Representative Tom Emmer has a good idea but his bill needs at least two more items.
Tweet Thread of the of the Day
Today, I introduced a bill prohibiting the Fed from issuing a central bank digital currency directly to individuals. Here’s why it matters: pic.twitter.com/S7pQ5rVc6n
— Tom Emmer (@RepTomEmmer) January 12, 2022
1: Today, I introduced a bill prohibiting the Fed from issuing a central bank digital currency directly to individuals. Here’s why it matters:
2: As other countries, like China, develop CBDCs that fundamentally omit the benefits and protections of cash, it is more important than ever to ensure the United States’ digital currency policy protects financial privacy, maintains the dollar’s dominance, and cultivates innovation.
3: CBDCs that fail to adhere to these three basic principles could enable an entity like the Federal Reserve to mobilize itself into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely.
4: Not only does this CBDC model raise “single point of failure” issues, leaving Americans’ financial information vulnerable to attack, but it could be used as a surveillance tool that Americans should never be forced to tolerate from their own government.
5: Requiring users to open an account at the Fed to access a United States CBDC would put the Fed on an insidious path akin to China’s digital authoritarianism.
6: Any CBDC implemented by the Fed must be open, permissionless, and private. This means that any digital dollar must be accessible to all, transact on a blockchain that is transparent to all, and maintain the privacy elements of cash.
7: In order to maintain the dollar’s status as the world’s reserve currency in a digital age, it is important that the United States lead with a posture that prioritizes innovation and does not aim to compete with the private sector.
8: Simply put, we must prioritize blockchain technology with American characteristics, rather than mimic China’s digital authoritarianism out of fear.
Points Well Taken
Every point of Representative Tom Emmer is well stated.
Some people are too dense to understand what he is getting at.
You are handing over the future to private companies issuing dollar pegged stable coins by doing this. This will funnel money/benefits out of the hands of tax payers and into the coffers of for profit institutions.
— Prithvi (@anondeguerre) January 12, 2022
Cash is dead old man. Better buy crypto. You wouldent want to be left behind would you?
— rü$╫ ——===XRP $10+===—— (@3N0RYM) January 12, 2022
Central bank digital currencies are coming. They have benefits and drawbacks.
One drawback has already come up “free money”.
Biden’s Bank Regulatory Nominee Espouses Helicopter Money and Praises the Old USSR
Please recall my November 15 post Biden’s Bank Regulatory Nominee Espouses Helicopter Money and Praises the Old USSR
The People’s Ledger: How to Democratize Money and Finance the Economy
Click on the link and Download the report. It’s a doozie. Straight out of the Marxist handbook.
She proposes ending banks and giving everyone a direct account at the Fed. Here are some of her ideas.
In basic terms, the Fed will credit all eligible FedAccounts when it determines that it is necessary to expand the money supply in order to stimulate economic activity and ensure better utilization of the national economy’s productive capacity.
In the economic literature, this form of unconventional (by present standards) monetary policy is commonly known as “helicopter drop” or “QE for the people.”
To maximize the economic stimulus of the helicopter drops, however, it may make more sense to have a progressive scale for crediting accounts of individuals, so that less wealthy U.S. citizens and eligible residents receive proportionately higher amounts of money.
That is exactly what Emmer wants to stop.
His bill does not go far enough. The bill also needs to prevent negative interest rates and expiring money.
Of course there should not be a Fed at all, but let’s focus on what might be doable.
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