve System (Fed) from developing, testing, or operating a CBDC. However, an 'open, dollar-denominated digital currency that guarantees the same level of privacy as US coins or cash' was granted an exception.

Tom Emmer, Republican House Majority Whip, emphasized, "By including the 'anti-CBDC surveillance state act' in the National Defense Authorization Act (NDAA), we must ensure that bureaucrats do not trade away Americans' financial privacy under the pretense of Chinese-style surveillance methods."

Conversely, CBDCs are rapidly spreading globally. The outlet explained, "Currently, 137 countries are researching CBDCs, of which 72 have already entered the development stage. The US is cited as the only major country that has halted its CBDC efforts."