According to a new Fox Business report, US Senators are reportedly introducing legislation against the Federal Reserve’s ability to create a Central Bank Digital Currency (CBDC). Indeed, the report notes sources have identified GOP Senators, led by Texas’ Ted Cruz, enhanced efforts to restrict the creation of a digital dollar ahead of the 2024 PResidential election.
These Senators have argued against the legality of creating such a CBDC. These officials have identified the potential weaponization of the technology. Specifically, for surveillance and the lack of financial autonomy that would derive from its arrival. The development arrived following the Biden administration green lighting Fed research on CBDC use cases.
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US Senators Seek to Ban Federal Reserve From Issuing CBDC
There is no denying that the digital asset sector is poised to play its biggest role yet in the US political realm. Indeed, the growing market is as prominent as it ever has been with the approval of Spot Bitcoin ETFs earlier this year. Moreover, with the PResidential elections on the horizon, regulatory conversations have only gotten more frequent.
Now, one facet of the technology is already increasing dissension on Capitol Hill. Specifically, a new report has stated that US Senators are doubling down on legislation against the creation of a CBDC. Specifically, Fox reports that GOP Senators have enhanced their efforts against the Federal Reserve-issued digital dollar.
The report identified Ted Cruz as leading the efforts proclaiming the dangers of the asset. Moreover, Former president and Re-election candidate Donald Trump has shared concerns over the Central Bank-issued currency.
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Specifically, the concern stems from the potential lack of financial autonomy that would derive from the technology. Additionally, the surveillance and control that these Central Banks could have on citizens’ funds.
The increased anti-CBDC efforts have come forth after the Biden administration recently allowed Fed research on how this digital currency could help the accessibility and cost of payments in the US. Currently, there are no plans for an imminent implementation of a Central bank Digital Currency.
Cruzs noted that Bill Haggerty of Tennessee, Rick Scott of Florida, Ted Budd of North Carolina, Mike Braud of Indiana, and Kevin Cramer of North Dakota will sponsor the CEntrla Bank Digital Currency Anti-Survaillance State Act. Moreover, they confirmed the legislation will be introduced on Monday.