Texas Senator Ted Cruz has proposed legislation to prohibit the Federal Reserve from creating a central bank digital currency (CBDC) for consumer use.
The proposed bill aims to protect financial privacy by limiting the government’s capacity to track individual transactions, according to Cruz and his supporters.
The bill’s introduction comes as a response to concerns raised by Cruz and others about CBDCs. The legislation is designed to ensure that U.S. digital currency policies prioritize financial privacy, encourage innovation, and maintain the dominance of the U.S. dollar.
According to Cruz, CBDCs pose a risk of centralizing Americans’ financial information and making it vulnerable to cyberattacks. The Senator also suggested that CBDCs could be used as a surveillance tool by the government.
Both Senator Braun and Senator Grassley co-sponsored the bill, supporting financial privacy and individual liberty. In November 2022, Cruz also highlighted the potential benefits of Bitcoin mining for the state of Texas.
