The US Just Outsourced Its CBDC

As part of “Crypto Week,” the U.S. House of Representatives passed a bill banning the federal government from issuing a central bank digital currency (CBDC). The stated reason? Preventing government surveillance of its own citizens.

The text of the bill clearly says it aims to block the creation of a CBDC that would undermine Americans’ right to financial privacy.

Quite a right to invoke - especially just days after Congress passed the GENIUS Act, which explicitly requires all privately issued stablecoins to provide full transaction traceability to authorities.

Once GENIUS is in effect, the U.S. government won’t even need its own digital currency to monitor people’s financial activity. Stablecoins will do the job just fine - and without costing the government a dime to issue or maintain.

So no, banning a CBDC doesn’t mean financial privacy is back.

Real financial privacy mostly lives outside the stablecoins - in the realm of “unstable” cryptocurrencies with built-in confidentiality. And if you ever want to swap stablecoins for one of those private coins, you can do it at the best available rate on rabbit.io.