Congressman Tom Emmer (MN-06) revived legislation to ban the federal government from issuing a CBDC (central bank digital currency). The Congressman argued that it would be no different than a surveillance tool.
Congressman Emmer said that if a digital currency is not designed to be private, permissionless, and open, it will resemble cash and be “nothing more than an Orwellian surveillance tool.” He added that it would “erode the American way of life.”
Tom Emmer also mentioned that Trump is aware of CBDCs’ dangers and has issued an executive order to prohibit federal agencies from issuing CBDCs. He said that the executive order should now become coded into law to permanently restrict the development of such a currency. He further added that the legislation would prevent any future administration from weaponizing it against US citizens.
Introduced in February 2023, the Anti-CBDC Surveillance State Act prevents the Fed from influencing monetary policies using CBDCs and restricts the Fed from tracking individual transactions.
Today, I introduced the CBDC Anti-Surveillance State Act to halt efforts of unelected bureaucrats in Washington, DC from stripping Americans of their right to financial privacy. 👇 pic.twitter.com/lONbHFZMk7
— Tom Emmer (@GOPMajorityWhip) February 22, 2023
Tom Emmer and other critics have frequently pointed to China’s digital yuan, through which the authoritarian government controls the financial behavior of its citizens.
Supporters of CBDCs, on the other hand, argue that they could improve financial inclusion and enhance payment efficiency. Policymakers at the Federal Reserve have frequently argued that CBDCs will help the USD stay competitive in the global economy. Its proponents have also mentioned that private stablecoins and foreign CBDCs (such as China’s digital yuan) could reduce US financial dominance.
Congressman Emmer announced stakeholder support for the Anti-CBDC bill
Emmer has long been against the issuance of CBDCs. Back in 2023, Tom Emmer said in an X post, “Any digital version of the dollar must uphold our American values of privacy, individual sovereignty, and free market competitiveness. Anything less opens the door to the development of a dangerous surveillance tool.”
In another recent government press release, Congressman Emmer announced stakeholder support for the Anti-CBDC Surveillance State Act. The Anti-CBDC Surveillance State Act has been endorsed by the American Bankers Association, Blockchain Association, Bank Policy Institute, and several other stakeholders.
Rob Nichols, President & CEO of American Bankers Association said, “ABA applauds Majority Whip Emmer for his leadership in introducing the Anti-CBDC Surveillance State Act. The risks of a U.S. central bank digital currency — which would disintermediate banking and limit banks’ ability to lend and support economic growth — far outweigh any theoretical benefits.”
Similarly, Kristin Smith, CEO of the Blockchain Association, said that CBDCs are a major privacy concern for American citizens. Kristin further added, “The right to financial privacy is protected by the Constitution. We support the Anti-CBDC Surveillance State Act – legislation aimed at preventing a CBDC from being issued in the United States.”
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