Digital Dollar Targeted in GOP Bill Cautioning Surveillance (1)

The Federal Reserve would be blocked from issuing a digital dollar as part of a Republican legislative proposal that raises the specter of government surveillance over Americans’ financial transactions.

The bill (H.R. 1122) from House Majority Whip Tom Emmer of Minnesota takes aim at financial privacy implications of a US government-backed virtual currency. The Fed is evaluating the potential for a US central bank digital currency but has not yet decided whether to proceed.

Unlike traditional cash or other virtual currencies, a Fed-backed digital dollar distributed directly to Americans may generate a centralized record of individual transactions, worrying ...