Citing financial privacy and currency protection concerns, a group of lawmakers recently advocated legislation prohibiting issuing of a central bank digital currency (CBDC).
Majority Whip Tom Emmer (R-MN) recently joined U.S. Rep. French Hill (R-AR) and eight House of Representatives colleagues in co-sponsoring the CBDC Anti-Surveillance State Act.
The legislation prohibits the Federal Reserve from issuing a CBDC directly to an individual mobilizing itself into a retail bank able to collect personal information on all Americans.
“Any digital version of the dollar must uphold our American values of privacy, individual sovereignty, and free market competitiveness,” Emmer said. “Anything less opens the door to the development of a dangerous surveillance tool. After all, America remains a technological leader not because we force innovations to adopt our values under regulatory duress, but because we allow technology that holds these values at their core to flourish.”
Bill proponents noted it would also bar the Federal Reserve from using any CBDC to implement monetary policy as a means of ensuring the Federal Reserve could not use a CBDC as a tool to control the economy and requires the Federal Reserve Board of Governors to consult each Federal Reserve bank about the development of a CBDC study or pilot program while issuing a quarterly report to Congress on progress and findings.
“As Chairman of the Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, it is my top priority to protect people’s privacy and their data,” Hill said. “When it comes to consideration and design of any possible U.S. Central Bank Digital Currency (CBDC), the federal government cannot and does not have the authority to issue a CBDC directly to individuals without explicit Congressional approval.”