U.S. Rep. Tom Emmer (R-MN) introduced legislation that would halt the Federal Reserve from issuing a central bank digital currency (CBDC).
Emmer’s CBDC Anti-Surveillance State Act prohibits the Federal Reserve from issuing a CBDC directly to individuals or through an intermediary. Further, it also prohibits the Fed from using any CBDC to implement monetary policy.
“The administration has made it clear: President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC. That’s why I’m reintroducing my landmark legislation to put a check on unelected bureaucrats and ensure the United States’ digital currency policy upholds our values of privacy, individual sovereignty, and free-market competitiveness,” Emmer, the majority whip, said.
Unlike decentralized cryptocurrencies, like Bitcoin, a CBDC is a digital form of sovereign currency that is designed and issued by a government and transacts on a digital ledger that is controlled by that government. In short, Emmer said it could give the federal government the ability to surveil Americans’ transactions.
Emmer first introduced this bill in January of 2022. It is now co-sponsored by 50 colleagues, including fellow members of the Financial Services Committee, Reps. French Hill (R-AR), Warren Davidson (R-OH), Byron Donalds (R-FL), Pete Sessions (R-TX), Young Kim (R-CA), William Timmons (R-SC), Ralph Norman (R-SC), Barry Loudermilk (R-GA), Bryan Steil (R-WI), Scott Fitzgerald (R-WI), Mike Flood (R-NE), Bill Posey (R-FL), Mike Lawler (R-NY), Andy Ogles (R-TN), and Ann Wagner (R-MO).