US lawmakers propose banning the Fed from opening retail accounts for a CBDC

Representative Tom Emmer introduced a bill prohibiting the Fed from offering a central bank digital currency directly to individuals.

Today, I introduced a bill prohibiting the Fed from issuing a central bank digital currency directly to individuals. Here’s why it matters: pic.twitter.com/S7pQ5rVc6n

— Tom Emmer (@RepTomEmmer) January 12, 2022

Emmer proposed amending the law ‘The Federal Reserve Act’:

«Except as specifically provided by this Act, the Federal Reserve Bank may not directly offer products and services to an individual, maintain an account on behalf of an individual, or issue a CBDC directly to an individual».

According to the congressman, requiring citizens to open Fed accounts to access the digital currency would put regulators on a slippery slope reminiscent of China’s digital authoritarianism.

Any CBDC implemented by the Fed must be open, permissionless, and private. 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.

— Tom Emmer (@RepTomEmmer) January 12, 2022

«Any CBDC implemented by the Fed must be open, private, and accessible to all. This means that digital dollar transactions must occur on a transparent blockchain, preserve the privacy elements of cash, and be accessible to everyone», — Emmer stressed.

He also warned about the risk of using Americans’ personal data for mass surveillance, cybersecurity concerns, and the fact that the agency “has no such powers and should not have them”.

The bill currently has no co-sponsors. In the House, the Republican Party, to which Emmer belongs, is in the minority.

Earlier, Fed Chair Jerome Powell promised in the coming weeks to present a report on the digital dollar. The head of the monetary authorities warned that the document is not meant to be exhaustive, but rather a warm-up in shaping questions for the public.

Back in June 2021, Emmer urged excluding from the design of the digital dollar the ability to monitor citizens, to avoid placing the United States in the same league as China’s digital authoritarianism.

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