Bill Introduced to Prevent Central Bank Digital Currency Surveillance
Majority Whip Tom Emmer has reintroduced a bill aimed at stopping the introduction of a central bank digital currency (CBDC) that could be used for population surveillance. The legislation would prohibit the Federal Reserve Bank from issuing a CBDC directly to individuals, thereby preventing the collection of their data. The updated bill, which has 50 co-sponsors, was first filed in January 2022.
In a statement, Emmer emphasized the importance of an open, permissionless, and private CBDC that resembles cash. He argued that a government-issued CBDC designed otherwise would become a surveillance tool similar to those used by the Chinese Communist Party. Emmer’s bill aims to put a check on unelected bureaucrats and ensure that the US digital currency policy upholds privacy, individual sovereignty, and free-market competitiveness.
Emmer’s Bill Advocated as a Counterpoint to China’s CBDC Model
The bill, known as the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act, represents two conflicting visions for the future of digital currencies. According to David McIntosh, president of Club for Growth and a supporter of the bill, CBDCs could emulate China’s approach where the government has significant control over digital assets and can monitor their usage. On the other hand, the US vision supports a free marketplace that protects consumer data, promotes innovation, and encourages competition.
A CBDC is a digital form of a country’s currency issued by its government. Unlike decentralized cryptocurrencies, it operates on a digital ledger controlled by the government, potentially allowing for financial transaction surveillance and suppression of politically unpopular activities.
Bipartisan Concerns Over CBDCs
Concerns about CBDCs have been raised across political parties. Democratic candidate Robert F. Kennedy Jr. and Republican Florida Governor Ron DeSantis have openly criticized CBDCs recently. Governor DeSantis has even taken action to prohibit CBDCs in Florida, arguing that an American CBDC would grant the government excessive power at the expense of individual freedom.
Hot Take: Bill Introduced to Safeguard Privacy and Individual Sovereignty in Digital Currency
Majority Whip Tom Emmer has reintroduced a bill aimed at preventing the introduction of a central bank digital currency (CBDC) that could be used for surveillance purposes. Emmer’s bill emphasizes the need for an open, permissionless, and private CBDC that resembles cash, rather than a tool for population control. The bill is seen as a counterpoint to China’s CBDC model, advocating for a US vision that protects consumer data, encourages innovation, and fosters competition. With bipartisan concerns over CBDCs growing, this bill highlights the importance of safeguarding privacy and individual sovereignty in the digital currency landscape.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies.Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.
