EDITOR'S NOTE: We applaud Congressman Tom Emmer (MN-06) for pushing forward a bill prohibiting the Fed to issue central bank digital currencies (CBDC) directly to individuals. “What’s at stake?” some of you may be wondering. Unlike cash or private crypto, CBDCs are a tool for authoritarian control. They can be used to surveil, monitor, and record Americans’ financial activities. They would render commercial banking useless, dismantling an industry that, despite its problems, still respects the principle of customer privacy and protection. Not only would CBDCs allow the Fed to print money at will, but such a system would also allow the Fed to control American consumption by implementing negative interest rates. As Emmer points out, CBDCs would give the government and the Fed a level of power that would force American wealth into near-absolute submission. But as Mish asks below, does his bill go far enough to help prevent us from going down the bleak path toward which we seem to be heading?
Representative Tom Emmer has a good idea but his bill needs at least two more items.
Tweet Thread of the of the Day
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
1: Today, I introduced a bill prohibiting the Fed from issuing a central bank digital currency directly to individuals. Here’s why it matters:
2: As other countries, like China, develop CBDCs that fundamentally omit the benefits and protections of cash, it is more important than ever to ensure the United States’ digital currency policy protects financial privacy, maintains the dollar’s dominance, and cultivates innovation.
3: 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.