US lawmaker Tom Emmer said the recent moves of the Federal Reserves suggest that the government will introduce a central bank digital currency (CBDC).
The lawmaker made this statement at a CATO Institute event while answering questions on whether the Fed will issue a CBDC. The financial authority previously said it could not make such a move without the approval of the U.S. Congress.
However, the Majority Whip pointed out that the agency’s recent actions showed that the administration wants to issue a digital dollar. According to Emmer, a recent document from the Feds included CBDC as one of its responsibilities.
In his view, Central Banks around the world missed out on crypto because they did not expect it to grow beyond the concept of virtual money. But with the space gaining traction and enjoying more adoption, the regulators and bureaucrats want to bring it under their control since they cannot shut it down.
Emmer warned that the CBDC could be used as a financial control tool, the same way China uses its Digital Yuan. “This Administration is already moving in the direction of a CBDC, and the events of this week have only made that more clear,” he added.
Meanwhile, this is not the first time that Emmer would criticize the Fed and accuse the US government of trying to sabotage the crypto industry. On March 16, he accused the Biden administration of weaponizing the recent market chaos to kill crypto. He has also sponsored an anti-CBDC bill to help Americans maintain financial freedom.
Is the Federal Reserve Planning to Launch a CBDC?
While the Fed has not decided on CBDC, several pro-CBDC moves are already happening, with some major banks like the Bank of America saying the digital currency is a “natural evolution of today’s monetary and payment systems.”
Besides that, the Federal Reserve recently announced the launch of its FedNow Service, which would allow instant and 24/7 payments for banks. The service is scheduled for rollout in mid-2023, and some believe it could lay the groundwork for a CBDC.
Meanwhile, those in opposition to CBDCs are not relenting. Earlier this month, the governor of South Dakota, Kristi Noem, vetoed a bill that includes CBDC in the definition of money. The governor added that the bill opens the door for future federal government overreach.
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This past week saw a surge of events that demonstrate that the Biden Administration is taking a strong stance in support of Central Bank Digital Currencies (CBDCs). Congressman Tom Emmer made this announcement at the Money20/20 conference, where he discussed the various ways the Administration is pushing ahead with the development of CBDCs.
He stated that the worldwide economy is changing and advancing into the future, and that the United States must also keep up with the pace of technological development and growth. According to him, technological innovation is essential in order to remain competitive in many sectors and industries.
Congressman Emmer went on to mention some of the recent events that show the Biden Administration is serious about researching and eventually creating its own CBDC. Earlier in the week, the House Appropriations Committee approved the modernization of the Treasury Department’s core systems, with the purpose of developing CBDCs.
Furthermore, the White House recently formed the interagency Working Group that will evaluate CBDCs and the impact they can have on the US payments system. Not just that, but the Department of the Treasury has established a dedicated division to specifically look into CBDCs.
Lastly, the Office of the Comptroller of the Currency has requested public comments on the potential effects of private-sector banking adoption of CBDCs. This shows that the Office is also taking CBDCs seriously and is looking for ways to incorporate them into the larger banking system.
Congressman Emmer concluded his speech by stressing the importance of the Biden Administration’s actions. He believes that these moves will eventually lead to the greater adoption of innovative technologies in the banking industry. He also stated that if the US does not implement a CBDC, it will fall behind in terms of its banking system compared to countries such as China that are actively researching and implementing them.
In light of these events, it appears that the Biden Administration’s commitment to CBDCs is clear and determined. If their strategy succeeds, we could expect to see US banks begin to adopt digital currencies in the near future.