House Majority Whip to Reintroduce Bill Against Central Bank Digital Currency
House Majority Whip Tom Emmer is set to reintroduce the Central Bank Digital Currency Anti-Surveillance State Act, countering the momentum behind Central Bank digital currency (CBDC). The bill aims to prevent the Federal Reserve (Fed) and its member banks from issuing a digital version of the US dollar for monetary policy implementation. While CBDCs have gained interest globally, with 130 countries exploring digitalizing their currencies, they remain controversial among cryptocurrency enthusiasts and conservatives. Although the Biden administration has no plans to issue a digital US dollar, GOP lawmakers remain skeptical. Emmer’s updated bill prohibits intermediated CBDCs and removes the requirement for the Fed to report pilot programs to Congress. The chances of anti-CBDC legislation passing this year are slim due to Democratic control over the Senate and White House. However, supporters hope the bill raises awareness of CBDC drawbacks.
Clash Over CBDC Issuance Sparks Political Showdown
The global interest in the digital form of a country’s fiat currency has surged over the past few years, with many countries exploring the possibility of digitalizing their currencies. However, CBDCs have sparked controversy among cryptocurrency enthusiasts and conservatives despite falling under the broader category of digital assets.
The Biden administration has no plans to issue a digital version of the US dollar. However, GOP lawmakers remain skeptical due to the Federal Reserve’s initial steps, such as research and pilot programs, exploring the possibility of implementing a CBDC.
CBDCs have already become a talking point among Republican presidential candidates for the 2024 elections, including Ron DeSantis and Vivek Ramaswamy. Democratic presidential hopeful Robert F. Kennedy Jr. has also condemned CBDCs, branding them as “instruments of control and oppression.”
Key Changes in Reintroduced Legislation
House Majority Whip Tom Emmer is reintroducing the Central Bank Digital Currency Anti-Surveillance State Act with significant changes from its original text. Firstly, it prohibits “intermediated CBDCs” – CBDCs issued by the Federal Reserve but managed by retail banks and other financial institutions instead of directly controlled by the Fed. Secondly, the new version removes the requirement for the Fed to report any Central Bank digital currency pilot programs or studies to Congress, addressing such matters in separate bills.
Similar anti-Central Bank digital currency legislation has been introduced in the Senate. However, with Democrats’ control over the Senate and the White House, the chances of any anti-CBDC legislation passing this year are slim. Nevertheless, supporters hope the bill will raise public awareness regarding the potential drawbacks associated with CBDCs.
Emmer’s Concerns and Subcommittee Hearing
Emmer expressed concerns about the Biden administration compromising the financial privacy rights of Americans in exchange for a surveillance-style CBDC. He emphasized the importance of the legislation in curbing the power of unelected bureaucrats and ensuring that US digital currency policy upholds values such as privacy, individual sovereignty, and free-market competitiveness.
A House Financial Services subcommittee hearing on CBDCs is scheduled for later this week.
Source: Fox Business
Hot Take: Will Anti-CBDC Legislation Gain Traction?
House Majority Whip Tom Emmer’s reintroduced bill against Central Bank digital currencies (CBDCs) faces an uphill battle in a Democratic-controlled Senate and White House. While the bill aims to raise awareness about the potential drawbacks of CBDCs, its chances of passing this year appear slim. However, the growing interest in CBDCs has sparked political debate, with Republican and Democratic presidential candidates expressing concerns or outright condemnation of CBDCs. As CBDCs continue to be a hot topic, it remains to be seen how the clash over their issuance will play out in the political arena. The upcoming House Financial Services subcommittee hearing on CBDCs will shed light on the discussions surrounding this contentious issue.
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