- U.S. Senator Ted Cruz introduced legislation to block the Federal Reserve from issuing a retail CBDC.
- The Texas lawmaker has argued that such a CBDC would violate the financial privacy of U.S. citizens.
Texas Senator Ted Cruz introduced legislation to block the Fed’s attempt to develop a Central Bank Digital Currency [CBDC]. The Republican senator argued that a retail CBDC could be used as a financial surveillance tool by the government. He has previously introduced this bill in 2022 as well.
Senator Cruz: CBDCs don’t protect financial privacy
According to a press release dated 21 March from the senator’s office, the bill to block CBDC is co-sponsored by Senators Mike Braun and Charles E. Grassley. Senator Cruz argued that CBDCs don’t protect financial privacy or maintain the dollar’s dominance.
He added that they promote innovation that could be used to collect users’ personally identifiable information and track their transactions. Moreover, a CBDC issued and backed by a government entity would centralize Americans’ financial information, making it vulnerable to attack.
Senator Cruz stated in the press release:
“The federal government has no authority to unilaterally establish a central bank currency. This bill goes a long way in making sure big government doesn’t attempt to centralize or control cryptocurrency and instead allows it to thrive in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom—not stifling it.”
Meanwhile, fellow Texas lawmaker Cody Harris has also put forward a bill that seeks to recognize the right to mine Bitcoin [BTC] in Texas. Harris has furthermore called on lawmakers to protect individuals who code or develop on the Bitcoin network.
Additionally, Senator Ted Cruz’s crackdown on retail CBDCs issued came just a day after Florida Governor Ron DeSantis announced legislation to protect the people of his state by banning the coins.