Republican lawmakers have introduced a bill aimed at preventing the introduction of a CBDC in the US, citing concerns over potential privacy infringements.
Led by Senator Ted Cruz, along with Senators Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, the legislation titled “the CBDC Anti Surveillance State Act” seeks to clarify that the Federal Reserve lacks the authority to implement a CBDC.
As per the senators championing the bill, the introduction of federally-supported CBDCs may raise substantial privacy issues, potentially granting regulatory bodies insight into the personal spending patterns of American citizens.
Senator Ted Cruz’s press statement highlights that these digital currencies backed by the government could furnish federal authorities with detailed transaction data, including information at the individual user level.
Cruz added, “The Biden administration salivates at the thought of infringing on our freedom and intruding on the privacy of citizens to surveil their personal spending habits, which is why Congress must clarify that the Federal Reserve has no authority to implement a CBDC. I’m proud to lead the fight in the Senate to restrict the Federal Reserve’s exploration of and attempt to introduce a CBDC to the American economy.”
Currently, the Federal Reserve is only in the initial stages of basic research on CBDCs, with Fed Vice Chairman for Supervision Michael Bar stating that any progress would require approval from the White House and Congress.
Former President Donald Trump, the front-runner in the Republican leadership race, has promised to ban the creation of a CBDC.
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