Five senators from the United States have collaborated to oppose the Biden administration’s proposal to introduce a “digital dollar.” They have jointly endorsed legislation that calls for a prohibition on central bank digital currencies (CBDCs).
U.S. Senator Ted Cruz, accompanied by Senators Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, unveiled the CBDC Anti-Surveillance State Act earlier this week. This legislation questions the Federal Reserve’s power to roll out a CBDC. The senators expressed concerns that the proposed CBDC under the Biden administration might be designed to monitor citizens and encroach upon their liberties.
Senator Cruz urged Congress to confirm that the Federal Reserve lacks the jurisdiction to introduce a CBDC. The proposed legislation directly challenges the Federal Reserve’s ability to provide specific products or services directly to individuals and aims to restrict the use of central bank digital currency for monetary policy, among other objectives.
Senators Scott and Budd emphasized the importance of safeguarding the financial privacy of American citizens. “A CBDC would open the door for the federal government to surveil and control the spending habits of all Americans. Any push to establish a CBDC must be confronted and stopped, and that’s why I’m proud to join Senator Cruz’s effort to do just that,” said Budd.
In his statement regarding the legislation filing, Cruz characterizes CBDC as “government-controlled programmable money,” capable of gathering sensitive personal information about individuals and potentially monitoring and restricting funds arbitrarily.
If enacted, the legislation would additionally mandate congressional authorization for the issuance of any CBDC moving forward. This measure aims to prevent the Federal Reserve from transitioning into a retail bank.
Apart from the backing of five senators, the legislation has garnered support from five organizations: 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).
On a different note, former President Donald Trump, currently a candidate for the 2024 presidential election has pledged to prevent the establishment of an internal CBDC. Trump acknowledged Vivek Ramaswamy for raising awareness about the adverse effects of CBDCs.
