Minnesota Representative Tom Emmer has announced he will be introducing a bill intended to prevent the Federal Reserve from acting as a retail bank in the potential issuance of a digital dollar.
In a Wednesday announcement, Emmer said the bill would prohibit the Fed from issuing a central bank digital currency, or CBDC, directly to U.S. consumers. According to the Minnesota representative, having the government entity require users to open accounts to access the benefits of a digital dollar would “put the Fed on an insidious path akin to China’s digital authoritarianism.”
“The Fed does not, and should not, have the authority to offer retail bank accounts,” said Emmer. “Regardless, any CBDC implemented by the Fed must be open, permissionless and private. This means that any digital dollar must be accessible to all, transact on a blockchain that is transparent to all, and maintain the privacy elements of cash.”
Today, I introduced a bill prohibiting the Fed from issuing a central bank digital currency directly to individuals. Here’s why it matters: pic.twitter.com/S7pQ5rVc6n
— Tom Emmer (@RepTomEmmer) January 12, 2022
In addition to claims of potential financial surveillance, the U.S. lawmaker criticized a CBDC rollout from the Fed as being too centralized, leaving users’ personal information vulnerable to attack. According to Emmer, a digital dollar should be aimed at protecting financial privacy, maintaining the dominance of the country’s fiat currency, and encourage innovation.
The introduction of the bill came just one day after Jerome Powell said…