Ted Cruz, the Republican Senator, recently introduced a new bill that could potentially block the United State Federal Reserve from creating a central bank digital currency that is direct-to-consumer. In a statement made on 21st March, the Senator stated that he had introduced this bill in order to prevent the Federal Reserve from creating a retail CBDC which, he believes, would be used as a tool for financial surveillance by the federal government.
Cruz mentioned that it was far more important than ever to make sure that the US policy on digital currencies protects financial privacy while maintaining the dominance of the US Dollar as well as cultivating innovation.
Ted Cruz Introduces New Anti-CBDC Bill In Senate
Ted Cruz also claimed that the federal government had absolutely no authority in unilaterally establishing CBDC. He further stressed that the Senate should be empowering entrepreneurs, increasing individual liberty, and enabling innovation- not stifling it through any means possible.
The anti-CBDC bill Cruz proposed has had the backing of Republican Senators Mike Braun of Indiana, as well Chuck Grassley of Iowa. In further statements, both of the Senators expressed the idea that a CBDC would probably be used as a surveillance tool. Grassley mentioned that if the bill actually came to pass, it would ensure that the state wasn’t snooping in on the finances of those Americans who were extremely hard-working.
The anti-CBDC bill by Ted Cruz is the second attempt made by this Senator- who had previously introduced a similar bill on the 30th March 2022- that prohibited the Feds from issuing a CBDC directly to the individuals. However, it has been reported that the bill hasn’t moved beyond the introductory phase after a year.