Georgia panel favorably reports bill to bar state participation in Federal Reserve CBDC pilots

Representative Carter Barrett presented House Bill 1053 (LC500613) to the Banks and Financial Institutions committee, saying the short measure would "discourage the creation and implementation of a CBDC by the Fed" by directing that Georgia not participate in any pilot programs and that state agencies not accept payment in a Federal Reserve-issued digital currency.

Barrett described a central bank digital currency as "programmable, traceable, and trackable digital dollars" and warned it could replace dollars in bank accounts and wallets, erode privacy and concentrate monetary power with the Federal Reserve. "Every single thing you do, every dollar you spend will be there available to government," Barrett said, arguing the bill is intended to "send the brakes on" on the Fed's work and to protect local banks and credit unions.

Witnesses representing industry and advocacy groups urged support. Beau Brannen of the Georgia Bankers Association said a CBDC would "cannibalize" bank deposits and shift them to the Federal Reserve, leaving local institutions with fewer resources to make loans in their communities. Brian Allen, vice chair of the Libertarian Party of Georgia, said a CBDC would be "a threat both to our economic well-being and, even more seriously, our basic civil liberties," warning of risks including account freezes and the use of negative interest rates. James Quarles of Heritage Action and Cash Dravette of the Georgia Credit Unions Association also spoke in favor, citing privacy and infrastructure concerns.

Barrett and several witnesses pointed to ongoing research and pilot work at the Federal Reserve and other institutions. "You can go to the Federal Reserve's website and it'll give you a lot of detail," Barrett said when asked about pilots. Taylor Hawkins of Frontline Policy Counsel noted that the New York Federal Reserve launched a pilot in 2022 and that executive-level U.S. work on CBDC research is underway.

After brief committee discussion the chair called for a motion. Representative Buren moved "Do pass," a second was recorded from Vice Chairman Kennedy, and the chair announced the motion carried unanimously, favorably reporting HB1053 out of committee. The committee did not record a roll-call tally on the record in the transcript.