Congressman Tom Emmer of the United States has filed a measure to prevent the Federal Reserve (the Fed) from launching a central bank digital currency (CBDC).
The ‘CBDC Anti-Surveillance State Act strives to safeguard the financial privacy of American residents. Emmer said in a February 222 tweet.
“Any digital dollar must maintain American ideals of privacy, individual sovereignty, and free market competition. Anything less opens the door to the creation of a harmful monitoring instrument, according to Emmer.”
The measure attempts to prohibit the Federal Reserve from producing digital dollars and from using CBDCs to undertake monetary policy and regulate the economy.
In addition, if the measure becomes law, the House Majority Whip said that the Fed should be open with Congress about its CBDC initiative. Regarding pilot initiatives, the measure mandates that the Federal Reserve provide quarterly updates to Congress.
The congressman said that the law contributes to retaining America’s technological leadership. “In the end, the United States remains a technical leader not because we push inventions to embrace our values via legislative compulsion, but rather because we let technology with these ideals at its heart to thrive,” he said.
In fact, if the law passes, it would diminish the United States’ aspirations of implementing a CBDC, which has dominated the discussion on crypto rules. Interestingly, the Fed has not clarified its intentions surrounding the introduction of CBDCs, but industry participants perceive it as a perfect countermeasure to the rise of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
Jerome Powell, chairman of the Federal Reserve, indicated that a CBDC tied to the U.S. dollar would greatly maintain the dollar’s worldwide supremacy. In general, a rising number of worldwide countries are doing research on CBDCs.
The Federal Reserve Bank of San Francisco has offered a job for software developers to assist with the study and design of a CBDC.
Also Read: Mastercard Will Enable Cryptocurrency Transactions Via Web3 Through USDC Settlements
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