In a significant move, US Congressman Tom Emmer has introduced a new bill designed to prohibit the Federal Reserve from developing a Central Bank Digital Currency (CBDC). The bill, known as the "Central Bank Digital Currency Anti-surveillance State Act," seeks to uphold core values of privacy, individual sovereignty, and free market competitiveness in the realm of digital currencies.
Key Points from Congressman Emmer's Announcement:
1. Protecting Financial Privacy: The bill aims to safeguard the financial privacy of American citizens by preventing the creation of a CBDC that could potentially infringe on individuals' right to privacy. Congressman Emmer expressed concerns that a CBDC could provide unfettered access to Americans' financial data, unlike physical US dollars.
2. Opposition to Surveillance Tool: Emmer likened a CBDC without privacy, openness, and permissionless access to a surveillance tool that could be exploited for oppressive purposes. He emphasized that a CBDC lacking these qualities would undermine the values integral to the American way of life.
3. Emphasis on Openness and Permissionless Nature: The proposed legislation underscores the importance of a CBDC being open, permissionless, and private, similar to physical cash. Emmer's vision for a digital currency includes preserving the principles of individual sovereignty and free-market competition.
4. Concerns Over Administrative Control: The bill criticizes the administrative state for potentially wresting control over the future of cryptocurrency from the hands of the people.
5. Uncertain Passage: While Congressman Emmer has introduced the bill, its passage and implementation remain uncertain. The legislative process will determine whether it becomes law.
Background on CBDC Discussion in the US:
The United States has been divided over the concept of a Central Bank Digital Currency, with differing opinions within the government and the broader cryptocurrency industry. Many countries worldwide have explored or initiated CBDC projects, but the US has taken a more cautious approach.
Federal Reserve Vice Chair for Supervision Michael Barr recently stated that the US is "a long way" from making a decision on whether to issue a CBDC. While the Federal Reserve has actively researched CBDCs through various means, the launch of a US CBDC remains an ongoing and deliberative process.
As Congressman Emmer's bill enters the legislative arena, it reflects the ongoing debate over the role of the Federal Reserve in the digital currency landscape and the principles that should guide the development of a potential US CBDC. The outcome of this legislative effort will have significant implications for the future of digital currencies and financial privacy in the United States.
