On Tuesday, March 21, Texas Senator Ted Cruz introduced a bill to prohibit the Federal Reserve from adopting a central bank digital currency (CBDC). While introducing the legislation, Cruz said,
“The federal government has no authority to unilaterally establish a central bank currency. This bill goes a long way in making sure big government doesn’t attempt to centralize or control cryptocurrency and instead, allows it to thrive in the United States.”
Also Read: Would CBDCs eventually lead to the demise of Crypto?
The Senator added that the government should be “empowering” entrepreneurs, enabling innovation, and fostering individual freedom, instead of “stifling it.” Notably, the bill is co-sponsored by Senators Mike Braun and Chuck Grassley. The U.S. federal government is currently researching the possibility of a CBDC. This is a part of an executive order that President Biden passed in March 2022.
CBDCs: A threat to privacy?
In an officially released statement, Cruz explained that, unlike decentralized digital assets like Bitcoin, CBDCs are issued and backed by a government entity and transacted on a centralized blockchain. Elaborating on why it would be detrimental, he added,
“Not only would this CBDC model centralize Americans’ financial information, leaving it vulnerable to attack, but it could also be used as a direct surveillance tool into the private transactions of Americans.”
In fact, Senator Braun went on to outrightly state that doing so “is simply a bad idea.” He went on to assert that the federal government “should not have even more control over your own money.”
The Senator further underlined that he supports this legislation to “allow entrepreneurship to prosper” and to intrude the federal government from breaching privacy rights.
Well, this is not the first time the digital dollar has been confronted by people in power. Recently, Florida Governor Ron DeSantis announced his support for legislation that would ban centrally bank-controlled currencies. Specifically, DeSantis stated his desire to pass legislation that would forbid the use of CBDC as money within the state.
Also Read: Florida Governor Ron DeSantis Calls for Ban on CBDCs
Commenting on the latest bill, Grassley explained, that every American should be able to spend their money how they choose. This should be done without the possibility of transaction tracking. The senator added,
“Policy this impactful should be made by Congress, not government bureaucrats, and our bill would ensure that no one is snooping on the finances of hardworking Americans. Every American deserves that peace of mind.”
Also Read: Brazil’s Central Bank Launches Experimental CBDC