Sen. Ted Cruz (R-Texas) has stated
that Central Bank Digital Currencies could be used to monitor
transactions and enable governments to infringe on privacy rights.
Cruz added that he is bullish on Bitcoin.
- Cruz
argued that CBDCs, which are digital versions of national currencies,
could be used to replace Bitcoin and other cryptocurrencies, ultimately
destroying their value.
- He mentioned China's efforts to create a
digital version of the yuan as an example of how CBDCs could be used to
control and monitor financial transactions.
- Cruz also expressed concern that CBDCs could lead to increased government surveillance and infringement on personal privacy.
- His
comments, however, were considered inaccurate by some industry experts
who argue that CBDCs and cryptocurrencies can coexist and serve
different purposes.
Zoom Out:
- These comments come at a time when government authorities and regulators are heavily criticizing the cryptocurrency industry.
- Since the bankruptcy of FTX, crypto companies have been criticized for their perceived lack of transparency and regulatory adherence.
