Central Bank Digital Currency a ‘Key Duty’ of Federal Reserve

The U.S. Federal Reserve shared with Congress that one of its “key duties” is to establish a central bank digital currency (CBDC).

GOP Majority Whip Tom Emmer (R-MN) shared the information on X, writing, “If you don’t think the Fed is pursuing a CBDC, think again.”

“The Fed gave this to my staff during a presentation earlier this Congress. They view a CBDC as one of their KEY DUTIES.”

CBDC is a “digital form of central bank money that is widely available to the general public,” according to the Federal Reserve Board. “While Americans have long held money predominantly in digital form—for example in bank accounts, payment apps or through online transactions—a CBDC would differ from existing digital money available to the general public because a CBDC would be a liability of the Federal Reserve, not of a commercial bank,” the board added.

Earlier this month, Fed Chair Jerome Powell said the United States was “nowhere near recommending—or let alone adopting—a central bank digital currency in any form.” He noted, “People don’t need to worry about it.”

Rep. Byron Donalds (R-FL) echoed Emmer’s concerns, warning that CBDC is a “dangerous threat to freedom.”

“It is critical that we work to protect the American people from government tyranny & that we never allow the creation of CBDC in America,” he wrote.

Donald Trump is a major critic of CBDC.

During a speech in New Hampshire, Trump promised that he will “protect Americans from government tyranny, as your President I will never allow the creation of a central bank digital currency.”

Trump explained, “You know what they’re doing, such a currency would give a federal government, our federal government, the absolute control over your money; they could take your money, you wouldn’t even know it was gone. This would be a dangerous threat to freedom, and I will stop it from coming to America.”