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Rep. Tom Emmer says the Federal Reserve has made CBDCs a key duty

Rep. Tom Emmer says the Federal Reserve has made CBDCs a key duty

The BlockThe Block2024/03/14 18:28
By:The Block

Quick Take In a presentation to Emmer’s staff, the Minnesota Republican says, the central bank lists key duties for payment systems, including currency and the FedNow program — and at the bottom of the list are CBDCs. This comes as Fed Chair Jerome Powell told the Senate Banking Committee last week that the central bank was “nowhere near” making a recommendation or adopting a CBDC.

Rep. Tom Emmer says the Federal Reserve has made CBDCs a key duty image 0

The Federal Reserve has its eyes set on a central bank digital currency and has marked it as one of its "key duties," according to Republican Majority Whip Tom Emmer. 

In a presentation given to Emmer's staff "earlier this Congress," the central bank listed essential duties for payment systems, including currency and the FedNow program — and at the bottom of the list are CBDCs, according to a photo Emmer posted on X on Wednesday. 

"If you don’t think the Fed is pursuing a CBDC, think again," the Minnesota Republican posted on X. "The Fed gave this to my staff during a presentation earlier this Congress. They view a CBDC as one of their KEY DUTIES."

When reached by The Block, a spokesperson for The Federal Reserve declined to comment on Emmer's remarks.

Republicans' criticism of a CBDC

Republicans have voiced concerns that a CBDC could open the door for government surveillance of peoples' transactions. Emmer has advocated for his "CBDC Anti-Surveillance State Act," which would prohibit the central bank from issuing a CBDC directly to individuals and block the Fed from indirectly issuing one through an intermediary. That bill was advanced out of the House Financial Services Committee last year and would still need a full House vote before moving onto the Senate. 

According to the Atlantic Council, 134 countries, representing 98 percent of global GDP, are exploring a CBDC in some way. Other jurisdictions, including Europe and Brazil, have entered the pilot stage for a CBDC over the past year. 

Fed Chair Jerome Powell told lawmakers last week in the Senate Banking Committee that the central bank was "nowhere near" making a recommendation or adopting a CBDC. The Federal Reserve has been exploring the possibility of issuing a CBDC and released a report last year examining its pros and cons. 


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