House Majority Whip Tom Emmer (R-Minn.) reintroduced legislation on March 6 to prevent the federal government from issuing a central bank digital currency (CBDC), arguing that such a system could threaten Americans’ financial privacy and empower government overreach.
The Anti-CBDC Surveillance State Act seeks to explicitly ban the Federal Reserve from developing, issuing, or implementing a digital dollar, prohibiting the central bank from distributing a CBDC either directly to individuals or indirectly through financial intermediaries.
The bill further prevents the Fed from using any form of CBDC to influence monetary policy, curtail financial activities, or track individual transactions.
Additionally, it blocks the Treasury Department from directing the Fed to create a digital dollar, ensuring that any future development of a government-controlled digital currency would require explicit congressional approval.
Emmer, who has positioned himself as a leading opponent of CBDCs, said that if not properly designed, such a system could function as a financial surveillance tool that undermines the freedoms associated with cash transactions.
Emmer said in a statement:
“If not designed to be open, permissionless, and private — resembling cash — a government-issued CBDC is nothing more than an Orwellian surveillance tool that would be used to erode the American way of life.”
The Minnesota Republican also highlighted former President Donald Trump’s executive order prohibiting federal agencies from exploring a CBDC. While that directive remains in place, Emmer said legislative action was necessary to prevent future administrations from reversing course and weaponizing the technology against Americans.
Political divide over CBDCs
The bill, which has 100 Republican co-sponsors, reflects mounting conservative opposition to a government-backed digital currency.
Critics argue that a CBDC could allow federal agencies to monitor spending habits, freeze assets, or restrict transactions based on political or social considerations. Emmer and other opponents have pointed to China’s rollout of its digital yuan as an example of how a CBDC could be used to control financial behavior.
However, supporters of CBDCs, including some policymakers at the Federal Reserve, have argued that a digital dollar could improve payment efficiency, enhance financial inclusion, and ensure the US dollar remains competitive in an increasingly digital global economy.
Proponents also say that without a government-issued digital currency, private-sector stablecoins and foreign CBDCs — such as China’s digital yuan — could undermine US financial dominance.
Federal Reserve Chair Jerome Powell has stated that the central bank would not move forward with a digital dollar without congressional approval. However, the Fed has continued to research and evaluate the implications of a CBDC, a process that has fueled skepticism among Republicans.
This is not the first time Emmer has sought to block a CBDC. He initially introduced the bill in January 2022 and has since made it a cornerstone of his legislative agenda. In the previous Congress, a similar measure passed the Republican-controlled House but stalled in the Senate.
With Democrats holding a slim majority in the Senate and the Biden administration not signaling support for an outright ban, the bill’s path forward remains uncertain. However, its reintroduction signals that CBDC opposition will remain a key issue for Republicans heading into the 2024 election cycle and beyond.
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