U.S. lawmakers introduce bill to bar the Federal Reserve from issuing digital currency directly to individuals

U.S. Congressman Tom Emmer will propose a bill to prohibit the Federal Reserve from directly issuing central bank digital currency (CBDC) to individuals. Tom Emmer emphasized that U.S. digital currency policy must protect financial privacy, maintain the dominance of the dollar, and foster innovation.

Otherwise, the Fed could "mobilize to become a retail bank, collecting personally identifiable information on users and tracking their transactions indefinitely.

Not only would this CBDC model centralize Americans’ financial information, making them vulnerable, but it could also be used as a surveillance tool that Americans should never tolerate from their own governments.

Any CBDC implemented by the Fed must be open, permissionless and private”. Tom Emmer concluded that in order to maintain the dollar’s status as the world’s reserve currency in the digital age, the United States must lead with a posture that prioritizes innovation, while Not for the purpose of competing with the private sector.