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.
- 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.