Today Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, took to the House Floor to blast H.R. 1919, the Republicans’ so-called “Anti-CBDC Surveillance State Act,” a bill that would immediately halt and prohibit the United States from exploring the potential benefits of a central bank digital currency, or CBDC.

“Over the hours, we will hear arguments from the other side of the aisle that the United States must prioritize innovation.

The Republican crypto bills we will consider will create giant loopholes in our federal financial laws that put consumers and investors at risk, in the name of innovation. These bills would increase the chance of another costly financial crisis, like the one in 2008 that led to trillions of dollars of wealth being wiped out, in the name of innovation.

So, it comes as a surprise to me that the first bill we will debate would block any research, pilots, or consideration about how to digitize the U.S. dollar. It is the reason that I call H.R. 1919, the ‘Anti-Innovation Act.’

Now, we’ve been discussing a lot about cryptocurrency. We’ve talked about two different acts, the ‘CLARITY Act’ and the ‘GENIUS Act.’ We’ve talked a lot about the intricacies of crypto, but the public does not understand all of this because the big issue is the Big Boys literally own all of the information. They’re the issuers etcetera, etcetera. It’s time for the United States government to take charge. And our central bank must be involved in the study and the research, so that we don’t issue crypto or anything else without the federal government knowing or being in control.

H.R. 1919 would immediately halt and prohibit the United States from research and exploring the potential benefits of a Central Bank Digital Currency, or CBDC.

A Central Bank Digital Currency is essentially a digital version of the dollar issued by the federal government that uses crypto technology known as a blockchain to record everything and everybody who owns tokens.

Open up. Let us know who the big issuers are.

There are two types of CBDCs, and this bill bans both of them. A retail CBDC is made available to consumers, directly from the Federal Reserve or from a bank or other financial institutions. A wholesale CBDC, is not available to the public, but only to banks and other financial institutions. This bill would ban both of these kind of CBDCs.

Now, when Republicans raise concerns about CBDCs they are talking about retail CBDCs, but because they are so averse to knowledge and studying things, they have no idea that their bill blocks research into other forms of digitizing the dollar that could truly cut costs for people.

For example, JP Morgan Chase has estimated that $100 billion could be saved in cross-border transactions every year if a wholesale CBDC is adopted.

Now, earlier this week, in the Rules Committee, we heard Republicans claim that we need to weaken oversight of private crypto, because doing so will help cross-border payments. So, I would ask my colleagues across the aisle, why abandon any research into making the greenback ready for the future?

The thing is, if this bill passes, the U.S. would be the only country in the world to ban any research into CBDCs. What are you afraid of? Why don’t you want the knowledge held and explained.137 countries are racing ahead, some studying, and others issuing, their own CBDCs. The foreign currency markets are evolving, but Republicans want to stick their heads in the sand. Those 137 countries and currency unions represent 98% of the global GDP. And China is one of the front-runners in the global race to implement a viable CBDC.

And do you know why China is quickly rolling out its digital currency? It desperately wants to create an alternative to the U.S. dollar to undermine the dominance of our currency.

Mr. Speaker, America reaps great riches because our currency, the dollar, is the primary currency used around the world for all sorts of trade, from sales of oil to commodities to financial contracts. One of those benefits is that when we take out a loan to buy a car or use our credit cards, our interest rates are much lower than in other countries.

Another benefit is that the U.S. can pressure bad actors, from Iran to Russia to China, by cutting off access to our financial system and the dollar, using sanctions. But those same countries would love to replace the dollar with their currency, or something else. One way China hopes to do that is to show that the dollar is an antiquated currency, whereas the Chinese currency is the future. It is so short-sighted to not even study how the dollar could be digitized, especially during the same week that Republicans want to let private companies create their own currencies.

And so, it is very important for all of us to understand that if you want innovation you will study, you will understand, you will be able to explain. If you really want to protect the American dollar, you will not put your head in the sand. You will allow this research to go on to make sure that the American dollar stays strong even in digital.

I urge all Members to reject the ‘Anti-Innovation Act.’”

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