For the senator, the main concern has to do with the fact that the FED utilice la CBDC to become a retail bank and finance residents and/or entities. It also ensures that a digital dollar must be a guarantor of innovation and keep the values associated with the US currency present at all times.
Tom Emmer, Minnesota’s representative to the U.S. Senate, revealed today that he plans to introduce a bill to limit the amount of money the U.S. government will be able to issue in the United States. US Federal Reserve (FED) in the event that the creation of a digital dollar becomes official.
Bill to limit the scope of the FED on a CBDC
The news was shared by Emmer himself through his official account an account is essentially a whose purpose is to track the financial activities of a specific asset/ of Twitter, where he wrote the following:
“Today, I introduced a bill prohibiting the Fed from issuing a central bank-backed digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. directly to individuals. Here’s why this is important.”
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
The tweet came accompanied by a thread of messages in which the representative justifies the intention behind this measure, which is mainly to ensure that the FED mismanagement of the CBDC to the detriment of the U.S. dollar itself, presumably in view of the government agency’s stance on the overprinting of banknotes in the context of the U.S. dollar pandemic. COVID-19, with the intention of financing projects to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. the citizenry at the cost of generating higher inflationary levels.
By doing so, the official also wants to prevent the FED follow the same path that the Chinese government has been taking with its digital yuan, which it sees as a control mechanism for the financial freedoms of residents. In that sense, Emmer commented:
“While other countries, such as China, develop a CBDC that essentially omits the benefits and protections of cash, it is more important to ensure that these never run afoul of U.S. digital currency policy, i.e., that it is a guarantor of financial privacy, maintains dollar dominance, and cultivates innovation.”
“The Fed does not have, and should not have, the authority to offer retail bank accounts. Regardless, any CBDC implemented by the FED must be open, permissionless, and a guarantor of user privacy. This means that any digital dollars must be accessible to all, transact on a blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. network a network refers to all nodes in the operation of a blockchain at any given moment in time. that is transparent to all, and maintain the privacy elements of cash.”
Concerns regarding the FED
An interesting aspect to note is that Emmer’s initiative comes one day after the president of the FED, Jerome Powell, informase ante el Senate Banking Committee that the report on digital currencies and CBDC was already ready, but that it would be published in the next few weeks.
During that meeting, Powell made a number of comments, most notably stating that a CBDC could coexist with the stablecoins in the market, as long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. as the latter complied with the relevant regulations. Another particularly contentious point made by Senator Pat Toomey was the concern that the FED to operate as a retail bank:
“Some have advocated, as you know, using and developing a central bank digital dollar in such a way that U.S. individuals would have retail accounts with the Fed, and the Fed would become the retail banker of the United States. It seems to me that there is absolutely nothing in the history, the experience, the expertise, the capabilities of the Fed, that would lead it to be a retail banker.”
For the time being, the eyes of users and analysts in the digital currency sector are on the FED, as a report released earlier this month revealed that the agency plans to begin implementing more aggressive changes to the measures it had maintained to date to support the local economy in the context of the pandemic by COVID-19, including sovereign bond buybacks and keeping bank interest rates close refers to the closing price; similar to the same term used in stock trading. to zero.
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Source: Cointelegraph , Twitter
Version by Angel Di Matteo / DiarioBitcoin
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