HR 1919: Anti-CBDC Surveillance State Act

HR 1919 in plain English: This bill would prohibit Federal Reserve banks from offering financial products or services directly to individuals and would ban the creation, testing, or issuance of a central bank digital currency (a digital dollar). The Federal Reserve would also be barred from using a digital dollar to carry out monetary policy.

Stated purpose

The bill aims to prevent the Federal Reserve from creating, testing, or issuing a central bank digital currency (a government-issued digital dollar) and from offering financial accounts or services directly to individual Americans.

Key points

• Bans the Federal Reserve from issuing or creating a central bank digital currency (digital dollar)
• Prohibits the Federal Reserve from offering accounts or financial services directly to individuals
• Bars the Federal Reserve from using a digital currency to implement monetary policy
• Allows for limited exceptions as specified in the bill

Arguments supporters make

• A government digital dollar could let federal authorities monitor every transaction an individual makes, wiping out the financial privacy Americans currently enjoy with cash.
• The Constitution gives Congress, not the Federal Reserve, the power to create money; this bill enforces that boundary and prevents unelected officials from launching a major new monetary tool without a vote of elected representatives.
• Allowing the Fed to offer accounts directly to people could crowd out community banks and credit unions, harming competition and consumer choice in the financial system.

Arguments opponents make

• A U.S. digital dollar could make payments faster, cheaper, and more accessible for people who lack traditional bank accounts, and blocking all research prevents Americans from benefiting while other countries move ahead.
• The bill stops even preliminary study and testing, leaving policymakers with no information to make a future decision — banning research is different from banning a product.
• Existing laws and oversight mechanisms could address privacy concerns without a blanket prohibition; critics argue the bill uses surveillance fears to foreclose a tool that Congress could regulate and limit instead.

Tradeoffs

Blocking a government digital dollar preserves financial privacy and existing private banking relationships, but also eliminates the option to develop a publicly accessible digital payment system that could increase financial inclusion or payment efficiency in the future.

Current status in Congress: Passed House.

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