Rep. Tom Emmer, R-Minn., has proposed a bill that would prohibit the Federal Reserve from directly issuing central bank digital currencies to individuals as part of efforts to safeguard financial privacy, promote innovation and maintain the dollar’s dominance.
“CBDCs that fail to adhere to these three basic principles could enable an entity like the Federal Reserve to mobilize itself into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely,” Emmer said in a statement published Jan. 12th. He noted that the Federal Reserve should not have the authority to issue retail bank accounts.
“This means that any digital dollar must be accessible to all, transact on a blockchain that is transparent to all, and maintain the privacy elements of cash,” Emmer added.
In 2021, the Federal Reserve announced its intent to assess the potential risks and benefits of issuing a digital currency and come up with a report that includes the proposed CBDC design. The agency has yet to present the report.
On Jan. 27, the Potomac Officers Club will bring together distinguished government and industry leaders to discuss the national security aspect of digital currencies. National Cyber Director Chris Inglis will deliver the keynote speech at POC’s Digital Currency and National Security Forum.