Washington, D.C. - Today, Congressman and Majority Whip Tom Emmer (MN-06) reintroduced his flagship legislation, the Anti-CBDC Surveillance State Act, to prevent unelected bureaucrats in Washington, D.C., from issuing a central bank digital currency (CBDC) that would undermine Americans’ privacy. The legislation is supported by 100 original Republican cosponsors.

“If not designed to be open, permissionless, and private – resembling cash – a government-issued CBDC is nothing more than an Orwellian surveillance tool that would be used to erode the American way of life,” Congressman Emmer said.

“President Trump understands the dangers CBDCs present and has already issued an executive order prohibiting federal agencies from exploring one. Now, we must codify this executive order in law and permanently ban their development so a future administration cannot weaponize this technology against Americans,” Congressman Emmer concluded.

Background:
Unlike decentralized cryptocurrencies, a CBDC is a digital form of sovereign currency that is designed and issued by a government and transacts on a digital ledger that that government controls. In short, a CBDC is a government-controlled programmable money that, if designed without the privacy protections of cash, could give the federal government the ability to surveil Americans’ transactions and choke out politically unpopular activity.

Specifically, the Anti-CBDC Surveillance State Act prevents the Federal Reserve from issuing a CBDC directly to individuals, ensuring the Fed cannot mobilize itself into a retail bank with the ability to collect personal financial data on Americans. It prohibits the Fed from indirectly issuing a CBDC to individuals through an intermediary or third party. It prevents the Fed from using any form of CBDC as a tool to implement monetary policy. The bill also ensures the Treasury Department cannot direct the Federal Reserve Bank to design, build, develop, establish, or issue a CBDC and requires explicit Congressional authorization to issue any CBDC. Finally, the bill protects innovation that reflects American values.

Congressman Emmer first introduced the leading Republican bill to ban CBDCs in January of 2022. The legislation passed the U.S. House of Representatives in the 118th Congress.

You can read the bill in its entirety here.

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