In a united effort, five U.S. senators are pushing back against the Biden administration’s proposed “digital dollar” by introducing legislation aimed at banning central bank digital currencies (CBDCs).
Led by Senator Ted Cruz, along with Senators Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, the group introduced the CBDC Anti-Surveillance State Act on Feb. 26. The legislation challenges the authority of the Federal Reserve to implement a CBDC, citing concerns about potential surveillance and threats to personal freedom.
Senators Protecting Financial Privacy
Senators Cruz, Scott, and Budd emphasized the importance of safeguarding the financial privacy of American citizens. Senator Budd voiced his concerns, stating that a CBDC could enable extensive government surveillance and control over spending habits, necessitating immediate action to prevent its establishment.
Describing CBDC as “government-controlled programmable money,” Senator Cruz warned about the risks of allowing such a system to collect personal data and exert control over individuals’ funds.
If enacted, the legislation would not only prohibit the Federal Reserve from implementing a CBDC but also mandate congressional authorization for any future issuance of such a currency. It aims to prevent the Federal Reserve from functioning as a retail bank.
Legislation Against Digital Dollar Gaining Broad Support and Endorsements
The legislation against the Digital Dollar has garnered support from various quarters, including five associations: Heritage Action for America (HAFA), the Blockchain Association, the American Bankers Association (ABA), the Independent Community Bankers Association (ICBA), and the Club for Growth (CFG).
Former President Donald Trump, who is eyeing the 2024 presidential election, has also voiced opposition to the creation of a CBDC. Citing concerns raised by Vivek Ramaswamy, Trump vowed to block any attempts to establish an in-house CBDC.
