Fed Considers Digital Currency a ‘Key Duty,’ Congressman Warns

The U.S. Federal Reserve (Fed) has listed a central bank digital currency (CBDC) as one of its “key duties” in a document presented to Congress.

Congressman Tom Emmer Raises Concerns

Republican Congressman Tom Emmer of Minnesota shared a document titled “Key Duties of the Fed – Payment Systems” that he received from Fed officials. He tweeted, “If you don’t think the Fed is pursuing a CBDC, think again… They view a CBDC as one of their KEY DUTIES.”

Emmer, a vocal supporter of cryptocurrency and skeptic of CBDCs, believes that digital fiat currencies would give the government the ability to monitor citizens’ financial transactions.

Fed Chair Powell’s Comments

Despite the Fed’s listing of a CBDC as a key duty, Fed Chair Jerome Powell testified before Congress last week that the institution has no immediate plans to implement one.

Powell explained that the Fed is exploring the concept of a CBDC due to the increasing digitalization of money. However, he emphasized that the Fed does not want a CBDC that would allow the government to track transactions.

“That’s just something we would not stand for or do or propose here in the United States,” Powell said.