U.S. Senator Cruz Introduces Bill to Stop Federal Reserve From Using Digital Currency as a Surveillance Tool
U.S. Senator Ted Cruz has introduced legislation prohibiting the Federal Reserve from issuing a major digital currency for banks (CBDC) specifically to people and threatening other private companies.
Senator Cruz from Texas cautioned that such a CBDC system could centralize the financial data, making it more vulnerable to attack. Still, it could also be utilized “as a direct surveillance tool into the private transactions of Americans.”
Senator Cruz Introduced Bill to Stop the Fed from issuing digital dollars to consumers who shop at the store.
U.S. Senator Ted Cruz (R-TX) introduced legislation on Wednesday “to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals,” an announcement via his official site explains. This bill is cosponsored by Senators Mike Braun (R-IN) and Chuck Grassley (R-IA).
“No Federal Reserve bank may offer products or services directly to an individual, manage an account for an individual and issue central bank’s cryptocurrency directly to an individual”, the bill’s text the statement reads.
Declaring the “The bill aims to maintain the dollar’s 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,” the announcement explains:
Senator John McCain thinks that digital currency issued by central banks (CBDCs) should follow three fundamental guidelines: safeguard financial privacy and maintain the dominance of the dollar and foster the development of new technologies.
CBDCs who fail to comply with these principles “could enable an entity like the Federal Reserve to mobilize itself into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely.”
In announcing it is “Unlike decentralized digital currencies like bitcoin, CBDCs are issued and backed by a government entity and transact on a centralized, permissioned blockchain,” the senator warned that:
When introducing the bill, Senator Cruz stated, “The federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it.” He added:
Following the introduction by Senator Cruz for the measure, U.S. Representative Tom Emmer (R-MN) made an announcement saying that the bill introduced by Cruz is an amendment to his statement and is directed at “prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.” Emmer presented his bill in January. 18.
The congressman stated, “I’m glad Senator Cruz has agreed to offer a Senate companion to my legislation limiting the Fed’s authorities,” insisting:
“Anything less puts Americans on the road to CCP-style financial authoritarianism,” the congressman declared.
It is believed that the Federal Reserve has not decided whether it will issue a CBDC.
In January, the Fed released a report looking at the different aspects of a digital dollar.
A few lawmakers and Federal Reserve governors are still not sure if they believe that the U.S. should issue a significant digital currency for banks.
In November, Federal Reserve Governor Michelle Bowman stated that “I’m not really sure that I understand or see the business case for creating it.”
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