Benzinga - Representative Tom Emmer (R-Minn.) on Tuesday voiced strong opposition to the potential implementation of a Central Bank Digital Currency (CBDC) in the United States without stringent Congressional oversight and adherence to fundamental American values.
What Happened: In an interview with Bloomberg, Emmer emphasized the critical need for any proposed CBDC to be open, permissionless, and private, aligning with the freedoms enjoyed by traditional cash.
Emmer’s stance comes at a time when discussions around CBDCs are intensifying globally, with countries like China already advancing their digital currency projects.
“We can’t have that in this country. That’s un-American,” Emmer said, referencing the Chinese government’s use of digital yuan as a surveillance tool, which monitors citizens’ purchases and behavior to build social scores.
The Congressman underscored the potential risks associated with a government-issued digital currency that does not protect individual privacy and freedom.
“Any digital currency issued by the government must be open, permissionless and private,” Emmer insisted. “It can’t be used like the Chinese are using the digital yuan.”
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Why It Matters: Emmer’s bill, currently on the floor, mandates that the federal government must seek authorization from Congress before creating a CBDC.
This legislation aims to ensure that any digital currency introduced will not infringe on the privacy rights of American citizens.
The bill specifies that such a currency must emulate the characteristics of cash, preserving anonymity and preventing governmental overreach.
The proposal has garnered attention amid broader regulatory debates concerning digital assets.
Emmer’s emphasis on maintaining privacy and preventing surveillance aligns with growing concerns about the balance between innovation and regulation in the digital currency space.
What’s Next: As the debate continues, industry leaders, investors, and policymakers are set to converge at Benzinga’s Future of Digital Assets event on Nov. 19.
The event will provide a platform to discuss the implications of regulatory decisions on digital assets, including the potential impact of CBDCs on the financial system.
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