US Senator Introduces Bill to Ban Direct-to-Consumer Central Bank Digital Currency

U.S. Senator Ted Cruz has introduced “legislation to prohibit the Federal Reserve from processing a direct-to-consumer” cardinal slope integer currency (CBDC). The lawmaker warned that it “could beryllium utilized arsenic a fiscal surveillance instrumentality by the national government.” Another legislator stressed: “The American radical ought to beryllium capable to walk their wealth however they take without the anticipation that each transaction could beryllium tracked by the government.”

Senator Ted Cruz’s CBDC Bill

U.S. Senator Ted Cruz (R-TX) announced Tuesday that helium has reintroduced “legislation to prohibit the Federal Reserve from processing a direct-to-consumer cardinal slope integer currency which could beryllium utilized arsenic a fiscal surveillance instrumentality by the national government.” The bill, cosponsored by Senators Braun (R-IN) and Grassley (R-IA), was first introduced successful March of past year.

The announcement highlights the value of ensuring that the U.S. integer currency argumentation “protects fiscal privacy, maintains the dollar’s dominance, and cultivates innovation.” Cruz warned:

CBDCs that neglect to adhere to these 3 basal principles could alteration an entity similar the Federal Reserve to mobilize itself into a retail bank, cod personally identifiable accusation connected users, and way their transactions indefinitely.

The legislator from Texas noted that dissimilar decentralized cryptocurrencies, specified arsenic bitcoin, CBDCs “centralize Americans’ fiscal information, leaving it susceptible to attack.”

He cautioned, “The national authorities has nary authorization to unilaterally found a cardinal slope currency,” adding:

We should beryllium empowering entrepreneurs, enabling innovation, and expanding idiosyncratic state — not stifling it.

“Allowing the authorities to centralize Americans’ fiscal accusation and summation surveillance of Americans’ fiscal enactment is simply a atrocious idea,” Senator Braun noted.

Commenting connected the measure helium cosponsored, Senator Grassley opined:

The American radical ought to beryllium capable to walk their wealth however they take without the anticipation that each transaction could beryllium tracked by the government.

Senator Cruz is simply a bitcoin investor who purchases BTC connected a weekly basis. Expressing strong optimism towards the crypto, helium explained that helium is bullish connected BTC due to the fact that it’s decentralized and uncontrollable. In January this year, helium introduced a solution encouraging Capitol acquisition shops to judge cryptocurrency.

Meanwhile, Congressman Tom Emmer besides precocious reintroduced his “CBDC Anti-Surveillance State Act” successful the House of Representatives. This week, Florida Governor Ron DeSantis projected a ban connected the usage of a federally adopted CBDC arsenic wealth successful his state. Federal Reserve Chairman Jerome Powell, however, said earlier this period that the Fed is not astatine the signifier of making immoderate existent decisions connected a CBDC. “We haven’t decided that this is thing that the fiscal strategy successful the state would privation oregon need,” helium clarified.

Do you hold with Senator Ted Cruz astir the harm a direct-to-consumer cardinal slope integer currency could bring to U.S. consumers? Let america cognize successful the comments conception below.

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