This Wednesday, Representative Tom Emmer introduced a particular bill intending to prohibit the Federal Reserve (Fed) from supplying central bank digital currency, or CBDC, to consumers directly. According to Emmer, allowing the Fed to do so would only spark even more privacy issues – citing China’s digital yuan as a prime example.
On top of the potential adverse financial surveillance, Emmer argues that CBDC issuance from the Fed itself would turn out to be too centralized, thus, potentially rendering users’ private information more susceptible to attacks. Much like the whole crypto community, Emmer believes that the digital dollar – if it does come – should put forward financial privacy, encourage further innovation, and maintain the dominance of the US fiat currency. According to Emmer, allowing the Fed to issue CBDC would only contradict all these.
The lawmaker’s proposed law came when central banks worldwide were at the height of considering the issuance of CBDC as the next step forward for the betterment of their respective economies. Interestingly, his announcement also came just a day after the Chairman of the Fed, Jerome Powell, revealed at a Senate hearing that the highly-anticipated results report from the US central bank regarding stablecoins and CBDCs will finally come in the next few weeks.