US Senator Ted Cruz has introduced legislation to prevent the Federal Reserve from issuing central bank digital currencies (CBDCs) directly to individuals and competing with the private sector. The Texas senator warned that this CBDC model would not only centralize financial information, making it vulnerable to attacks, but could also be used “as a direct surveillance tool in the private transactions of Americans.”
Senator Cruz introduces bill to block Fed from issuing digital dollars to retail consumers
US Senator Ted Cruz (R-TX) introduced legislation on Wednesday “to prevent the Federal Reserve from issuing central bank digital currency (CBDC) directly to individuals,” described in an announcement posted on his official website. has gone. The bill was co-sponsored by Senators Mike Braun (R-IN) and Chuck Grassley (R-IA).
“No Federal Reserve Bank may provide products or services directly to any person, maintain an account on behalf of any person, or issue central bank digital currency directly to any person,” reads the text of the bill. .
Stating that “the bill aims to maintain dollar dominance without competing with the private sector” and “it is important to note that the Fed does not, and should not, have the authority to offer retail bank accounts,” Declaration Detail:
The law prohibits the Federal Reserve from developing a direct-to-consumer CBDC that could be used by the federal government as a financial monitoring tool, as is currently happening in China.
Senator believes central bank digital currency[CBDC]should adhere to three basic principles: protecting financial privacy, maintaining dollar dominance, and developing innovation. CBDCs that fail to do so “could enable entities such as the Federal Reserve to organize themselves into retail banks, collect personally identifiable information on users and track their transactions indefinitely.”
Noting that “unlike decentralized digital currencies like bitcoin, CBDCs are issued and backed by a government entity and transact on a centralized, permissioned blockchain,” the senator cautioned:
Not only would this CBDC model centralize Americans’ financial information, making it vulnerable to attacks, it could also be used as a direct surveillance tool for Americans’ private transactions.
Upon introducing the legislation, Senator Cruz commented, “The federal government has the potential to encourage and nurture innovation in the cryptocurrency space, or to destroy it altogether.” He emphasized:
This bill goes a long way in ensuring that the big government does not attempt to centralize and control the cryptocurrency so that it can flourish and prosper in the United States.
Cruz concluded: “We must empower entrepreneurs, enable innovation, and enhance individual freedom—not stifle it.”
Following the introduction of Senator Cruz’s bill, US Representative Tom Emmer (R-MN) issued a proclamation stating that Cruz’s bill is a companion to his own bill, which was intended to “instruct the Federal Reserve to issue central bank digital currency”. to stop”. CBDC) directly to individuals.” Emir introduced his bill on January 18.
“I am pleased that Senator Cruz has agreed to offer a Senate mate for my legislation limiting Fed officials,” the Congressman said, emphasizing:
The Fed should simply create a CBDC framework that is open, permissionless, and private – meaning that any digital dollar must be accessible to all, transact on a blockchain that is transparent to all, and have access to the privacy of cash. retain the elements.
“Anything less puts Americans on the path to CCP-style financial authoritarianism,” the congressman insisted.
The Federal Reserve has decided not to issue a CBDC. In January, the Fed published a report exploring various aspects of the digital dollar.
Some lawmakers and Federal Reserve governors are still unable to decide whether the US should issue a central bank digital currency. Federal Reserve Governor Michelle Bowman similarly said in November, “I’m not really sure I understand or see the business case for making this up.”
Do you think the Fed should be able to issue central bank digital currencies directly to individuals? Let us know in the comments section below.
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