U.S. Senator Ted Cruz has introduced a bill that would “prohibit the Federal Reserve from developing a consumer-directed central bank digital currency (CBDC). The senator warned that it “could be used as a financial surveillance tool by the federal government.” Another senator emphasized: “American citizens should be able to spend their money as they wish without the possibility of every transaction being tracked by the government.”
On Senator Ted Cruz’s CBDC Bill
U.S. Senator Ted Cruz (R-Texas) on Tuesday introduced “a bill to prohibit the Federal Reserve from developing a consumer-directed central bank digital currency that could be used as a financial surveillance tool by the federal government. announced that he has reintroduced legislation that would “prohibit the Federal Reserve from developing a consumer-directed central bank digital currency that could be used as a financial surveillance tool by the federal government. The bill, co-authored by Senators Brown (IN) and Grassley (IA), was first introduced last March.
The announcement underscores the importance of ensuring that U.S. digital currency policy “protects financial privacy, maintains the dollar’s dominance, and fosters innovation.” And Cruz warns:
A CBDC that does not adhere to these three basic principles could allow organizations like the Federal Reserve to mobilize itself into a retail bank, collect personally identifiable information about its users, and track their transactions indefinitely.
The Texas senator noted that unlike decentralized cryptocurrencies such as Bitcoin, CBDC “centralizes Americans’ financial information and makes them vulnerable to attack.”
He cautioned that “the federal government does not have the authority to unilaterally enact a central bank currency,” adding:
We should empower entrepreneurs, enable innovation, and enhance personal freedom, not stifle it.
Congressman Braun noted that “allowing the government to centralize Americans’ financial information and increase oversight of Americans’ financial activities is simply a bad idea.”
Commenting on the bill he co-sponsored, Senator Grassley said:
American citizens should be able to spend their money as they wish without the possibility of every transaction being tracked by the government.
Senator Cruz is a bitcoin investor who buysBTCon a weekly basis. He expressed strong optimism about crypto and explained that he is bullish onbecause BTCis decentralized and out of control. In January of this year, he proposed a resolution urging the Capitol gift store to accept cryptocurrency.
Meanwhile, Congressman Tom Emmer also recently reintroduced the CBDC Anti-Surveillance State Act in the House. This week, Florida Governor Ron DeSantis proposed to ban the use of federally adopted CBDC as currency in his state. However, Federal Reserve Chairman Jerome Powell said earlier this month that the Fed is not at the stage of making a serious decision on CBDC.” He clarified that “we have not decided that it is something that the nation’s financial system wants or needs.
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