Anti-Cbdc Surveillance State Act

Floor Speech

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Mr. LYNCH. Mr. Speaker, I thank the gentlewoman for her confidence and for yielding time.

Mr. Speaker, I rise in strong opposition to H.R. 1919, the so-called Anti-CBDC Surveillance State Act. At the expense of U.S. global economic leadership, this misguided legislation would prevent the Federal Reserve from issuing a central bank digital currency, also known as a CBDC.

Unfortunately, the facts surrounding the development of CBDC have been obscured by disinformation, conspiracy theories, and extreme political ideology. Republicans and the crypto industry have made unfounded claims that a CBDC will be used as a surveillance tool by the Federal Government.

Let's be clear about what a CBDC is. It is a publicly issued digital dollar that would be regulated by the Federal Reserve, an independent Federal Reserve, that would have the full faith and backing of the U.S. Government. A CBDC could serve as an alternative to existing forms of payments, and it will have benefits, including instant payment settlement, providing a medium for cross-border transactions, and fostering greater financial inclusion. Additionally, Congress could require that the architecture of a central bank digital currency not have surveillance capability.

More than 130 countries are or have been studying or have launched their own government-backed digital currencies, including every major world power. Meanwhile, the U.S. remains far behind amid increasing and blatant misinformation about the features of digital currency.

Let's talk about the EU. It is widely acknowledged that the EU has one of the most stringent data protection regimes and protection laws on the planet. They have strict data protections, number one, on the GDPR, so EU citizens have access to control of their personal data. They have the right to be forgotten, which would prevent data surveillance and surveillance of citizens, and they have strict penalties for companies that violate their personal data rights.

The United States could have the same in a U.S. digital currency. There is a widening gap between the U.S. and its G7 peers, all of whom have far more advanced CBDC projects than the U.S.

I will go back to the EU. The EU is in the final stages of a pilot retail CBDC program already. They are so far ahead of us. They are going to capture the future if we adopt this bill.

The U.S. Government has always led the way in harnessing technology to promote innovation. DARPA and NASA space programs are clear examples of what happens when the U.S. invests in research and development.

While concerns about data privacy could be real, we have the ability to protect that data in any architecture that we adopt. It is counterintuitive that my colleagues would be raising concerns about data privacy while thousands of private companies are scooping up data every single day.

Mr. Speaker, vote ``no'' on this bill.

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