US Senator Ted Cruz introduced “legislation prohibiting the Federal Reserve from developing a direct-to-consumer central bank digital currency (CBDC). The lawmaker warned that it “could be used as a financial surveillance tool by the federal government.” Another senator pointed out, “The American people should be able to spend their money as they see fit without the possibility that every transaction can be tracked by the government.”
Senator Ted Cruz’s CBDC Bill
U.S. Sen. Ted Cruz (R-TX) announced on Tuesday that he has reintroduced “legislation prohibiting the Federal Reserve from developing a direct-to-consumer central bank digital currency that could be used as a financial surveillance tool by the government. federal”. The bill, co-sponsored by Senators Braun (R-IN) and Grassley (R-IA), was first introduced in March of last year.
The announcement highlights the importance of ensuring that US digital currency policy “protects financial privacy, maintains dollar dominance, and cultivates innovation.” Cruz warned:
CBDCs that fail to follow these three basic principles could allow an entity like the Federal Reserve to mobilize into a retail bank, collect personally identifiable information about users, and track their transactions indefinitely.
The Texas senator noted that unlike decentralized cryptocurrencies, such as bitcoin, CBDCs “centralize Americans’ financial information, making them vulnerable to attack.”
He warned, “The federal government does not have the authority to unilaterally establish central bank money,” adding:
We should empower entrepreneurs, enable innovation and increase individual freedom, not stifle it.
“Allowing the government to centralize Americans’ financial information and increase surveillance of Americans’ financial activity is simply a bad idea,” noted Senator Braun.
Commenting on the bill he co-sponsored, Senator Grassley said:
The American people should be able to spend their money as they see fit without the possibility that every transaction can be tracked by the government.
Senator Cruz is a bitcoin investor who buys BTC on a weekly basis. Expressing strong optimism towards the crypto, he explained that he was bullish on BTC because it’s decentralized and uncontrollable. In January of this year, he introduced a resolution encouraging Capitol gift shops to accept cryptocurrency.
Meanwhile, Congressman Tom Emmer also recently reintroduced his “CBDC Anti-Surveillance State Act” in the House of Representatives. This week, Florida Governor Ron DeSantis proposed banning the use of a federally-adopted CBDC as a currency in his state. Federal Reserve Chairman Jerome Powell said earlier this month, however, that the Fed was not at the stage of making any real decisions on a CBDC. “We haven’t decided that’s something the country’s financial system wants or needs,” he said.
Do you agree with Senator Ted Cruz on the harm that a direct-to-consumer central bank digital currency could cause US consumers? Let us know in the comments section below.
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