House Majority Whip Tom Emmer, R-Minn., introduced legislation Thursday that would bar the Federal Reserve from issuing a central bank digital currency (CBDC), the Anti-CBDC Surveillance State Act. America’s Credit Unions has strong concerns over a potential CDBC, particularly since no underlying regulations have been developed.

“Whip Emmer’s legislation protects consumer privacy and financial stability by preventing the Federal Reserve from issuing a CBDC. A CBDC could disrupt credit unions and retail deposits, and expand government,” said Carrie Hunt, America’s Credit Unions chief advocacy officer. “The risks of a CBDC outweigh any potential benefit and could otherwise distract the Federal Reserve from its dual mandate of achieving both stable prices and maximum employment. America’s Credit Unions looks forward with working with Whip Emmer to get this commonsense legislation passed and keep the Fed focused on its core mission.”

"Thanks to Congressman Emmer for authoring legislation that protects credit unions and their members – and the financial system at large – from the unintended consequences of a central bank digital currency issued by the Federal Reserve,” said Mara Humphrey, president/CEO of the Minnesota Credit Union Network. “The Federal Reserve should be focused on its dual mandate of price stability and maximum employment and allow credit unions to continue what they do best – serving their members.”

President Donald Trump’s January executive order creating the President’s Working Group on Digital Assets Markets also prohibits the federal government from developing a CBDC.