Five U.S. senators have joined forces to oppose the Biden administration’s plan to issue a “digital dollar” and co-signed legislation calling for a ban on central bank digital currencies (CBDC).
On February 26, U.S. Senator Ted Cruz and Senators Bill Hagerty, Rick Scott, Ted Budd and Mike Braun co-introduced the "CBDC Anti-Surveillance State Act" to challenge the Federal Reserve's power to implement CBDC. Senators fear the Biden administration’s CBDC will be programmed to spy on citizens and infringe on freedoms.
Senator Cruz asked Congress to clarify that the Federal Reserve does not have the authority to implement a CBDC. The bill specifically violates the Fed’s authority to “provide certain products or services directly to individuals and prohibit the use of central bank digital currencies for monetary policy and other purposes.” Senators Scott and Bard emphasized the need to protect the financial privacy of American citizens. Bud added:
"A CBDC would open the door for the federal government to monitor and control the consumption habits of all Americans. Any push to create a CBDC must be faced and stopped, which is why I'm proud to join Senator Cruz's efforts to do just that."
Cruz announced in a legislative document describing a CBDC as a "government-controlled programmable currency" that could collect citizens' intimate personal information and potentially track and freeze funds for any reason.
If signed into law, the legislation would also require congressional authorization legislation for the issuance of any CBDC in the future. It will ensure that the Fed cannot mobilize into retail banks. In addition to the support of five senators, the legislation has been endorsed by five associations, namely Heritage Action for America (HAFA), Blockchain Association, American Bankers Association (ABA), Independent Community Bankers Association (ICBA) and Club Growth (CFG).
On the other hand, former President Donald Trump, who is running for the 2024 presidential election, has promised to “never allow” the formation of an in-house CBDC. Trump praised Vivek Ramaswamy for drawing attention to the negative impacts of CBDC.
