U.S. Sen. Ted Cruz (R-Texas) has introduced a bill that would prevent the Federal Reserve (Fed), the U.S.' central banking system, from developing a central bank digital currency (CBDC).
The
senator said the federal government has no authority to establish a
CBDC, and these digital assets could be used as a direct surveillance
tool by the government, violating the privacy rights of American
citizens.
- The bill is co-sponsored by Sens. Mike Braun (R-Ind.) and Chuck Grassley (R-Iowa).
- The Texas Senator stated that the government should encourage individual freedom instead of hindering it.
- The politician also underlined that CBDCs are backed by the government and transacted on a centralized blockchain, differently from decentralized digital assets like Bitcoin.
- Cruz introduced similar legislation in 2022.
- Florida Gov. Ron DeSantis
also recently proposed a law to ban the use of a CBDC as money in the
state, citing the risks of hindering innovation and promoting government
surveillance.
- U.S.
President Joe Biden signed an executive order last year for the federal
government to explore the potential use cases and risks of a CBDC.
