The US legislator gets a law on the way to prohibit the FED to issue digital currencies directly to individuals-regulation

Von Krypto News Österreich

The US legislator brings a law on the way to prohibit the Fed to issue digital currencies directly to individuals

A US legislator has brought in a draft law in the congress that prohibits the Federal Reserve directly out to issue a digital central bank currency (CBDC) directly to individuals. "It is important to note that the FED is not authorized and should not be authorized to offer private customer accounts," he emphasized.

Bill introduced to forbid the Fed to issue CBDC directly to consumers

The US Congressman Tom Emmer (MN-06) announced on Wednesday that he "brought in a draft law that prohibits the Federal Reserve to issue a digital central bank currency (CBDC) directly on individuals".

He explained that countries like China "develop CBDCs that basically miss the advantages and protection of cash.

In contrast, he emphasized that the US digital currency policy protects the financial privacy, maintain dominance of the dollar and promote innovations. Otherwise, the Fed could "mobilize itself to a private customer bank, collect personally identifiable information about users and pursue their transactions for an indefinite period," warned the legislator.

Emmer further warned:

This CBDC model would not only centralize the financial information of the Americans and make them susceptible to attacks, but it could also be used as a surveillance tool that the Americans should never tolerate from their own government.

"The demand that users have to open an account with the Fed to gain access to a US CBDC would bring the Fed on an insidious path that resembles the digital authoritarian," continued the congress.

rep. Emmer said:

It is important to note that the Fed is not authorized and should not be authorized to offer bank accounts for private customers.

He further emphasized that "every CBDC implemented by the Fed must be open, free of permission and private".

The Congressman concluded: "To maintain the status of the dollar as a reserve currency of the world in a digital age, it is important that the United States preliminary with an attitude that prioritizes innovations and does not aim to compete with the private sector."

In the meantime, the Federal Reserve has not published a report on its CBDC work, which it promised last year. Fed chairman Jerome Powell said at the beginning of this week that the report was published "within weeks".

Do you think that the Fed should output a CBDC directly to individuals? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.


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