House Majority Whip Tom Emmer (R-Minn.) introduced a bill this week to ban the Federal Reserve from directly issuing a central bank digital currency.
The bill, introduced Feb. 22, would also require the Federal Reserve Board to consult each Federal Reserve bank about the development of a CBDC study or pilot program and issue a quarterly report to Congress on their findings.
“Any digital version of the dollar must uphold our American values of privacy, individual sovereignty and free market competitiveness,” Emmer said. “Anything less opens the door to the development of a dangerous surveillance tool.”
Co-sponsors include Rep. Ralph Norman (R-S.C.), Mike Flood (R-Neb.), Young Kim (R-Calif.), Pete Sessions (R-Texas), Warren Davidson (R-Ohio); French Hill (R-Ark.), Barry Loudermilk (R-Ga.) and Byron Donalds (R-Fla.).
Emmer’s bill contrasts with the support the Biden administration has shown toward a CBDC. The administration has said a CBDC could help the United States preserve its role as a global financial leader, serve as an effective enforcer of sanctions, enable a more efficient payment system, foster tech innovation and facilitate faster cross-border transactions.
Though he has not mandated the creation of a CBDC, Biden directed the U.S. Treasury last year to lead an interagency working group to analyze the possibility in a September cryptocurrency regulatory framework.
Digital assets remain a hot topic in Washington as lawmakers and regulators consider efforts to effectively monitor and leverage digital asset technologies. The report came six months after Biden signed an executive order calling on federal agencies to evaluate cryptocurrencies and issue final reports. Biden said a CBDC could help the U.S. preserve its role as a global financial leader and serve as an effective enforcer of sanctions, enable a more efficient payment system, foster tech innovation and facilitate faster cross-border transactions.