In a move against the Biden administration’s plans to introduce a “digital dollar,” five United States senators have united to introduce legislation prohibiting central bank digital currencies (CBDCs).
Led by Senator Ted Cruz, the group, including Senators Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, introduced the CBDC Anti-Surveillance State Act on February 26, challenging the authority of the Federal Reserve to implement such a system.
The CBDC Anti-Surveillance State Act
In a February 26 filing, the senators expressed concerns regarding the potential surveillance and privacy infringements that could arise from the Biden administration’s proposed CBDC.
Senator Hagerty emphasized the importance of protecting Americans’ privacy: “This bill blocks the issuance of a central bank digital currency, preventing CBDC from being used as a tool to surveil and violate Americans’ privacy.”
RELEASE: Sen. Cruz Introduces Legislation to Ban Central Bank Digital Currencieshttps://t.co/Ztf4DZzYen pic.twitter.com/AOVrMsBOAA
— Senator Ted Cruz (@SenTedCruz) February 26, 2024
Senator Cruz voiced fears about the Biden administration’s intentions, asserting, “The Biden administration salivates at the thought of infringing on our freedom and intruding on the privacy of citizens to surveil their personal spending habits, which is why Congress must clarify that the Federal Reserve has no authority to implement a CBDC.”
Describing CBDC as “government-controlled programmable money,” Senator Cruz’s announcement on the legislation filing warned of its potential to collect intimate personal details on citizens and allow for the tracking and freezing of funds.
Senator Budd highlighted the potential dangers of a CBDC, stating, “A CBDC would open the door for the federal government to surveil and control the spending habits of all Americans.”
The Act’s Purpose
The proposed legislation directly challenges the Federal Reserve’s authority, aiming to restrict its ability to offer CBDCs to individuals and prohibit their use for monetary policy purposes.
Additionally, the bill would mandate congressional authorization for any CBDC issuance, effectively reducing the Federal Reserve’s power to introduce such a currency without explicit legislative approval.
The legislation has also gotten endorsements from prominent associations, including Heritage Action for America (HAFA), the Blockchain Association, the American Bankers Association (ABA), the Independent Community Bankers Association (ICBA), and the Club for Growth (CFG).
Meanwhile, former United States President Donald Trump recently weighed in on the CBDCs debate. Expressing his opposition to such initiatives, Trump labeled CBDCs as a “threat to freedom” and pledged to prevent their launch if re-elected to the presidency.
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