To prevent the creation or use of a central bank digital currency; (CBDC) to direct the Federal Reserve’s monetary policy, Tom Emmer filed a measure on February 22.
Emmer explained three aspects of the law’s intensification in a tweet on February 22; “Today, I enacted the CBDC AntiSurveillance State Act to restrict the operations of unelected bureaucrats in Washington DC to take their financial privacy rights from Americans.”
“Fed’s CBDC Programs Must be Fully Transparent”
The statements include the prohibition of the Fed from issuing CBDCs directly to individuals; preventing the Fed from utilizing; CBDCs to implement monetary policy and manage the economy, and requiring that the Fed’s CBDC programs be fully transparent to Congress and the general public.
The document specifies that the Fed should be contacted and that any work on implementing US digital currency or possible CBDC pilot projects should be reported to Congress on a quarterly basis.
Emmer cautioned that he thought it may be possible to develop a monitoring tool and stated that digital dollars should “promote our American principles.” Several individuals voiced fear that CBDCs would violate people’s basic rights and privacy; while giving the government enormous control and authority.
A Financial Monitoring Tool or an Innovation?
A law Tom Emmer had proposed in January prohibiting the; Federal Reserve from creating a direct-to-consumer CBDC “which the federal government may utilize as a financial monitoring tool; similar to what is happening currently in China” was passed by US Senator Ted Cruz in March 2022.
Later in December, Emmer revealed that it has begun looking at “Project Hamilton,” a joint venture between the Massachusetts Institute of Technology’s Digital Currency Initiative. And the Federal Reserve Bank of Boston that is looking towards the creation of a US CBDC. “As we learn about the Boston Fed’s work on the Hamilton Project, our concerns about the lack of transparency grow; especially when it comes to partnerships with the private sector,” Emmer said.
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