US Lawmaker Introduces Bill Banning Fed From Issuing Digital Currency Directly To Individuals Cointelegraph
A US lawmaker has introduced a bill in Congress to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals. “It is important to note that the Fed does not and should not have the authority to offer retail bank accounts,” he stressed.
Bill introduced to ban Fed from issuing CBDCs directly to consumers
US Congressman Tom Emmer (MN-06) announced on Wednesday that he had “introduced a bill prohibiting the Federal Reserve from issuing central bank digital currency (CBDC) directly to individuals.”
He explained that countries like China are “developing CBDCs that basically omit the benefits and protections of money.”
In contrast, he stressed that US digital currency policy must protect financial privacy, maintain dollar dominance, and cultivate innovation. Otherwise, the Fed could “step into retail banking, collect personally identifiable information about users and track their transactions indefinitely,” the lawmaker warned.
Emmer further warned:
Not only would this CBDC model centralize Americans’ financial information, leaving them 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 a Fed account to access a US CBDC would set the Fed down an insidious path akin to China’s digital authoritarianism,” the congressman continued.
Representative Emmer said:
It is important to note that the Fed does not and should not have the power to offer retail bank accounts.
He further emphasized that “any CBDC implemented by the Fed must be open, permissionless, and private.”
The Congressman concluded, “In order to maintain the status of the dollar as the world’s reserve currency in the digital age, it is important that the United States lead with a posture that prioritizes innovation and does not does not aim to compete with the private sector”.
Meanwhile, the Federal Reserve still hasn’t released a report on its CBDC work that it promised to release last year. Fed Chairman Jerome Powell said earlier this week that the report would be released “in a matter of weeks.”
Do you think the Fed should issue a CBDC directly to individuals? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.