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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