The federal government’s hunger for financial surveillance is boundless. A central bank digital currency (CBDC) would completely satisfy it. Under a CBDC, all transactions would be recorded, giving federal agencies the means to review any Americans’ income and expenditures at a glance. Financial privacy would not be compromised: it would be dead.
Federal Reserve Chairman Jerome Powell says this country is “nowhere near” establishing a digital currency. To be sure, such an undertaking would take years. But Nigeria, Jamaica, and the Bahamas already have digital currencies. China is well along in a pilot program for a digital yuan. The U.S. government is actively exploring this as an option. It is not too early to consider the consequences of a digital dollar. Such a digital currency would create a presumably unbreakable code, or “blocks” linked together by cryptographic algorithms, to connect computers to create a digital ledger to record transactions. Some risks of a CBDC are obvious – from the breaking of “unbreakable” codes by criminals and hostile foreign governments, to the temptation for Washington, D.C., to expand the currency with a few clicks, making it all the easier to inflate the currency. House Majority Whip, Rep. Tom Emmer (R-MN), is especially concerned about the privacy implications of a digital currency. “If not designed to be open, permissionless, and private – emulating cash – a government-issued CBDC is nothing more than a CCP-style (Chinese Communist Party) surveillance tool that would be used to undermine the American way of life,” Rep. Emmer said. He is expected to soon reintroduce a bill that would require any central bank digital currency to require authorizing legislation from Congress before it could be enacted. Emmer’s stand is prescient, not premature. From the new requirement for “beneficial ownership” forms by small businesses, to the revelation from House hearings of warrantless, dragnet surveillance through credit card and ATM transactions, the federal government is inventing new ways to track our every financial move. Rep. Emmer is right to head this one off at the pass. PPSA endorses this bill and urges Emmer’s colleagues to pass it into law. A new fiat currency should have the permission of Congress and the American people. Comments are closed.
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