Rep. Emmer Takes the Lead Against a Surveillance Currency

Photo: House Creative Services / MGN

​Americans value privacy in the marketplace when we vote with our dollars no less than when we go behind the curtains of a polling booth.
 
Now imagine if every dollar in our possession came with an RFID chip, like those used for highway toll tags or employee identification, telling the government who had that dollar in their hands, how that consumer spent it, and who acquired it next.
 
That would be the practical consequence of a policy proposal being promoted now in Washington, D.C., to enact a Central Bank Digital Currency (CBDC). Some have recently asked Congress to attach such a currency to the Bank Secrecy Act, to enable surveillance of every transaction in America.
 
Such a measure would end all financial privacy, whether a donation to a cause, or money to a friend. “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,” said Rep. Tom Emmer (R-MN).
 
This would happen because CBDC is a digital currency, issued on a digital ledger under government control. It would give the government the ability to surveil Americans transactions and, in the words of Rep. Emmer, “choke out politically unpopular activity.”
 
The good news is that President Trump is alert to the dangers posed by a CBDC. One of his first acts in his second term was to issue an executive order forbidding federal agencies from exploring a CBDC.
 
But the hunger for close surveillance of Americans’ daily business by the bureaucracy in Washington, D.C., is near constant. There is no telling what future administrations might do. Rep. Emmer reintroduced his Anti-Surveillance State Act to prevent the Fed from issuing a CBDC, either directly or indirectly through an intermediary. Rep. Emmer’s bill also would prevent the Federal Reserve Board from using any form of CBDC as a tool to implement monetary policy. The bill ensures that the Treasury Department cannot direct the Federal Reserve Bank to design, build, develop, or issue a CBDC.
 
Prospects for this bill are good. Rep. Emmer’s bill passed the House in the previous Congress. It doesn’t hurt that Rep. Emmer is the House Majority Whip and that this bill neatly fits President Trump’s agenda.
 
So there is plenty of reason to be hopeful Americans will be permanently protected from a surveillance currency. But well-crafted legislation alone won’t prevent the federal bureaucracy from expanding financial surveillance, as it has done on many fronts. PPSA urges civil liberties groups and Hill champions of surveillance reform, of all political stripes and both parties, to unite behind this bill.

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