Republican Rep. Tom Emmer Introduces Ban Fed’s CBDC Bill

On February 22, Republican Congressman Tom Emmer of the House of Representatives introduced a bill to prohibit the Federal Reserve Bank (Fed) from issuing 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 by Congress.

Emmer argued that the creation of a CBDC could negatively affect financial privacy and individual freedom, as authorities and regulatory entities could use it as a tool to monitor and control citizens’ spending.

Emmer further explained that the bill prohibits the Fed from issuing CBDC directly to anyone, prevents it from using a CBDC to implement monetary policy and control the economy, and sets the stage for more transparency in such projects.

The MP clarified that he is not opposed to the technological innovation that could come with the creation of a CBDC. However, he argued that these innovations should not infringe on the rights of citizens.

Financial privacy is a priority

The creation of a CBDC could have a significant impact on financial privacy. Since CBDC transactions will be recorded on a blockchain, authorities would be able to monitor and track financial transactions in real time. This has raised concerns about privacy and data surveillance and the potential for government interference in financial affairs.

However, proponents argue that CBDCs could bring many benefits, including greater financial inclusion, reduced transaction costs and faster settlement times. Additionally, CBDCs could provide an alternative to traditional banking services for people who do not have access to them.

For several years, Emmer has been an advocate for blockchain technology and cryptocurrencies, calling for regulations that encourage innovation and growth in the field without harming people. Emmer is known for its efforts to boost crypto adoption and drive industry growth.

He was in favor of receiving part of his payment in crypto and also expressed concerns about the government’s handling of Sam Bankman-Fried’s arrest. Coinbase has its name on the list of policies that are “very supportive” of crypto.

China dominates CBDC development

China is at the forefront of CBDC development, launching a pilot program for its digital currency in 2020. While other countries are exploring the possibility of issuing such a product, China has led the way, conducting cross-border trials with countries such as the United Arab Emirates, Hong Kong and Thailand, among others.

China’s digital yuan has been in development since 2014 and is already in use in 23 regions of the country, facilitating the transfer of more than 100 billion yuan (about $15.5 billion). If globally accepted, it could become a major competitor to the US dollar, giving China a bigger presence in the global economic scenario.

While the US considers the possibility of launching its own CBDC, China’s dominance in the world of digital currencies continues to grow, with the potential to reshape the global financial landscape.

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