US CBDC Ban: Lawmakers Demand Permanent Block on Digital Currency

US lawmakers are calling for a permanent ban on a Central Bank Digital Currency (CBDC), warning that temporary measures fail to protect Americans from potential risks. The push comes after a proposed amendment to the Federal Reserve Act would block CBDC issuance only until 2031.

Congressman Michael Cloud, along with 28 other members of Congress, sent a letter to House Speaker Mike Johnson and Senate Majority Leader John Thune, urging that a CBDC must be permanently prohibited. The lawmakers argued that digital currencies issued by the Federal Reserve would give the unelected central bank unprecedented control over Americans’ finances, exposing citizens to unconstitutional financial surveillance.

Civil Liberties at Risk

The letter described a CBDC as “inherently anti-American” and a threat to financial freedom and civil liberties. Lawmakers criticized the current amendment for allowing the Federal Reserve to continue studying digital currencies, saying the stronger language of the Anti-CBDC Surveillance State Act must be restored.

Other legislation, such as the No CBDC Act (S 464) introduced by Senator Mike Lee, aims to permanently block the Federal Reserve or Treasury from issuing a digital currency. However, this bill stalled in Congress. Lawmakers insist action is urgent to prevent expanded federal oversight of finances before it’s too late.

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