Minnesota Congressman Tom Emmer introduced a bill prohibiting the Federal Reserve from issuing central bank digital currency (CBDC) to individuals.
The pro-crypto politician does not want the US central bank to distribute stablecoins to individuals for a number of reasons. January 12, Emmer tweeted that he had introduced legislation to prevent unilateral Fed control over a US digital currency.
He said other countries like China are developing CBDCs that omit the benefits and protections of money. A digital dollar should be exactly that – a transparent blockchain-based version of the paper equivalent.
Emmer, who has previously warned against centralization and control, fears that financial privacy could be eroded if the Fed controls a CBDC:
“It’s more important than ever to ensure that U.S. digital currency policy protects financial privacy, maintains dollar dominance, and cultivates innovation.”
Warning about Chinese authoritarianism
Rep. Emmer went on to say that failure to follow these principles could allow the Federal Reserve to “turn into a retail bank.” This would be bad for a number of reasons as it could collect personal information and track citizen transactions indefinitely.
The background and details were posted on Emmer’s government website, which also contained a link to the bill. He continued:
“Not only does this CBDC model raise ‘single point of failure’ issues, leaving Americans’ financial information vulnerable to attack, but it could be used as a surveillance tool that Americans should never be forced to tolerate. from their own government.”
Several reports have suggested this is the main motivation behind the CBDC’s push into China – another tool in its ever-expanding arsenal of surveillance and censorship.
Emmer said if the Fed required users to open accounts directly with them to access the digital dollar, it would set the central bank on “an insidious path akin to China’s digital authoritarianism.”
A US CBDC must be open, permissionless and private, he said before adding that it must also be accessible to everyone while preserving the privacy elements of money.
The United States must prioritize innovation without competing with the private sector, he said before concluding:
“Simply put, we need to prioritize blockchain technology with American characteristics, rather than emulating China’s digital authoritarianism out of fear.”
Tom Emmer is a pro-crypto congressman who even accepted cryptocurrencies to fund his election campaign in August 2020.
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