Bill Overview
Title: No CBDC Act
Description: This bill generally prohibits the Federal Reserve Board, Federal Reserve Banks, the Department of the Treasury, and other agencies from issuing or using a central bank digital currency.
Sponsors: Sen. Lee, Mike [R-UT]
Target Audience
Population: People who use or rely on U.S. currency and financial services
Estimated Size: 331000000
- The introduction of a central bank digital currency (CBDC) would potentially impact all individuals who currently use, or may use in the future, U.S. currency and related financial services.
- CBDCs have implications for monetary policy, financial stability, and the banking sector, hence its prohibition would maintain the status quo rather than introducing new changes.
- A CBDC could affect those without access to traditional banking services if it provided an alternative means of participating in the financial system.
- Global financial systems may observe and be influenced by the U.S.'s decision regarding CBDCs; however, the immediate legal impact of this bill is domestic.
Reasoning
- The prohibition of issuing a CBDC maintains the status quo, thereby impacting people more in theory rather than direct change to everyday lives.
- Those who might have been uniquely impacted by a CBDC — such as individuals reliant on cash, those without bank accounts, and small businesses — would not see any transformation in their financial transactions.
- The impact may have been more theoretical for larger institutions or those invested in digital finance innovations. However, average citizens are likely unaffected by the policy at a personal level.
- A range of perspectives is important to capture, including those of financial sector workers, everyday consumers, tech-savvy individuals, and unbanked populations.
- Most of the population would experience negligible direct impact, while financial institutions may have diverse opinions depending on their business model and anticipation of digital shifts.
Simulated Interviews
Financial Analyst (New York, NY)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 6/20
Statement of Opinion:
- The prohibition prevents disruption to the current financial system, which can be beneficial from a stability standpoint.
- As someone interested in digital economics, I was curious about the potential of a CBDC to innovate financial transactions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Retail Store Owner (Cleveland, OH)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- The policy doesn't change much for how I conduct daily transactions.
- I had concerns about how a CBDC might impact cash usage in my business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Software Developer (San Francisco, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- The decision is a missed opportunity for digital currency innovation in the U.S.
- The policy doesn't directly impact my day-to-day finances, but it impacts future innovation possibilities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 6 | 9 |
| Year 10 | 6 | 9 |
| Year 20 | 5 | 9 |
Retired School Teacher (Kansas City, MO)
Age: 60 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- This policy helps maintain the financial system I'm familiar with and comfortable using.
- I have limited knowledge of digital currencies, and I don't see the need for them in my life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
University Student (Austin, TX)
Age: 23 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- As a student interested in economics, I'm disappointed to see this potential avenue of research and innovation halted.
- For my personal finances, this policy does not have a palpable effect.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 5 | 9 |
| Year 20 | 5 | 8 |
Bank Manager (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- From a banking perspective, maintaining the existing system simplifies operations.
- Customers seem relieved not to have another currency system to understand and manage.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Non-profit Worker (Seattle, WA)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.5 years
Commonness: 4/20
Statement of Opinion:
- A CBDC might have improved access to digital transactions for unbanked populations that I work with.
- The policy doesn't affect my personal finances directly, but I see it as a missed opportunity for broader financial inclusion.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 6 | 9 |
| Year 10 | 6 | 9 |
| Year 20 | 5 | 9 |
Bartender (Chicago, IL)
Age: 27 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- I don't really know how a CBDC would change anything for me since I rely on cash for tips.
- It seems like this policy just means things stay the same, which is fine by me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Accountant (Phoenix, AZ)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- Avoiding a CBDC sidesteps concerns around privacy and security of a new federal digital system.
- For personal finances, life continues without much variation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Retired Mechanic (Houston, TX)
Age: 64 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- I'm glad things are not changing with how I do my banking.
- Don't know much about digital currency, but I don't think it's for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $0 (Low: $0, High: $0)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Maintaining the status quo signifies no immediate costs but also forfeits any potential benefits from adopting a CBDC.
- A prohibition on CBDCs prevents potential transformation in the U.S. financial landscape.