According to a recent Fox Business report, House Majority Whip Tom Emmer is set to reintroduce the Central Bank Digital Currency Anti-Surveillance State Act as a countermeasure to the growing momentum behind Central Bank digital currencies (CBDCs). The Republican-backed bill aims to prevent the Federal Reserve (Fed) and its member banks from issuing a digital version of the US dollar and leveraging it for monetary policy implementation.

The global interest in digitalizing fiat currencies has seen a surge, with approximately 130 countries, accounting for 98% of the global economy, exploring the possibility of launching their CBDCs. Notably, 11 nations, including China, have already fully implemented CBDCs. However, the implementation of CBDCs has sparked debates among cryptocurrency enthusiasts and conservatives, despite falling under the broader category of digital assets.

While President Biden’s administration has no plans to issue a digital version of the US dollar, GOP lawmakers remain skeptical due to the Federal Reserve’s initial steps in researching and piloting CBDCs. The issue of CBDCs has also become a talking point among potential presidential candidates for the 2024 elections, including Ron DeSantis, Vivek Ramaswamy, and even Democratic hopeful Robert F. Kennedy Jr., who branded CBDCs as “instruments of control and oppression.”

Emmer’s reintroduced legislation, co-sponsored by 49 congressional Republicans, is an updated version of the bill he introduced earlier this year, reflecting the evolving digital asset policy landscape. The new bill introduces two significant changes from its original text.

Firstly, it prohibits the issuance of “intermediated CBDCs,” which refers to CBDCs issued by the Federal Reserve but managed by retail banks and other financial institutions rather than being directly controlled by the Fed. This model resembles China’s digital yuan implementation.

Secondly, the new version removes the requirement for the Fed to report any CBDC pilot programs or studies to Congress, as these matters will be addressed in separate bills such as Rep. Alex Mooney’s Digital Dollar Pilot Prevention Act.

Similar anti-CBDC legislation has also been introduced in the Senate, including the No CBDC Act by Mike Lee and a bill by Ted Cruz aimed at preventing the Federal Reserve from issuing CBDCs directly to individuals. However, given the Democrats’ control over the Senate and the White House, the chances of such legislation passing this year appear slim. Nonetheless, Emmer’s supporters hope that the bill will raise public awareness regarding the potential drawbacks associated with CBDCs.

Emmer expressed his concerns about the Biden administration’s stance, arguing that it compromises the financial privacy rights of Americans in favor of a surveillance-style CBDC. He emphasized the vital role of this legislation in curbing the power of unelected bureaucrats and ensuring that US digital currency policies uphold values such as privacy, individual sovereignty, and free-market competitiveness.

As the bill is reintroduced, a House Financial Services subcommittee hearing on CBDCs is scheduled for later this week, further highlighting the ongoing debate and exploration of CBDCs.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.