Texas Introduces Bill To Ban CBDCs

May 14, 2023 11:17 am Comments

It looks like the state of Texas is following what Florida is doing when it comes to how to approach central bank digital currencies (CBDCs).

Texas is now introducing a bill to ban central bank digital currencies and the bill provides multiple reasons for why CBDCs are a bad idea.

The major reason mentioned is that it allows for more government surveillance and control over private assets.

As a result, this could impact financial freedom and has sparked a lot of debate among politicians and lawmakers.

Florida has also banned CBDCs for the same reasons and many are hopeful that this new bill in Texas will also manage to become law.

Watcher.guru reports:

โ€œMany CBDC proposals involve the centralized collection of transaction data, which poses major privacy and security risks, such as making it easier for intruders to access the data of more users.

However, proposals that include strategies to minimize those risks often reduce transparency for regulators seeking to detect money laundering, terrorism financing, and other illicit activities.

The implementation of a CBDC would make countless U.S. citizens more vulnerable to intrusive federal oversight and security threats.โ€

Texas Senator Ted Cruz previously introduced a bill in March to ban the Federal Reserve from adopting a central bank digital currency as well.

If enough states decide to ban CBDCs, it could very well reduce the effectiveness of the new CBDC that the Federal Reserve is planning to launch soon.

Not much information is known about the project yet, but many are speculating that it will come sooner than later.

After all, many other countries are already successfully doing pilot tests of CBDCs and it seems that there is a competition among countries to roll this out as soon as possible.

Of course, most central banks seem to favor it, but it is unknown if this is in the best interest of the people given that CBDCs are often centralized.

This is unlike decentralized digital assets like Bitcoin and XRP where the users have direct control of the assets.

CoinDesk reports:

“The federal government has no authority to unilaterally establish a central bank currency,” Cruz said in a press release.

“This bill goes a long way in making sure big government doesnโ€™t attempt to centralize or control cryptocurrency and instead, allows it to thrive in the United States.”

The bill was cosponsored by Sens. Mike Braun (R-Ind.) and Charles Grassley (R-Iowa).

Earlier this week, Florida Gov. Ron DeSantis, who is a likely GOP presidential candidate, introduced a bill to prohibit the use of a national CBDC in Florida.

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