A measure has been presented in Congress that would prevent the Federal Reserve from distributing a central bank digital currency (CBDC) to people directly. “It’s crucial to underline that the Fed doesn’t have the power to issue consumers bank accounts, and it shouldn’t,” he said.
A bill has been introduced to prevent the federal government from distributing CBDC directly to customers.
Rep. Tom Emmer (R-MN-06) of Minnesota said on Wednesday that he has “filed a bill preventing the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.”
Nations such as China “create CBDCs that fundamentally exclude the benefits and safeguards of currency,” he noted.
He emphasized, on the other hand, that US virtual currency legislation must safeguard financial privacy, preserve the dollar’s dominance, and support creativity. The Fed might otherwise “transform itself into a banking group, acquire individually identifying personal data, and follow their activities eternally,” according to the congressman.
Emmer went on to say:
“Not only would this CBDC model concentrate Americans’ financial information, making it vulnerable to attack, but it might also be utilized as a surveillance tool by their own government, something Americans should never accept.”
“Forcing consumers to register an account with the Fed in order to use a US CBDC would set the Fed on an evil road analogous to China’s digital dictatorship,” the congressman stated.
Rep. Emmer expressed his opinion as follows:
“It’s vital to highlight that the Fed doesn’t have the power to issue retail bank accounts, and it shouldn’t.”
“Any CBDC deployed by the Fed must be open, permissionless, and private,” he continued.
“It is critical that the United States leads with a stance that promotes innovation and does not attempt to compete with the private sector in order to retain the dollar’s place as the world’s reserve currency in the digital era,” the congressman said.
However, the Federal Reserve has yet to provide a report on its CBDC work, after promising to do so last year. The review will be released “within weeks,” according to Fed Chairman Jerome Powell.
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