Key Takeaways:
- An anti-CBDC bill has been introduced in the US after the ban on digital dollars by President Donald Trump.
- The US lawmaker Tom Emmer disclosed that a ban has been introduced on CBDC on March 6
- With the recent ban, federal banks are restricted from using or issuing central bank digital currencies.
- Although Tom Emmer revealed the ban on CBDC last day, Trump signed an executive order to ban the digital US dollar in January.
The US lawmaker and Minnesota Representative Tom Emmer has come up with the reintroduction of a bill that bans the US government from producing and distributing digital dollars. The law which was introduced by Tom earlier was approved by the House of Representatives but got stuck in the Senate. However, Tom Emmer reintroduced the bill as President Donald Trump ordered a temporary ban on the US digital dollars.
Reintroduction of Anti-CBDC bill in the US
Tom Emmer, the Minnesota Representative has emerged with a plan to reintroduce the anti-CBDC bill in the US. In an official announcement on March 6, Tom suggested that he was planning to ban the federal banks from creating and issuing central bank digital currency, aiming to protect people’s financial privacy.
The bill which is now being discussed in Congress was first introduced by Tom in 2022. Tom Emmer then introduced the idea of banning CBDC and got approval from the House of Representatives in 2024. However, the bill got stuck in the Senate and did not receive any further updates. But, with the new order of President Donald Trump restricting the creation of the digital US dollars, Tom Emmer reintroduced the anti-CBDC bill.
If the bill gets approval this time, it would change the rules of the government’s major bank, the Federal Reserve. According to this rule, the Federal Reserve would be banned from creating digital dollars or similar currencies in the future. At present, the order signed by Donald Trump on January 23, 2025, is temporary. However, with the approval of Tom Emmer’s law, the anti-CBDC bill would come into effect.
In the recent announcement, Tom noted that he wanted to protect the financial privacy of the people by introducing the law. He added that with the extensive use of digital currencies, the financial transactions and activities of the people could be tracked, destroying their financial freedom. He also noted that Trump understands the dangers of CBDC, which made him issue a temporary ban. Tom plans to extend this temporary ban into a permanent law, which cannot be altered by the future governments. “Now, we must codify this executive order in law and permanently ban their development so a future administration cannot weaponize this technology against Americans,” says Tom Emmer.
According to available information, around 100 Republicans have supported the bill. However, it is unclear whether the bill gets approval from the Senate. The officials have not yet responded to the request for a comment on the topic.
Advancements in the US crypto space
The US crypto space is marking significant advancements with the first White House Crypto Summit scheduled for March 7. With various eminent figures from the crypto landscape and members of the Presidential Working Group on Digital Assets, this is a one-of-a-kind event led by Donald Trump. The event is expected to have detailed discussions and conversations on the US crypto reserve and other topics. Experts also suggest that the anti-CBDC bill would also be a major topic of discussion at the summit.
However, while the US moves away from digital currencies and CBDCs, other countries are heading towards them. Recently, Israel released the primary design for their digital shekel and the European Central Bank is in the preliminary phase of issuing digital euro.
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