U.S. senator opposes creation of a retail CBDC

U.S. Senator Ted Cruz, a Republican from Texas, introduced a bill prohibiting the FRS from launching a consumer-oriented central bank digital currency (CBDC).

The federal government has no authority to unilaterally establish a central bank currency.

Read about my new bill in @FoxBusiness: Ted Cruz introduces bill blocking Fed from adopting central bank digital currencyhttps://t.co/LoX3u41nA4

— Senator Ted Cruz (@SenTedCruz) March 21, 2023

In his view, authorities should not create a product that “could be used by the federal government as a tool of financial surveillance.”

Cruz emphasised the importance of U.S. policy toward digital currencies “protecting financial privacy, upholding dollar sovereignty and fostering innovation.”

“CBDCs that do not adhere to these core principles could enable an institution such as the Federal Reserve to operate as a retail bank, collecting users’ personal information and tracking their transactions,” the senator explained.

Cruz also noted that the federal government “does not have the authority to unilaterally create” a central bank digital currency.

The initiative was backed by Republican Senators Mike Braun of Indiana and Chuck Grassley of Iowa.

“Americans should have the ability to spend their money as they see fit, without fear of a government that could track every transaction,” Grassley explained.

This is Cruz’s second bid to advance his bill. On 30 March 2022, the senator представил a similar document, but it never progressed beyond the committee stage.

Earlier in March, U.S. Representative Tom Emmer also opposed the digital dollar. In his view, CBDC technology affronts American values and could facilitate “financial control” over citizens.

Earlier he introduced a bill to protect “financial privacy” in the use of central bank digital currency. The main provision of the document is a prohibition on the Fed’s dissemination of CBDC to individuals.