U.S. Republican Senator Ted Cruz has introduced a bill to prevent the United States Federal Reserve from launching a central bank digital currency (CBDC) for direct-to-consumer use.
Cruz explained in a statement on March 21, 2023, that he introduced this bill to stop the Fed from creating a retail CBDC, as he believes the federal government could employ it as a tool for financial surveillance.
According to Cruz, the top priorities in formulating U.S. digital currency policies should be protecting financial privacy, preserving the dollar’s dominance, and cultivating innovation.
He further noted that any central bank digital currencies (CBDCs) that ignore these three fundamental principles might empower institutions such as the Federal Reserve to transform into retail banks, obtain sensitive personal data from users, and monitor their transactions indefinitely.
Cruz also believes the U.S. federal government lacks the power to introduce a central bank currency independently. His proposed bill significantly prevents excessive government intervention in the cryptocurrency industry and aims to create an environment that fosters its growth and development within the United States.
The federal government has no authority to unilaterally establish a central bank currency.
Read about my new bill in @FoxBusiness: Ted Cruz introduces bill blocking Fed from adopting central bank digital currencyhttps://t.co/LoX3u41nA4
— Senator Ted Cruz (@SenTedCruz) March 21, 2023
Republican Senators Mike Braun of Indiana and Chuck Grassley of Iowa cosponsored the bill. Both senators argued that allowing the government to centralize Americans’ financial information and increase surveillance of their financial activity is a bad idea. They expressed confidence that the proposed bill will safeguard Americans’ financial privacy and guarantee that state officials do not monitor citizens’ finances.
Cruz, Braun, and Grassley previously attempted to restrict the Federal Reserve from distributing CBDCs directly to individuals with a similar bill on March 30, 2022. Despite being introduced for nearly a year, the bill has only progressed to the introduction stage.
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