Central Bank Digital Currency (CBDC) Projects Are Foundering In Five-Eye Nations. What Gives?

Canada and Australia have shelved plans for retail central bank digital currencies (CBDCs), while the US may become the first country to explicitly ban the central bank from issuing a CBDC. A financial revolution is underway, with 134 countries exploring CBDCs, but the US is lagging behind. The US House of Representatives has passed a bill, the "CBDC Anti-Surveillance State Act," which proposes amendments to the Federal Reserve Act to prohibit the US Federal Reserve from issuing CBDCs. If passed, the bill would prevent the Fed from offering products or services directly to individuals, maintaining accounts on behalf of individuals, or issuing a central bank digital currency. The bill still needs to clear the Senate, but it has received support from Trump, who has announced that he would "never allow the creation of a central bank digital currency" as president. Think tanks are warning that the US risks losing its economic and geopolitical advantages if it doesn't adapt to the increasingly digital financial system. The Atlantic Council has warned that the passage of the bill could harm the future of the dollar and throttle innovation in the public and private sectors. Canada and Australia have decided not to issue retail CBDCs, citing concerns about citizens' privacy and security. Instead, they are focusing on preparing for the ongoing evolution of payments and exploring wholesale CBDCs. The shift away from retail CBDCs appears to be a broader global trend, with central banks in Switzerland and Taiwan also expanding wholesale CBDC projects.