tl;dr
Congressman Tom Emmer reintroduced legislation to prevent the federal government from issuing a central bank digital currency (CBDC), citing concerns about financial privacy and government overreach. The bill aims to explicitly ban the Federal Reserve from developing, issuing, or implementing a digi...
Congressman Tom Emmer has reintroduced legislation to prevent the federal government from issuing a central bank digital currency (CBDC), arguing that it could threaten financial privacy and empower government overreach. The Anti-CBDC Surveillance State Act seeks to explicitly ban the Federal Reserve from developing, issuing, or implementing a digital dollar, with 100 Republican co-sponsors reflecting mounting conservative opposition to a government-backed digital currency. Emmer argues that a government-issued CBDC could function as a financial surveillance tool, undermining the freedoms associated with cash transactions, and cites China's digital yuan rollout as an example of potential control over financial behavior.
The bill aims to explicitly ban the Federal Reserve from developing, issuing, or implementing a digital dollar, and also blocks the Treasury Department from directing the Fed to create a digital dollar without explicit congressional approval. Emmer and 100 Republican co-sponsors argue that a CBDC could be used as a surveillance tool and could erode financial freedoms. While supporters believe a digital dollar could enhance payment efficiency and financial inclusion, the bill's reintroduction reflects ongoing conservative opposition to a government-backed digital currency.
The reintroduced legislation, known as the Anti-CBDC Surveillance State Act, prevents the Federal Reserve from developing, issuing, or implementing a digital dollar, prohibiting the use of a CBDC to influence monetary policy, curtail financial activities, or track individual transactions. It also blocks the Treasury Department from directing the Fed to create a digital dollar, ensuring that any future development of a government-controlled digital currency would require explicit congressional approval. Emmer has positioned himself as a leading opponent of CBDCs, expressing concerns that such a system could function as a financial surveillance tool that undermines the freedoms associated with cash transactions.
The bill, which has 100 Republican co-sponsors, reflects mounting conservative opposition to a government-backed digital currency. Critics argue that a CBDC could allow federal agencies to monitor spending habits, freeze assets, or restrict transactions based on political or social considerations. Emmer and other opponents have pointed to China’s rollout of its digital yuan as an example of how a CBDC could be used to control financial behavior.
Federal Reserve Chair Jerome Powell has stated that the central bank would not move forward with a digital dollar without congressional approval. However, the bill’s path forward remains uncertain in the face of the Democratic majority in the Senate and lack of Biden administration support. Nonetheless, its reintroduction signals that CBDC opposition will remain a key issue for Republicans.