Critics Warn GENIUS Act Could Enable “Backdoor CBDC” Surveillance

[bonk]

The GENIUS Act was designed to block the creation of a Central Bank Digital Currency (CBDC) in the United States, preventing the Federal Reserve from issuing a digital dollar directly to individuals. However, critics argue the legislation could still expand financial surveillance through privately issued stablecoins. Aaron Day, a fellow at the Brownstone Institute, claims the law effectively creates what he calls a “backdoor CBDC.”

According to Day, the main difference between stablecoins and CBDCs is who issues them—private institutions versus central banks. He argues that if governments still oversee or regulate the system, the potential for tracking and controlling financial transactions remains. With stablecoin transactions already reaching tens of trillions of dollars annually, critics fear increased government oversight could give authorities more visibility into how digital money moves through the economy.

[madmax]

genius act: preventing cbdc but giving authorities more visibility anyway, nice loophole

[UndeadBeastMonkeykiller]

CBDC debate just changed form.

[9777089235]

Different issuer, same oversight worries......