Fifty-four Republicans are cosponsoring legislation unveiled on Sept. 12 by Majority Whip Tom Emmer (R-MN) that aims to prevent the federal government from issuing a central bank digital currency (CBDC) that violates Americans’ privacy rights.
“If not designed to be open, permissionless, and private – emulating cash – a government-issued CBDC is nothing more than a CCP [Chinese Communist Party]-style surveillance tool that would be used to undermine the American way of life,” Rep. Emmer said on Tuesday.
The congressman sponsored the CBDC Anti-Surveillance State Act, H.R. 5403, with 52 GOP original cosponsors, including lead original cosponsor U.S. Rep. Don Bacon (R-NE).
Specifically, H.R. 5403 would prohibit the Federal Reserve from issuing a CBDC directly to individuals to ensure the Fed cannot act as a retail bank to collect personal financial data on Americans, according to a bill summary provided by Rep. Emmer’s staff.
The legislation also would prohibit the Fed from indirectly issuing a CBDC to individuals through an intermediary to prevent the Fed from launching a retail CBDC through the nation’s two-tier financial system, the summary says.
Additionally, the bill would prohibit the Fed from using any CBDC to implement monetary policy to ensure the Federal Reserve cannot use a CBDC as a tool to control the American economy, states the summary.
“The administration has made it clear: President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC,” said Rep. Emmer. “That’s why I’m reintroducing my landmark legislation to put a check on unelected bureaucrats and ensure the United States’ digital currency policy upholds our values of privacy, individual sovereignty, and free-market competitiveness.”
Heritage Action and the Club for Growth endorsed H.R. 5403, which has been referred for consideration to the U.S. House Financial Services Committee.
Rep. Emmer first introduced the bill in January 2022.