By Nermeen Nabil Khear 
Key Takeaways:
- Critics warn that government-controlled digital money might erode privacy safeguards.
- Some favor private-sector models to support less intrusive digital payments.
- New proposals seek to curb state influence over payment systems.
- The discussion fuels broader efforts to refresh digital finance regulations.
House Majority Whip Tom Emmer (R-MN) criticized central bank digital currencies (CBDCs) during a House Financial Services Committee hearing on March 11, arguing that they pose a threat to Americans’ financial privacy.
Rep. Tom Emmer Takes Swipe At CBDCs
During “Navigating the Digital Payments Ecosystem: Examining a Federal Framework for Payment Stablecoins and Consequences of a U.S. CBDC,” Emmer claimed that the risks of a CBDC would undermine Americans’ privacy.
“CBDCs introduce significant privacy risks and are fundamentally the antithesis of American values,” Emmer said.
His criticism of CBDCs came as lawmakers debated the regulatory future of digital payments, including stablecoins.
The hearing largely centered around the STABLE Act, legislation introduced by Representative Bryan Steil (R-WI) and committee chairman French Hill (R-AR), which aims to establish clear regulations for stablecoins in the United States.
“On the other hand, this stablecoin bill can bring traditional finance on-chain at a global scale while preserving privacy, individual sovereignty, and free market competitiveness,” Emmer added. “This underscores why we must prioritize pro-stablecoin legislation alongside anti-CBDC legislation.”
Congress Debates CBDCs and Stablecoin Regulation
News of the hearing comes just one week after Emmer reintroduced his Anti-CBDC Surveillance State Act which would prevent the federal government from directly issuing a CBDC to individuals.
In a March 6 press release, Emmer argued that allowing the government to issue a CBDC would be unethical, as it would give authorities the ability to collect personal financial data from Americans.
“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.
Meanwhile, the Senate Banking Committee is set to vote on Senator Bill Hagerty’s (R-TN) GENIUS Act on Thursday, a bill that seeks to establish a regulatory framework for payment stablecoins.
The debate over stablecoin regulation continues as lawmakers consider how digital assets, including CBDCs, fit into the broader financial system.
The extent of federal regulatory power over digital assets remains a key issue in ongoing legislative discussions, with lawmakers divided over how much oversight should be imposed on emerging financial technologies.
He argues that CBDCs could allow excessive government surveillance and undermine privacy and personal freedom, which he believes contradicts American values.
He has introduced legislation, such as the “CBDC Anti-Surveillance State Act,” aimed at preventing the Fed from issuing a CBDC.
U.S. President Donald Trump signed an executive order this past January that would prohibit the creation of a CBDC, though lawmakers seek to formalize his vision in Congress.
The post Rep. Tom Emmer Asserts CBDC Technology Is “Inherently Un-American” appeared first on Cryptonews.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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