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January 20, 2022
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US Lawmaker Launches Bill to Prohibit the Fed From Issuing Digital Currency Directly to Individuals – Regulation Bitcoin News

A U.S. lawmaker has launched a invoice in Congress to prohibit the Federal Reserve from issuing a central financial institution digital foreign money (CBDC) immediately to people. “It is important to note that the Fed does not, and should not, have the authority to offer retail bank accounts,” he pressured.

Bill Introduced to Prohibit the Fed From Issuing CBDC Directly to Consumers

U.S. Congressman Tom Emmer (MN-06) introduced Wednesday that he has “introduced a bill prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.”

He defined that nations like China “develop CBDCs that fundamentally omit the benefits and protections of cash.”

In distinction, he pressured that the U.S. digital foreign money coverage should shield monetary privateness, preserve the greenback’s dominance, and domesticate innovation. Otherwise, the Fed might “mobilize itself into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely,” the lawmaker cautioned.

Emmer additional warned:

Not solely would this CBDC mannequin centralize Americans’ monetary info, leaving it weak to assault, however it may be used as a surveillance device that Americans ought to by no means tolerate from their very own authorities.

“Requiring users to open up an account at the Fed to access a U.S. CBDC would put the Fed on an insidious path akin to China’s digital authoritarianism,” the congressman continued.

Rep. Emmer opined:

It is vital to be aware that the Fed doesn’t, and shouldn’t, have the authority to provide retail financial institution accounts.

He additional emphasised that “any CBDC implemented by the Fed must be open, permissionless, and private.”

The congressman concluded: “In order to maintain the dollar’s status as the world’s reserve currency in a digital age, it is important that the United States lead with a posture that prioritizes innovation and does not aim to compete with the private sector.”

Meanwhile, the Federal Reserve nonetheless has not printed a report on its CBDC work which it promised to launch final 12 months. Fed Chair Jerome Powell mentioned earlier this week that the report will probably be printed “within weeks.”

Tags on this story
CBDC, central financial institution digital foreign money, Congressman Tom Emmer, Digital Dollar, Fed Chairman, Federal Reserve, Federal Reserve Chairman, issuing digital foreign money, jerome powell, prohibit Federal Reserve, tom emmer, us lawmaker

Do you suppose the Fed ought to concern a CBDC immediately to people? Let us know in the feedback part beneath.

Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source programs, community results and the intersection between economics and cryptography.

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