It’s been just revealed that Senator Ted Cruz has just introduced a bill that would prohibit the Fed from issuing a retail CBDC. Check out more details below.
Ted Cruz introduces bill to prohibit CBDC
A direct-to-consumer CBDC could be used as a “financial surveillance tool” by the federal government according to Cruz.
Blockworks notes that Cruz has proposed a bill echoing one introduced in the House in January. This was his attempt to maintain the dollar’s dominance without competing with the private sector.
As the same online publication notes, the latest planned legislation, introduced by the Republican senator from Texas, would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.
A direct-to-consumer CBDC could be used as a “financial surveillance tool” by the federal government, similar to what is happening in China, according to Cruz.
“The federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it,” Cruz said in a statement.
“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.”
It’s been revealed that the Federal Reserve issued a report that month that expressed potential interest in a CBDC that is “identity-verified” but did not take any policy stance. The agency is soliciting public comments through May 20.
“I’m glad Senator Cruz has agreed to offer a Senate companion to my legislation limiting the Fed’s authorities,” Rep. Tom Emmer said in a statement.
He continued and explained: “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.”