U.S. Senator Introduces Bill To BAN Federal Reserve From Creating CBDC

By Vince • February 26, 2024 7:55 pm • Comments

One U.S. Senator is taking a staunch stand against the creation of a central bank digital currency.

Senator Ted Cruz (R-TX) has introduced a bill that would ban the Federal Reserve Banking System from creating a direct-to-consumer CBDC.

The Republican lawmaker cited privacy concerns, as well as the tyranny and control that a CBDC would afford the U.S. government, as reasons why the creation of such a technology should be outright banned.

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Cruz then went on to draw a parallel between a proposed CBDC and how China controls its citizens through similar digital schemes. In a statement, Cruz explained:

“The federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it.

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. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom—not stifling it.”

Jack Straw speculated: “Does this serve as evidence that fiat Central Bank Digital Currencies (CBDCs) were destined to fail from the outset and were only utilized as a tool to bring about societal awareness/waking up of Normies?

It’s widely understood that Central Bank Digital Currencies (CBDCs) lacking backing in precious metals or commodities were doomed to fail, much like any fiat currency.”

Ted Cruz further explained his position via this press release:

U.S. Sen. Ted Cruz (R-Texas), member of the Senate Commerce Committee, today introduced legislation to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals. Sen. Cruz’s bill was cosponsored by Sens. Braun (R-IN) and Grassley (R-IA).

Specifically, 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 bill aims to maintain the dollar’s dominance without competing with the private sector.

As other countries, like China, develop CBDCs that omit the benefits and protections of cash, it is more important than ever to ensure the United States’ digital currency policy protects financial privacy, maintains the dollar’s dominance, and cultivates innovation.

CBDCs that fail to adhere to these three basic 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. It is important to note that the Fed does not, and should not, have the authority to offer retail bank accounts.

Unlike decentralized digital currencies like Bitcoin, CBDCs are issued and backed by a government entity and transact on a centralized, permissioned blockchain.

Not only would this CBDC model centralize Americans’ financial information, leaving it vulnerable to attack, it could be used a direct surveillance tool into the private transactions of Americans.

Senator Rick Scott echoed Cruz: “Big government has no business spying on Americans to control their personal finances & track their transactions. It’s a massive overreach. Proud to join Senator Ted Cruz to intro the CBDC Anti-Surveillance State Act to stand up against this invasive practice.”

Fox Business added:

Texas Republican Sen. Ted Cruz, ranking member on the Senate Commerce Committee, told FOX Business that he and four Senate colleagues, including Bill Hagerty, R-Tenn., Rick Scott, R-Fla., Ted Budd, R-N.C., Mike Braun, R-Ind., and Kevin Cramer, R-N.D., will sponsor a new bill called the Central Bank Digital Currency Anti-Surveillance State Act.

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