In the United States House Financial Services Committee, Republican members have created significant tension among Democrats by introducing a bill that would prevent the Federal Reserve from directly providing a potential central bank digital currency (CBDC) to individuals.
Some members had argued that the bill was foolish; however, the bill has passed the Financial Services Committee and is now expected to go through some Senate processes before becoming law.
Blocking Direct Distribution of CBDC to U.S. Citizens
Representative Tom Emmer, R-Minn, introduced the “CBDC Oversight Prevention State Act” last week (HR 5403). The aim of this bill is to prevent the Federal Reserve from distributing a central bank digital currency (CBDC) directly to American citizens and to prohibit its indirect distribution.
However, Emmer expressed his pride in having this bill, which he has been working on for at least three years, saying, “I am extremely proud to have this bill that I have been working on for at least three years now.”
“In short, a central bank digital currency, unless designed to mimic cash, is a government-controlled programmable currency that could give the federal government the ability to monitor and restrict Americans’ transactions. This is not only concerning but also fundamentally un-American.”Tom Emmer
Growing Controversy Over the Bill
However, the bill has sparked strong opposition among Democrats. Democratic members argue that CBDC could potentially bring more privacy and security to Americans’ financial transactions and criticized Emmer’s bill.
“We are at a turning point right now, but this bill will leave the United States out of the game.”Representative Stephen Lynch, D-Mass
Source: The Block