Last month, the US House of Representatives passed a bill banning the Federal Reserve from issuing a central bank digital currency (CBDC), heading warnings from the American Banking Association about “unacceptable risks and costs to the US financial system.” While I don’t dismiss concerns raised by the American Banking Association and others, I argue in favor of a more measured approach that allows exploration and experimentation with guardrails. H.R. 5403 – the CBDC Anti-Surveillance State Act – has been referred to the Senate Committee on Banking, Housing, and Urban Affairs for consideration. My hope is that ... (full story)