Several lawmakers have expressed concerns about the privacy risks of the Federal Reserve issuing a central bank digital currency (CBDC). “Americans have a right to financial privacy,” one congressman said, emphasizing: “We do not need a CBDC that can track your purchases like China does with their digital yuan.” Another noted: “CBDC is to sound money what dictatorship is to freedom.”
‘Americans Have a Right to Financial Privacy’
Multiple U.S. lawmakers have warned against the issuance of a central bank digital currency (CBDC) by the Federal Reserve. Congressman French Hill (R-AR), chairman of Congress’ Digital Assets Subcommittee, wrote on social media platform X on Wednesday:
Americans have a right to financial privacy. We do not need a CBDC that can track your purchases like China does with their digital yuan.
“The authority rests with Congress, not unelected bureaucrats, to create and implement a CBDC. And that’s non-partisan,” the lawmaker stressed.
The congressman has been a vocal critic of the Federal Reserve potentially issuing a CBDC. “I understand why Americans are concerned about CBDCs and the potential for a Big-Brother-like surveillance state. I share these concerns. It is a priority of mine to make sure the federal government cannot and does not proceed with issuing a CBDC without Congressional approval,” Hill stated in October last year.
The lawmaker introduced HR 3506, the 21st Century Dollar Act, in 2021 “to make sure U.S. government has a strategy to maintain the dollar as the primary global reserve currency, with or without a CBDC,” he previously detailed on X, formerly Twitter.
Several other lawmakers have similarly warned about the risks of the Fed issuing a central bank digital currency. Congressman Patrick McHenry (R-NC) tweeted in May last year: “The Federal Reserve can’t move forward with a CBDC without authorizing legislation from Congress. Before taking action, Congress must work to understand the risks a CBDC could pose to privacy, private sector innovation, and American consumers.”
Rep. Warren Davidson (R-OH) stated on Aug. 25: “CBDC is to sound money what dictatorship is to freedom. The existence of x precludes y. Coincidentally, if you wanted to establish or enforce a dictatorship, CBDC would be the one ring to rule them all.” He previously said:
The Federal Reserve is building the financial equivalent of the Death Star. Central bank digital currency (CBDC) corrupts money into a tool for coercion & control. Congress must swiftly ban then criminalize any effort to design, build, develop, test or establish a CBDC.
Do you agree with U.S. lawmakers about the danger to privacy of the Fed issuing a CBDC? Let us know in the comments section below.