Majority Whip Tom Emmer, has reintroduced the Anti-CBDC Surveillance State Act. Backed by 100 original Republican cosponsors, this legislation aims to prevent the federal government from issuing a central bank digital currency (CBDC), which critics argue could serve as a tool for government surveillance and financial control.

The Threat of a Government-Issued Digital Currency

Emmer has long warned about the dangers posed by a government-controlled CBDC, which, if not designed with privacy safeguards, could allow the federal government to monitor and restrict transactions. “If not designed to be open, permissionless, and private—resembling cash—a CBDC is nothing more than an Orwellian surveillance tool that would be used to erode the American way of life,” Emmer stated.

His bill seeks to block the Federal Reserve from issuing a CBDC directly to individuals or through intermediaries, ensuring the government cannot establish itself as a retail bank with access to citizens' financial data. The legislation also prevents the Federal Reserve from using a CBDC to implement monetary policy, effectively restricting the government’s control over digital financial transactions.

Aligning with Presidential Policy

This reintroduction follows President Trump’s executive order prohibiting federal agencies from developing or exploring a CBDC. Emmer stressed the need to enshrine this order into law, ensuring that no future administration can overturn it and use digital currency as a mechanism for control.

Unlike decentralized cryptocurrencies such as Bitcoin, which operate on independent and permissionless networks, a CBDC would be fully controlled by the government, potentially giving authorities the power to track, freeze, or even block transactions. Emmer and his supporters argue that such a system would undermine personal financial freedoms and pave the way for political or ideological censorship of economic activity.

Protecting the Foundations of Financial Independence

The Anti-CBDC Surveillance State Act sets clear boundaries by explicitly prohibiting the Treasury Department from mandating or developing a CBDC and requiring explicit congressional authorization for any future CBDC-related initiatives. These measures ensure that any attempt to introduce government-controlled digital currency would be subject to rigorous legislative oversight.

Emmer originally introduced the bill in January 2022, marking the first major Republican-led effort to counteract government intervention in digital financial systems. The legislation successfully passed the U.S. House of Representatives during the 118th Congress, and its reintroduction signals a strong, continued push by lawmakers to uphold financial independence.

As the national debate over digital currency regulations continues, Emmer’s bill stands as a crucial measure in protecting financial privacy, preventing government overreach, and maintaining the integrity of decentralized economic systems.

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