Tom Emmer had previously preferred a decentralized digital currency as it would protect user privacy and maintain the elements of cash.
The US MP for the 6th state of Minnesota, Tom Emmer, revealed yesterday that he wants to introduce new regulations around crypto. Emmer's bill, which had pointed out the day before , would ban the Federal Reserve from any activity as a retail ban.
In fact, it would prevent the Fed from issuing central bank digital currency directly to US consumers. He insisted that unlike other countries like China, which have developed tokens that lack the " benefits and protection of cash" , a digital US currency should guarantee users privacy and maintain the hegemonic status of the US dollar .
Focus on data protection, innovation and the dominance of the dollar
Emmer went on to explain that CBDCs not built with these pillars in mind would make user privacy vulnerable. In this way, an institution like the Fed could merge into a retail bank and easily collect personal information. He warned that such a body could also track user transactions for an indefinite period of time.
"Not only would this CBDC model centralize Americans' financial information, making it vulnerable to attack, but it could also be used as a surveillance tool that Americans should never tolerate from their own government," said Emer.
The Minnesota official warned that the US would be on a path to mimicking "China's digital authoritarianism" if the Fed required users to open an account to access a CBDC.
He also pointed out that it was imperative that the Fed should not be allowed to offer retail banking, adding that the minimum requirements for any CBDC developed in the US would be openness, privacy and permission-free nature.
“Regardless, any CBDC implemented by the Fed must be open, license-free, and private. This means that every digital dollar has to be accessible to everyone, has to process transactions via a blockchain that is transparent for all and has to protect the data protection elements of cash, ” said Emmer.
He also claimed that in order to preserve the dollar's status in the digital age, the US must ensure it has an approach that prioritizes innovation rather than competition with the private sector (other cryptocurrencies).
In particular, although the text in his bill was quite brief, it was suggested that the amendment to Section 13 of the Federal Reserve Act include a clause that reads:
" Except as expressly authorized under this Act, a Federal Reserve Bank shall not directly offer any product or service to any person, hold an account on any person's behalf, or issue central bank digital currency directly to any person."
The post Therefore, Tom Emmer considers the Fed unsuitable to issue a CBDC appeared first on BitcoinMag.de .