Key Points:
- Congressman Emmer’s bill limits the Federal Reserve’s authority to create a CBDC.
- Emmer emphasizes privacy concerns, likening a CBDC to a potential surveillance tool.
- The bill’s fate remains uncertain as the US debates its stance on CBDC development.
US Congressman Tom Emmer has proposed a new bill to limit the Federal Reserve’s authority to create a Central Bank Digital Currency (CBDC). The legislation, known as the Central Bank Digital Currency Anti-surveillance State Act, seeks to ensure oversight over unelected officials and uphold privacy principles, individual sovereignty, and free market competition within the United States’ digital currency policy.
Emmer’s CBDC Restriction Bill
Emmer emphasizes the importance of a CBDC being open, permissionless, and private, much like physical cash. He contends that without these characteristics, a CBDC could potentially become a surveillance tool similar to what is seen in authoritarian regimes like China’s Communist Party. According to Emmer, it could be used to infringe upon the American way of life.
While many countries worldwide have been exploring or implementing their own CBDCs, the United States has shown divided opinions on the matter. Emmer’s concerns primarily revolve around the potential threat to Americans’ financial privacy posed by introducing a CBDC.
Emmer criticizes the administrative state’s attempts to control the future of cryptocurrencies, arguing that a CBDC would provide unrestricted access to individuals’ financial data, unlike physical US Dollars.
Privacy Concerns and CBDC Surveillance
Meanwhile, the fate of the bill proposing a ban on the Federal Reserve’s ability to create a CBDC remains uncertain. It is unclear whether it will be passed into law immediately.
Michael Barr, the Vice Chair for Supervision at the Federal Reserve, has stated that the US may take time to launch its own CBDC. He suggests that issuing a CBDC is still a long way off.
However, it is important to note that the Federal Reserve has been actively researching CBDCs through public research papers, technology experiments, and limited pilot programs. This indicates that while a US CBDC remains possible, its development may still be far away.
Conclusion
Congressman Tom Emmer’s proposed bill aims to restrict the Federal Reserve’s authority to create a CBDC to protect privacy principles and individual sovereignty. The debate over the future of CBDCs in the United States continues, with the outcome uncertain.
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