CBDC opponent is Republican speaker candidate for four hours

A prominent opponent of a US central bank digital currency (CBDC) was briefly the Republican Party’s candidate for speaker of the US House of Representatives yesterday (October 24). However, he was forced to withdraw after four hours, in part due to opposition from former president Donald Trump.

Tom Emmer, a Minnesota legislator and the Republican whip, introduced the “CBDC Anti-Surveillance State Act” in September. The House financial services committee approved the legislation on September 20.

In a press statement, Emmer’s office described CBDC as “government-controlled programmable money that, if not designed to emulate cash, could give the federal government the ability to surveil Americans’ transactions and choke out politically unpopular activity”.

Emmer’s law would prohibit the Federal Reserve from issuing a CBDC. It also forbids the Fed from providing accounts, “products or services” to individuals. Some CBDC proposals would channel digital currency through individual accounts maintained by the central bank.

The Minnesota representative’s criticisms echo those of other critics of CBDC, most prominently among Republicans. Presidential candidate Ron DeSantis has made similar warnings about government manipulation of a CBDC.

The Fed has never adopted concrete plans to introduce a CBDC, though it is conducting research on the subject.

House Republicans nominated Emmer for the speakership after the failure of bids by two other legislators last week. However, Emmer faced opposition from Trump, who released a social media statement calling him a “Rino [Republican in name only]”. Emmer had voted to certify president Joe Biden’s victory in the 2020 presidential election, raising Trump’s ire. Emmer was forced to withdraw after about four hours.

The speaker’s office has been vacant since October 3, when Republican hard-liners moved to dismiss Kevin McCarthy from the office. While there is no permanent speaker, the House cannot process legislation, including Emmer’s proposal.