U.S. legislator ted Cruz has introduced legislation to ban the federal reserve from supplying a financial organisation digital currency (CBDC) on to people and competitory with the personal sector. The legislator from texas warned that not solely would this CBDC model change money data, feat it at risk of attack, however it might even be used “as a right away surveillance tool into the private transactions of americans.”
Senator Cruz Introduces Bill to Prevent the Fed From Issuing Digital Dollar to Retail Consumers
U.S. legislator Ted Cruz (R-TX) introduced legislation Wednesday “to disallow the Federal Reserve from issue a financial organization digital currency (CBDC) on to people,” an announcement posted on his official web site describes. The bill was co-sponsored by Senators mike Braun (R-IN) and Chuck Grassley (R-IA).
‘‘No Federal Reserve bank could supply product or services on to a private, maintain an account on behalf of a private, or issue a central bank digital currency on to a private,” the text of the bill reads.
Stating that “The bill aims to take care of the dollar’s dominance while not competitory with the personal sector” and “It is vital to notice that the Fed doesn't, and may not, have the authority to supply retail bank accounts,” the announcement details:
The legislation prohibits the Federal Reserve from developing a direct-to-consumer CBDC which could be used as a financial surveillance tool by the federal government, similar to what is currently happening in China.
The legislator believes that central bank digital currencies (CBDCs) should adhere to 3 basic principles: protect money privacy, maintain the dollar’s dominance, and cultivate innovation. CBDCs that fail to try to tod do} therefore “could change an entity just like the federal reserve to mobilize itself into a retail bank, collect in person diagnosable data on users, and track their transactions indefinitely.”
Noting that “Unlike localized digital currencies like bitcoin, CBDCs are issued and backed by a government entity and interact on a centralized, permissioned blockchain,” the senator warned:
Not only would this CBDC model centralize Americans’ financial information, leaving it vulnerable to attack, it could also be used as a direct surveillance tool into the private transactions of Americans.
Upon introducing the legislation, senator Cruz commented, “The centralized has the flexibility to encourage and nurture innovation within the cryptocurrency house, or to utterly devastate it.” He stressed:
This bill goes a long way in making sure big government doesn’t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States.
Cruz concluded: “We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom — not stifling it.”
Following legislator Cruz’s introduction of the bill, U.S. Representative Tom emmer (R-MN) issued an announcement stating that Cruz’s bill is a companion to his own bill, that is additionally aimed toward “prohibiting the central bank from issuance a central bank digital currency (CBDC) on to individuals.” emmer introduced his bill on Jan. 18.
The representative said, “I’m glad senator Cruz has agreed to offer a Senate companion to my legislation limiting the Fed’s authorities,” emphasizing:
The Fed must only craft a CBDC framework that is open, permissionless and private – meaning any digital dollar must be accessible to all, transact on a blockchain that is transparent to all, and maintain the privacy elements of cash.
“Anything less puts Americans on the road to CCP-style financial authoritarianism,” the congressman stressed.
The federal reserve has not determined whether or not to issue a CBDC. In January, the Fed revealed a report exploring numerous aspects of a digital dollar.
Some lawmakers and central bank governors are still undecided whether or not the U.S. ought to issue a central bank digital currency. federal reserve Governor Michelle bowman equally said in November, “I’m not extremely certain that I perceive or see the business case for making it.”
( Kevin Helms, Bitcoin.com, 2022 )