Yesterday Republican Congressman Tom Emmer introduced the CBDC Anti-Surveillance State Act. Emmer said the aim is to prevent “unelected bureaucrats” from “stripping Americans of their right to financial privacy.” Most will appreciate Emmer’s objective. However, the Bill might need to be longer than three succinct pages to achieve that aim.
The document blocks the Federal Reserve from issuing a central bank digital currency (CBDC) direct to consumers or allowing individuals to hold an account directly with the central bank. That means any digital dollar would have to go via intermediaries and favors a token-based CBDC.
If the Bill was enacted, it’s still conceivable that intermediaries such as banks could be required to share personal data with the central bank. However, the Federal Reserve has stated that it aims to ensure privacy. The central bank still would likely require banks to implement anti money laundering (AML) processes for any CBDC.
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