- Anti-CBDC Bill clears House Financial Services Committee, steps closer to congressional vote.
- Representative Tom Emmer champions the cause of decentralized cryptocurrencies, emphasizes on preserving financial freedom and privacy against potential government surveillance through CBDCs.
Referring to a tweet by Eleanor Terrett, it has been reported that the Anti-CBDC Bill, advocated by Representative Tom Emmer, has recently navigated through the House Financial Services Committee. This progression heralds a strong sentiment in Congress against the launch of a government-controlled Central Bank Digital Currency (CBDC).
— Eleanor Terrett (@EleanorTerrett) September 20, 2023
This legislative advance is considered a victory for decentralized cryptocurrencies like Bitcoin and Ripple (XRP). Emmer, known for his pro-decentralization stance, celebrated this movement as a stride towards financial freedom away from government surveillance. The bill already holds the endorsement from 60 congressional members, reflecting a notable support towards preventing a state-controlled digital currency which might echo surveillance concerns.
Concerns Over Financial Surveillance
The crux of the bill is to thwart any attempt by the Federal Reserve and its member banks from issuing a CBDC that could potentially morph into a financial surveillance tool. Emmer pointed out the stark contrast between decentralized cryptocurrencies and CBDCs. The former symbolizes a form of financial freedom and privacy, while the latter could be perceived as a government’s mechanism to keep tabs on citizens’ financial transactions. Drawing a parallel, Emmer cited China’s utilization of CBDCs to monitor user spending habits for a social credit system, a scenario he stresses the United States should steer clear from.
Privacy-Centric Digital Economy
Emmer further elucidated that the proposed bill aims to cement the principles of privacy, individual sovereignty, and free market competitiveness, resonating with the core American values. In a global digital economy landscape, he emphasized the importance of these principles, asserting that a CBDC lacking these attributes would only serve as a surveillance tool mirroring those in authoritarian regimes.
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According to Bitcoinist, the revised version of the bill has introduced two significant alterations; it firstly delineates the notion of “intermediated CBDCs,” disallowing the Federal Reserve from outsourcing the management of CBDCs to retail banks or other financial institutions. Secondly, it has expunged the mandate for the Federal Reserve to report any CBDC pilot programs or studies to Congress.
With bipartisan backing and a vision to conserve American values and privacy, this legislative movement is a cornerstone in the discussions around the prospective issuance of a central bank digital currency in the United States, paving the path for more robust deliberations on the nation’s digital currency future.