US Senator TEd Cruz Tries Again With New Bill To Block CBDC
Ted Cruz has said it is “more important than ever” to ensure American citizens’ economic privacy is maintained.
Republican Senator Ted Cruz introduced a law preventing the Federal Reserve from launching a “direct-to-consumer” central bank digital currency.
In a March 21 statement, Cruz said the Federal Reserve had introduced legislation to stop the Federal Reserve from developing a retail CBDC that “could be used by the federal government as a financial surveillance tool.”
Cruz said it was “more important than ever” to ensure U.S. policy on digital currencies “protects financial privacy, preserves dollar dominance and fosters innovation.” added:
“A CBDC that fails to abide by these three basic principles allows institutions like the Federal Reserve to turn into retail banks, collect personally identifiable information about users, and track their transactions indefinitely.
Cruz argued that the federal government “does not have the authority to unilaterally establish a CBDC.”
“We must empower entrepreneurs, enable innovation, and increase individual freedom. We must not stifle them,”
As per SenTedCruz recent Tweet;
Cruz’s anti-CBDC bill is backed by Indiana Senator Mike Brown and Iowa Senator Chuck Grassley.
In their statements, both expressed a belief that CBDC would be used as a surveillance tool.
Grassley explained that if the bill passes, it will ensure that the state does not “pry” into the finances of hardworking Americans.
“Americans should be able to spend their money however they please without the possibility of the government tracking every transaction.”
The anti-CBDC law is the second attempt by Cruz, Braun, and Grassley to introduce a similar law banning the Fed from issuing CBDC directly to individuals on March 30, 2022.
However, almost 12 months later, the bill is still in the introduction stage.
Meanwhile, significant progress has been made in U.S. dollar CBDCs since President Joe Biden signed an executive order entitled “Ensuring Responsible Development of Digital Assets” in March 2022.
In November Federal Reserve Bank of New York and several major financial institutions, including BNY Mellon, Citi, HSBC, and Wells Fargo, joined Mastercard and SWIFT’s 12-week digital dollar pilot program.
Cruz, Brown, and Grassley aren’t the only U.S. politicians fighting to eliminate CBDC.
On March 20, Florida Governor Ron DeSantis called on the state legislature to introduce legislation banning digital dollars in Florida.
DeSantis compares the digital dollar to China’s digital yuan, claiming that e-CNY is being used to “extensively monitor citizens’ behavior,” stating:
“They will do it in any way they can participate in society to advance their agenda. So central bank digital currency is all about policing Americans and controlling what Americans do.
U.S. Congressman Tom Emer recently introduced his anti-CBDC bill on February 22.
Emmer also noted privacy concerns surrounding CBDCs, saying that programmable dollars could be “easily weaponized” as spy tools to “contain politically unpopular activities.” said.