Five U.S. senators support a bill that would ban the Federal Reserve from introducing central bank digital currencies (CBDCs), describing it as an attempt by the Biden administration to monitor Americans’ spending habits.
Senator Ted Cruz (R-Texas) introduced the CBDC Surveillance Prevention Act this week with the support of four other lawmakers, including Bill Hagerty of Tennessee and Mike Braun of Indiana.
Senators Ted Budd and Rick Scott, whose states, North Carolina and Florida, have passed bills banning the use of digital dollars, also supported the bill.
Cruz, one of the most outspoken CBDC critics, has argued that the Biden administration plans to use digital dollars to violate the rights of Americans. He reiterated the most common criticism that CBDCs will be used as surveillance tools by authorities.
“The Biden administration is salivating at the thought of encroaching on our freedoms and infringing on citizens’ privacy to monitor individual spending habits, which is why Congress needs to make it clear that the Fed does not have the authority to implement a CBDC. This is why. “I’m proud to be leading the fight in the Senate to limit the Federal Reserve’s attempts to introduce CBDCs into the U.S. economy,” he said.
The draft bill focuses on the Federal Reserve rather than a digital dollar. It aims to “ensure that the Federal Reserve cannot mobilize retail banking” by prohibiting central banks from issuing CBDCs directly to Americans.
The bill also prohibits the Federal Reserve from using a two-tier system to issue digital dollars indirectly through commercial banks. Additionally, CBDCs should not be used as a monetary policy tool.
The bill states that if the United States wants to issue a digital dollar, Congress must enact legislation to do so.
“Big government has no business controlling Americans’ personal finances and monitoring them to track their transactions. “That, to me, is a huge overestimation and a non-starter.” Florida’s Scott commented, pledging his support for Cruz and the bill.
The bill received support from groups including conservative think tank Heritage Action and the American Bankers Association.
The Blockchain Association also supported the bill, saying CBDCs present “major privacy concerns for ordinary Americans,” including allowing the government to freeze people’s funds for reasons it sees fit. promised.
As the election approaches, digital dollars are likely to become a major divisive factor. CBDCs have become a partisan issue, with Republicans opposing them while Democrats expressing cautious support. Republican presidential candidate Donald Trump made a pledge.
Americans “will never allow the creation of a CBDC,” he said.
To learn more central bank digital currency Read on for some design decisions to consider when creating and getting started. nChain’s CBDC Playbook.
Watch: Blockchain provides the perfect foundation for a CBDC
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