U.S. Sen. Ted Cruz (R-Texas) along with several other senators has introduced legislation to halt the Biden administration's efforts to issue a central bank digital currency (CBDC). In a statement, Sen. Cruz expressed his concerns about the potential infringement on citizens' privacy, stating, "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." He emphasized the need for Congress to clarify that the Federal Reserve should not have the authority to implement a CBDC.
Sen. Bill Hagerty (R-Tenn.) highlighted the risks associated with a CBDC, mentioning past instances where government bureaucrats exploited the financial system for political purposes. He stated, "This bill blocks the issuance of a central bank digital currency, preventing CBDC from being used as a tool to surveil and violate Americans’ privacy."
Sen. Rick Scott (R-Fla.) echoed similar sentiments, emphasizing that government surveillance of personal finances is a significant overreach. He joined Sen. Cruz in introducing the CBDC Anti-Surveillance State Act to prevent intrusive practices and safeguard individuals' financial privacy.
Sen. Ted Budd (R-N.C.) emphasized the importance of maintaining financial privacy, especially in the face of an increasingly powerful government. He stated, "A CBDC would open the door for the federal government to surveil and control the spending habits of all Americans."
The proposed legislation aims to prohibit the Federal Reserve from issuing a CBDC directly to individuals or through financial institutions. It also seeks to prevent the Federal Reserve from using a CBDC as a tool to implement monetary policy and control the economy, requiring authorization from Congress for any CBDC issuance.
Various organizations including Heritage Action for America, the Blockchain Association, the American Bankers Association, the Independent Community Bankers Association, and Club for Growth have endorsed the legislation, citing concerns about privacy, financial stability, and economic growth.
Sen. Cruz, a vocal advocate for free markets and cryptocurrency, has a history of introducing legislation related to digital currencies. He has previously worked on bills to prohibit the Federal Reserve from developing CBDCs and has been involved in promoting the acceptance of cryptocurrency in Congress.
The introduction of the CBDC Anti-Surveillance State Act reflects ongoing debates and concerns surrounding the potential implications of central bank digital currencies on financial privacy and government surveillance.