Tom Emmer, the House Majority Whip serving as the representative for Minnesota’s 6th congressional district for the last seven years, is introducing the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act to prevent the government from “violating citizens’ right to privacy” should they go in this direction.
The CBDC Anti-Surveillance State Act
In a tweet on February 22, Tom said the act would prevent what he said are “unelected bureaucrats” in Washington, the center of power in the United States, from stripping Americans of the right to financial privacy.
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
The bill will prevent the United States Federal Reserve from directly issuing anyone Central Bank Digital Currency (CBDC). Moreover, it will prevent the central bank from using CBDC to implement their monetary policy or control the economy. If this bill is enacted, it will demand all CBDC projects to be transparent to Congress, the policy-making body of the United States, and the American people.
This bill comes on the heightened crackdown, especially by the Securities and Exchange Commission (SEC) on stablecoin issuers, including Paxos, and cryptocurrency projects in the country. Crypto exchange Kraken, for example, settled with the agency after paying a $30 million disgorgement fee and promising to halt its retail staking service in the United States.
Meanwhile, Paxos, the issuer of BUSD, a stablecoin pegged to the USD, received a notification from the regulator. The SEC claims all BUSD in circulation is unregistered securities.
FED Is Undecided On The Digital Dollar
The United States is considering a CBDC, the Digital Dollar, which the Federal Reserve will mint. It is unlike Bitcoin, which runs on a trustless public network.
Even so, the central bank has not decided whether to proceed with the project and implement a CBDC that will effectively digitize the USD. However, they have been exploring the benefits and risks of the CBDC from “different angles.” As they research, the objective is to check whether this would improve what the FED says, an “already safe and efficient US domestic payments system.”
Tom Emmer is tabling this bill to prevent government excesses should the FED decide to implement a CBDC system, launching the digital dollar.
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.
Critics say CBDCs can be turned into a tool to surveil the population illegally, infringing on their privacy rights, a concern.
Nigeria has already implemented the eNaira, and several other countries, including China, are digitizing their currencies.
Feature image from Finance Magnate, Chart from TradingView