U.S. Defense Bill Adds Anti-CBDC Provision, Blocking Digital Dollar Push

A measure opposing the creation of a U.S. central bank digital currency (CBDC) has been inserted into the National Defense Authorization Act (NDAA), a critical defense funding bill expected to pass. The provision, dubbed the Anti-CBDC Surveillance State Act, mirrors legislation previously introduced by House Majority Whip Tom Emmer (R-Minn.). It WOULD bar the Federal Reserve from issuing a CBDC directly to individuals, effectively preventing a digital dollar that circumvents traditional banks.

Republican lawmakers, led by Emmer, argue CBDCs could enable excessive government surveillance and control over financial transactions. "Government-controlled programmable money" poses risks to privacy and freedom, Emmer has warned. While proponents highlight potential benefits like faster payments and financial inclusion, critics contend centralized oversight dangers outweigh advantages.

The MOVE signals growing political resistance to CBDCs in the U.S., even as other nations advance their own digital currency projects. By attaching the measure to must-pass defense legislation, opponents have significantly increased its chances of becoming law.