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The Federal Reserve Secretly Pursuing Central Bank Digital Currency
The Federal Reserve seems to be actively considering the implementation of a central bank digital currency (CBDC), despite any public statements to the contrary, as indicated by a leaked document.
On a recent occasion, GOP Majority Whip Tom Emmer (R-MN) unveiled a document he reportedly received from central bank personnel during a presentation to Congress. This document outlined the “Key Duties” of the Fed, listing “Central Bank Digital Currency” among them.
Emmer took to Twitter to share his disbelief at the revelation, stating, “If you don’t think the Fed is pursuing a CBDC, think again.” A CBDC is a digitized representation of a central bank-issued fiat currency, directly pegged to the nation’s official currency, such as the U.S. dollar.
Key figures within the Federal Reserve, including vice chair Lael Brainard, have highlighted CBDCs as a means to solidify the global dominance of the dollar and ensure a secure central bank presence in the digital financial landscape.
In stark contrast, Emmer and a cohort in Congress vehemently oppose the introduction of a U.S. CBDC and have consistently advocated for legislation to prohibit their issuance. Emmer, along with political counterparts like Sen. Ted Cruz (R-TX) and Florida Governor Ron DeSantis, argue that CBDCs mirror China’s approach to financial monitoring and control.
China, recognized as an early adopter of CBDCs with its digital yuan (e-CNY), processed a substantial volume of cross-border remittances totaling 10.16 trillion yuan ($1.36 trillion) between January and September of the previous year.
Neighboring Hong Kong recently initiated phase 2 of its digital currency pilot, expanding trials from retail payment integration to exploring functionality like programmability, tokenization, and atomic settlement.
In contrast, the U.S. remains in the investigative stage regarding CBDCs, deferring an official decision on issuance or testing. During a recent address to the Senate Banking Committee, Fed Chair Jerome Powell confirmed that any developments concerning a CBDC would only progress with congressional approval and user privacy as a paramount concern.
Powell emphasized, “We’re nowhere near recommending—or let alone adopting—a central bank digital currency in any form.” This statement aimed to allay public concerns regarding the imminent implementation of a CBDC.
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