A proposed bill aims to block a government-controlled digital currency, warning it could grant officials total financial surveillance, erase savings, and force spending—just like China’s digital yuan.
No CBDC Act: The Bill That Could End Government-Controlled Digital Money
U.S. Senator Mike Lee (R-UT) announced on Feb. 6 that he has reintroduced the No CBDC Act, a bill aimed at preventing the Federal Reserve from issuing a central bank digital currency (CBDC). The bill is co-sponsored by Senators Ted Cruz (R-TX) and Rick Scott (R-FL) in the Senate, with Representative Andy Ogles (R-TN) introducing a companion measure in the House.
The legislation follows President Donald Trump’s recent executive order blocking federal agencies from creating a CBDC. Lee stated:
President Donald Trump recently banned federal agencies from creating a CBDC through an executive order; this legislation would enshrine the ban permanently in law.
Supporters say the legislation is needed to protect financial privacy and limit government overreach. The bill bars the Federal Reserve, Treasury Department, and other federal agencies from issuing a central bank digital currency in any form. It also prevents the Federal Reserve from holding a CBDC on its balance sheet or using it for monetary policy.
Lee warned that a government-backed digital currency could be used to monitor and control citizens’ financial activities, citing China’s digital yuan as an example. “The United States doesn’t need to create a central bank digital currency to know it is a bad idea,” he stated. “We’ve seen this play out in China with the digital yuan. In early trials, China canceled its citizens’ money after a set period, forcing Chinese citizens to spend their savings at the compulsion of the government. My bill protects Americans from a similar intrusion by prohibiting the Federal Reserve or any federal government agency from minting or issuing a CBDC, whether through a direct-to-consumer or intermediated model.”
Critics argue that a CBDC would allow the federal government to track every financial transaction, weakening free enterprise and restricting the ability of financial institutions to function as lenders. By prohibiting the Federal Reserve from incorporating a CBDC into its monetary policy or balance sheet, the bill aims to ensure that such a system is never implemented in the United States.
Representative Ogles expressed strong opposition to CBDCs, calling them a tool for government surveillance and control. He stressed:
CBDCs are nothing more than a tool for tyrants to intimidate, control, and surveil the activities of American citizens, and it is my duty as a patriot to stop them.
“I am honored to co-lead this effort with Senator Lee.” The bill has received backing from conservative organizations that advocate for financial privacy. Supporters argue that with a conservative majority in government, now is the time to ensure CBDCs are permanently blocked.