A member of the US House of Representatives is speaking up loudly against the US’s proposal to introduce central bank digital currencies. Covered: December Inflation Report Tom Emmer Fights Against CBDCs #Bitcoin pic.twitter.com/o3imH7WdSk — naiive (@naiiveclub) January 12, 2022 RECOMMENDED: GRAYSCALE FLIPS WORLD’S LARGEST GOLD FUND — HAS BITCOIN BECOME THE SUPERIOR INFLATION HEDGE? December […] The post US Represenative Tom Emmer Introduces Bill To Shut Down CBDCs appeared first on CryptosRus.

US Represenative Tom Emmer Introduces Bill To Shut Down CBDCs

A member of the US House of Representatives is speaking up loudly against the US’s proposal to introduce central bank digital currencies.

Covered:

  • December Inflation Report
  • Tom Emmer Fights Against CBDCs

RECOMMENDED: GRAYSCALE FLIPS WORLD’S LARGEST GOLD FUND — HAS BITCOIN BECOME THE SUPERIOR INFLATION HEDGE?

December Inflation Report

The crypto markets are flying higher today after the latest US consumer price index inflation report. Inflation has hit 7% growth since last year, marking the biggest yearly gain since 1982. Despite the bleak outlook for the overall economy, traditional markets and crypto are flying higher as central bankers continue to debase the value of currencies across the globe. 

Bitcoin (BTC) is trading in the green, up over 9% since bottoming out under $40,000 just two days ago. 

It seems as though the inflation reports were already priced in by the time they came out this morning – investors across all market sectors have been anticipating higher inflation levels for months now, and the actions from the Federal Reserve have shown nothing to suggest that inflation should come back down anytime soon.

To me, this just reads, “Let us pump up the markets more before we think about tapering.”

Tom Emmer Fights Against CBDCs

Rather than suggesting an alternative to an unlimited money supply, however, central bankers and politicians have been pushing the implementation of CBDCs as an alternative to our cash-based system. US Representative Tom Emmer, however, has introduced a bill with some choice words for the idea, suggesting that CBDCs will only serve to do more harm than good.

“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.

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.

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.

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.

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.

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.

Simply put, we must prioritize blockchain technology with American characteristics, rather than mimic China’s digital authoritarianism out of fear.”

RECOMMENDED: MEXICO PREPARES TO LAUNCH CBDC BY 2024 — THIS IS WHY YOU NEED BITCOIN

I think it’s particularly important to highlight this last sentence from the thread; the roadmap of what CBDC implementation could look like has already been laid by China. The country has already rolled out its digital yuan and is actively testing it in major commerce events, such as the 2022 Winter Olympics.

Anyone who’s paid attention to China’s rise in power over the last two decades knows the potential danger in implementing a CBDC. The digital yuan gives China an opportunity to keep control while also making it easier to expand as more regions adopt the digital yuan. Representative Emmer sees this in China and is actively trying to prevent the US from going down the same route.

We will have to see how the bill holds up among Congress; however, it’s a good sign to see Representatives actively speaking up for the alternative made possible by an open-source, transparent blockchain. 

The post US Represenative Tom Emmer Introduces Bill To Shut Down CBDCs appeared first on CryptosRus.