U.S. House Majority Whip Tom Emmer and Rep. Bryan Steil are leading a group of nearly 100 Republicans to introduce new legislation aimed at banning central bank digital currency (CBDC) in the United States. They argue that a government-issued CBDC could lead to unwanted surveillance and threaten Americans’ privacy rights. Emmer emphasizes the need for this legislation to solidify President Trump’s Executive Order against CBDCs, preventing future administrations from misusing this technology. The proposed law, known as the Anti-CBDC Surveillance State Act, would ensure the Federal Reserve cannot issue CBDCs directly to people, thus safeguarding financial independence and privacy for all Americans.
U.S. Lawmakers Propose Bill to Ban Central Bank Digital Currency
On March 6, U.S. House Majority Whip Tom Emmer (R-MN) and U.S. Rep. Bryan Steil (R-WI) joined nearly 100 Republican colleagues in introducing a new bill aimed at banning the use of central bank digital currency (CBDC) in the United States. The Anti-CBDC Surveillance State Act, also known as H.R. 1919, seeks to prevent federal reserve banks from directly offering CBDC products or services to individuals.
Rep. Emmer believes that a government-issued CBDC, if not designed to be open and private like cash, could become a tool for government surveillance. "This could erode the American way of life," he stated. He further emphasized that President Trump had already issued an Executive Order against exploring CBDCs, and now it is crucial to put this prohibition into law to protect Americans from potential overreach by future administrations.
What is a CBDC?
Unlike decentralized cryptocurrencies like Bitcoin, a CBDC represents a digital form of currency that is issued and governed by a government. This digital currency operates on a ledger controlled by that government, raising concerns about privacy and financial freedom.
The proposed legislation specifically prohibits unelected officials from issuing CBDCs that may undermine Americans’ privacy rights. "Financial privacy and independence are the foundations of our financial system," commented Rep. Steil, one of the original cosponsors of the bill.
Key Features of H.R. 1919
The Anti-CBDC Surveillance State Act has several important provisions:
- It prevents the Federal Reserve from issuing a CBDC directly to individuals.
- It prohibits the Fed from using a CBDC as a means to implement monetary policy.
- The bill ensures that the U.S. Treasury Department cannot instruct the Fed to design or issue a CBDC without explicit congressional approval.
As discussions around CBDCs continue, lawmakers are emphasizing the importance of safeguarding financial privacy and protecting Americans from potential government overreach. With nearly 100 supporters backing this bill, the debate on the future of digital currency in the U.S. is just getting started.
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Tags: CBDC, Central Bank Digital Currency, Financial Privacy, U.S. Legislation, Digital Currency
What is the bill about?
Emmer and Steil joined their Republican colleagues to propose a bill that aims to stop the creation of central bank digital currencies (CBDCs) in the U.S.
Why do they want to stop CBDCs?
They are concerned that central bank digital currencies could invade people’s privacy and give the government too much control over personal finances.
What could be the impact of banning CBDCs?
If this bill is passed, it would prevent the U.S. government from creating a digital version of the dollar, keeping the existing banking system in place.
Are there any benefits to CBDCs?
Some believe CBDCs could make payments faster and cheaper, but opponents fear the risks to privacy and freedom outweigh the benefits.
What’s next for this bill?
The bill will go through discussions in Congress. If it gains enough support, it might become law, but it will take time to see the final outcome.
