On February 22, Republican Congressman Tom Emmer of the US House of Representatives introduced a bill to ban the Federal Reserve (Fed) from issuing a central bank digital currency (CBDC). The “CBDC Anti-Surveillance State Act” aims to protect the financial privacy of American citizens by prohibiting the creation of a CBDC by the Fed without prior review and approval from Congress. Emmer argued that creating a CBDC could negatively impact financial privacy and individual freedom, as authorities and regulatory entities could use it as a tool to track and control citizens’ spending.
The bill prohibits the Fed from issuing a CBDC directly to anyone, prevents it from using a CBDC to implement monetary policy and control the economy, and sets the frame for more transparency on such projects. Emmer clarified he is not opposed to technological innovation that could come with the creation of a CBDC, but he maintained that these innovations should not infringe on citizens’ rights.
The creation of a CBDC could have a significant impact on financial privacy, as CBDC transactions would be recorded on a blockchain, allowing authorities to track and trace financial transactions in real-time. However, proponents argue that CBDCs could bring many benefits, including greater financial inclusion, reduced transaction costs, and faster settlement times.
Emmer has been an advocate of blockchain technology and cryptocurrencies, calling for regulation that encourages innovation and growth in the sector without harming people. He has been in favor of receiving part of his payment in crypto and has also expressed his concerns about the way the government handled the arrest of Sam Bankman-Fried.
China has been at the forefront of CBDC development, launching a pilot program for its digital currency in 2020 and conducting cross-border tests with other countries. China’s digital yuan has been in development since 2014 and is already being used in 23 regions of the country. If it becomes globally accepted, it could become a significant competitor to the US dollar, giving China a greater presence in the global economic scenario.
Congressman Tom Emmer’s CBDC Anti-Surveillance State Act seeks to protect the financial privacy of American citizens by prohibiting the creation of a CBDC by the Federal Reserve without prior review and approval from Congress. Emmer argued that creating a CBDC could negatively impact financial privacy and individual freedom, as authorities and regulatory entities could use it as a tool to track and control citizens’ spending. The bill sets the frame for more transparency on such projects, while also allowing for technological innovation.
The creation of a CBDC could have a significant impact on financial privacy, as CBDC transactions would be recorded on a blockchain, allowing authorities to track and trace financial transactions in real-time. However, proponents argue that CBDCs could bring many benefits, including greater financial inclusion, reduced transaction costs, and faster settlement times.
Emmer has been an advocate of blockchain technology and cryptocurrencies, calling for regulation that encourages innovation and growth in the sector without harming people. China has been at the forefront of CBDC development, launching a pilot program for its digital currency in 2020 and conducting cross-border tests with other countries. If it becomes globally accepted, it could become a significant competitor to the US dollar, giving China a greater presence in the global economic scenario.
The CBDC Anti-Surveillance State Act is a response to the potential for government intrusion into financial affairs that could come with
