U.S. legislators have introduced a bill to stop the Federal Reserve issuing digital currencies (CBDC) to individuals directly. “It is important to note that the Fed does not, and should not, have the authority to offer retail bank accounts,” he stressed.
To Prohibit The Fed from Directly Issuing CBDC to Consumers, a Bill was Introduced
U.S. Congressman Tom Emmer (MN-06) announced Wednesday that he has “introduced a bill prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.”
He explained that countries like China “develop CBDCs that fundamentally omit the benefits and protections of cash.”
In contrast, he stressed that the U.S. digital currency policy must protect financial privacy, maintain the dollar’s dominance, and cultivate innovation. Otherwise, the Fed could “mobilize itself into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely,” the lawmaker cautioned.
Emmer warned further:
Not only would this CBDC model centralize Americans’ financial information, leaving it vulnerable to attack, but it could also be used as a surveillance tool that Americans should never tolerate from their own government.
“Requiring users to open up an account at the Fed to access a U.S. CBDC would put the Fed on an insidious path akin to China’s digital authoritarianism,” the congressman continued.
Rep. Emmer stated:
Important to remember that retail accounts cannot be offered by the Fed.
He further emphasized that “any CBDC implemented by the Fed must be open, permissionless, and private.”
The congressman concluded: “In order to maintain the dollar’s status as the world’s reserve currency in a digital age, it is important that the United States lead with a posture that prioritizes innovation and does not aim to compete with the private sector.”
The Federal Reserve has yet to publish a report about its CBDC activities, despite promising it would. Fed Chair Jerome Powell said earlier this week that the report will be published “within weeks.”
Are you a believer that the Fed should directly issue CBDC to individual consumers? Leave your comments below.
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