CBDC Resistance: GOP Proposal Directly Challenges Federal Reserve’s Digital Dollar Initiative

According to a recent report by Fox Business, House Majority Whip Tom Emmer is set to reintroduce the Central Bank Digital Currency Anti-Surveillance State Act. The Republican-backed bill aims to counter the growing momentum behind Central Bank digital currency (CBDC) by thwarting the Federal Reserve (Fed) and its member banks from issuing a digital version of the US dollar.

The interest in digitalizing fiat currencies has surged globally, with as many as 130 countries, accounting for 98% of the global economy, exploring the possibility of digitalizing their currencies. While 11 nations, including China, have already fully implemented CBDCs, controversy surrounds CBDCs among cryptocurrency enthusiasts and conservatives.

The Biden administration has stated that it has no plans to issue a digital version of the US dollar. However, GOP lawmakers remain skeptical due to the Federal Reserve’s initial steps in researching and piloting CBDC implementation. CBDCs have also become a talking point among Republican presidential candidates for the 2024 elections, as well as Democratic presidential hopeful Robert F. Kennedy Jr., who has condemned them as “instruments of control and oppression.”

Emmer’s reintroduced legislation incorporates two significant changes. Firstly, it prohibits “intermediated CBDCs,” which are CBDCs managed by retail banks and other financial institutions instead of directly controlled by the Federal Reserve, resembling China’s model for its digital yuan. Secondly, the new version removes the requirement for the Fed to report any CBDC pilot programs or studies to Congress, with those matters being addressed in separate bills.

Similar anti-CBDC legislation has been introduced in the Senate, including the No CBDC Act and a bill by Ted Cruz, both aiming to prevent the Federal Reserve from directly issuing CBDCs to individuals. However, given the Democrats’ control over the Senate and the White House, the chances of any anti-CBDC legislation passing this year appear slim. Nevertheless, Emmer’s supporters hope the bill will raise public awareness of the potential drawbacks associated with CBDCs.

Emmer emphasizes the importance of the legislation in curbing the power of unelected bureaucrats and ensuring that US digital currency policy upholds values such as privacy, individual sovereignty, and free-market competitiveness.

The reintroduced bill coincides with a scheduled House Financial Services subcommittee hearing on CBDCs later this week.

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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