Lawmakers Propose New Bill To Prevent Creation Of CBDC

It seems that there is very significant opposition to the creation of a CBDC as it was just revealed that a bill has been proposed to prevent it.

U.S. Congressman Tom Emmer had introduced a new bill that essentially bans the Federal Reserve from creating a CBDC that can be used by anyone.

The bill states that the Federal Reserve cannot issue any products or services to any individuals which includes digital assets like CBDCs.

Emmer shares that the reasons for the introduction of this bill include the fact that a CBDC would violate control and the privacy of everyone who was forced to use it.

This has indeed been a concern by many who first heard of CBDCs, but many central banks around the world have continued to test pilot programs despite the concern.

Today, I introduced the CBDC Anti-Surveillance State Act to halt efforts of unelected bureaucrats in Washington, DC from stripping Americans of their right to financial privacy. 👇 pic.twitter.com/lONbHFZMk7

— Tom Emmer (@GOPMajorityWhip) February 22, 2023

BitcoinMagazine reports:

Rep. Emmer explained in his tweet announcing the bill that “Any digital version of the dollar must uphold our American values of privacy, individual sovereignty, and free market competitiveness. Anything less opens the door to the development of a dangerous surveillance tool.”

The bill aims to stem the creation of a CBDC due to the various issues many see as potential results of the creation of an American CBDC. As detailed in various Bitcoin Magazine pieces like “The Dangerous Implications Of Central Bank Digital Currencies,” “Central Bank Digital Currencies: A Technocratic Fallacy” and “The U.S. Central Bank Digital Currency Narrative Is A Fantasy,” the idea of a CBDC not only has moral and ideological opposition to it, but technical limitations present challenges that could make such a thing not possible in the first place.

As of right now, it is still unclear how close the US is to the development and implementation of an actual CBDC, but many believe that it would be extremely hard to rollout.

This new bill that opposes it will also likely delay it for quite a long time as the bill has been receiving a lot of support from other lawmakers.

Representative Andy Biggs from Arizona also decided to support Emmer’s new bill and it is now being reviewed to see if the bill will manage to actually pass.

One of the things that does make CBDCs unfavorable is the fact that it does limit the amount of freedom that users would have compared to using a digital asset like XRP or Bitcoin.

This is because CBDCs may not be fully decentralized despite the fact that they utilize blockchain technology.

Ultimately, it is possible that both centralized and decentralized assets may coexist in a few years time with each having their specific use cases.

The bill does three things:

1. Prohibits the Fed from issuing a CBDC directly to anyone.
2. Bars the Fed from using a CBDC to implement monetary policy and control the economy.
3. Requires the Fed's CBDC projects to be transparent to Congress and the American people

— Tom Emmer (@GOPMajorityWhip) February 22, 2023

CryptoPotato concludes:

The creation of a CBDC could have a significant impact on financial privacy. Since CBDC transactions would be recorded on a blockchain, authorities could track and trace financial transactions in real-time. This has raised concerns about data privacy and surveillance and the potential for government intrusion into financial affairs.

However, proponents argue that CBDCs could bring many benefits, including greater financial inclusion, reduced transaction costs, and faster settlement times. Additionally, CBDCs could provide an alternative to traditional banking services for people who do not have access to them.

For several years now, Emmer has been an advocate of blockchain technology and cryptocurrencies, calling for regulation that encourages innovation and growth in the sector without harming people. Emmer is known for its efforts to boost crypto adoption and promote the growth of the industry.

He has been in favor of receiving part of his payment in crypto and has also expressed his concerns about the way the government handled the arrest of Sam Bankman-Fried. Coinbase has his name on the list of politicians who are “very supportive” of crypto.

Stopping a U.S CBDC would be a major blow to the Great Resethttps://t.co/KkFxHPCeGk

— Patrick Wood (@StopTechnocracy) February 23, 2023

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