Johnson Votes to Protect Americans’ Financial Privacy

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

“A central bank digital currency allows governments to track purchases of its users – this is wholly un-American,” said Johnson. “Countries like China utilize a central bank digital currency to punish and reward their citizens – we should not be taking any tips from the Chinese Communist Party’s playbook. I’m glad the House passed the Anti-CBDC Surveillance State Act to protect the financial privacy and freedoms of Americans.”

Background:

Unlike decentralized digital assets, CBDCs are digital forms of sovereign currency issued and controlled by the federal government, with transactions occurring on a government-managed ledger. In short, a CBDC is government-controlled programmable money that, if not designed to mimic cash, could provide the federal government with detailed transaction data on individual users and the ability to program the CBDC to suppress politically unpopular activities.

In March 2022, then-President Biden issued an executive order urging for CBDC research and development. The corresponding report made it clear that the Biden Administration was not only wanting to create a CBDC, but they are willing to trade Americans’ right to financial privacy for a surveillance-style CBDC.

President Trump issued an executive order prohibiting federal agencies from pursuing a CBDC. The Anti-CBDC Surveillance State Act codifies President Trump’s executive order, permanently banning their development, so future administrations cannot weaponize this technology against Americans.

Specifically, the Anti-CBDC Surveillance State Act: 

• Prohibits the Federal Reserve from issuing a CBDC directly to individuals, ensuring the Federal Reserve can’t mobilize itself into a retail bank with the ability to collect personal financial data on Americans.
• Prohibits the Federal Reserve from indirectly issuing a CBDC to individuals through an intermediary or third party.
• Prohibits the Federal Reserve from using a CBDC as a tool to implement monetary policy.
• Requires authorizing legislation from Congress for the issuance of any CBDC.
• Protects innovation that reflects American values.