Cruz Introduces Bill To Block Fed, ‘Big Government’ From Establishing A CBDC By Benzinga

Benzinga – Republican Senator Ted Cruz of Texas has introduced a bill aimed at prohibiting the Federal Reserve from establishing a central bank digital currency (CBDC).

The bill, cosponsored by fellow Republican Senators Mike Braun of Indiana and Chuck Grassley of Iowa, seeks to prevent the federal government from using a CBDC as a financial surveillance tool.

Central bank digital currencies, unlike decentralized digital currencies like Bitcoin (CRYPTO: BTC), are issued and backed by a government entity and transact on a centralized, permissioned blockchain.

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The bill’s sponsors argue that a CBDC model could centralize Americans’ financial information, making it vulnerable to attack and allowing it to be used as a direct surveillance tool into private transactions.

“The federal government has no authority to unilaterally establish a central bank currency,” Cruz said. “This bill goes a long way in making sure big government doesn’t attempt to centralize or control cryptocurrency and instead, allows it to thrive in the United States.”

Braun also chimed in.

“Allowing the government to centralize Americans’ financial information and increase surveillance of Americans’ financial activity is simply a bad idea,” Braun said. “The federal government should not have even more control over your own money. I support this legislation to allow entrepreneurship to prosper and keep the federal government from further encroaching on your privacy rights.”

Grassley emphasized the importance of financial privacy, saying, “The American people ought to be able to spend their money how they choose without the possibility that every transaction could be tracked by the government.

A policy this impactful should be made by Congress, not government bureaucrats, he added.

“Every American deserves that peace of mind,” he said.

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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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