In declarations to forbes, Congressman Tom Emmer rejects the idea of a Fed currency clash with cryptocurrency. Saying that the encryption movement is too strong to be crushed, even by the Federal Reserve.
Authorities have recently increased talks about the introduction of central bank digital currencies (CBDCs). With that, fears about the loss of sovereignty grew louder.
But Congressman Emmer sought to reassure US citizens by saying, “this is not the American way of being.”
US government builds free markets
When it comes to CBDCs crushing cryptocurrencies, the congressman emmer dismissed the notion as “extremely naive”. In addition, if that were possible, cryptocurrencies would never have existed.
Citing the story of Satoshi Nakamoto and the motivation to build an alternative financial system after the 2008 crisis, he said that movement grows stronger with each passing day.
Furthermore, Congressman Emmer raises the issue that the US is based on the free market and entrepreneurship. He said freedom extends to “any stupid idiot” like him, being able to build the next big business out of thin air, as Harley Davidson, Walt Disney and Amazon sprung up.
The US government is concerned about prosperity through free markets, he said. It has no interest in snooping into the lives of its citizens and controlling people for a mandate – that is un-American.
That’s what this country is about. It’s not about the government being able to control your debit card and telling you, for God’s sake Jason and Tom, you’re smoking, we’re going to have to limit your ability to do that because if you follow the science it’s good for your health and we are the overseers of all that is good. This is not the American way.
What’s going on with Fed Coin?
The Federal Reserve was cautious with the digital dollar in the past. But recent reports indicate the project is in full swing.
During a congressional hearing earlier this month, the Fed chairman, Jerome Powell, said the main incentive for a Fed currency is the elimination of cryptocurrency. A view in direct opposition to Congressman Emmer on the matter.
You wouldn’t need stablecoins; you wouldn’t need cryptocurrencies if you had a US digital currency.
That said, Powell is not entirely convinced of the idea of a Fed currency. In 2019, speaking at a conference in Zurich, powell raised questions of cybersecurity and whether people really want a Fed currency. Especially considering the number of payment platforms already in existence.
It’s also not clear to us whether there is a demand for this. You know, consumers have a lot of payment options, they’re not clamoring for it.
However, given China’s attempt at a CBDC, some believe the Fed has no option but to release its own.