Rep. Keith Self Pushes to Stop Fed from Creating Digital Dollar in Defense Bill

Republican lawmakers are escalating their fight against a potential U.S. central bank digital currency (CBDC), with Rep. Keith Self (R-Texas) introducing an amendment to the National Defense Authorization Act (NDAA) that WOULD block the Federal Reserve from developing or issuing a digital dollar. The move comes after GOP leaders failed to include promised anti-CBDC provisions in the defense bill, sparking fury among conservatives.

The proposed amendment, dubbed the 'Anti-CBDC Surveillance State' measure, would prohibit the Fed from testing or deploying a digital currency while barring it from offering direct financial services to individuals. Critics argue a CBDC would grant the government unprecedented control over personal finances—a concern amplified by the Biden administration's exploratory work on digital currency systems.

House Republican leaders had assured colleagues that CBDC restrictions would feature in the NDAA, but the final text omitted such language. The Rules Committee will now decide whether to allow a floor vote on Self's amendment, setting up a potential clash between CBDC skeptics and proponents of financial innovation.